Please answer the Multiple choice questionsto the best of your knowledge. 1) Fleet, Inc. owns 85% of the stock of Pete, Inc. and 35% of the stock of Zete, Inc. and 90% of the stock of Stock ownership of Bete, Inc. Bete owns 5% of the stock of Pete and 5% of the stock of Zete. Zete owns 10% of the stock of Bete. The remaining stock of Pete and Zete is owned by unrelated individuals. Which of the following statements is correct? A) Fleet, Zete, Pete, and Bete are an affiliated group. B) Fleet and Zete are an affiliated group. C) Fleet and Pete are an affiliated group. D) Fleet, Pete, and Bete are an affiliated group.

2) Aaron, Inc. is a nonprofit corporation that collects and distributes food for needy families. Aaron, Inc. also operates a small grocery store for profit. Which of the following statements is true? A) The income from the collection and distribution of food and the income from grocery store are taxable. B) No income from either of the activities is taxable. C) Only the income from the collection and distribution of food is taxable. D) Only the income from the grocery store is taxable.

3) In its first taxable year, Platform, Inc. generated a $100,000 net operating loss and made a $10,000 cash donation to a local charity. In its second year, Platform generated $350,000 operating income and made a $20,000 donation to the same charity. Compute Platform's taxable income for its second year. A) $220,000 B) $235,000 C) $320,000 D) $230,000

4) Which of the following statements regarding the current year tax treatment of corporate dividends is true? A) All shareholders receiving dividend payments from U.S. corporations are entitled to a dividends-received deduction. B) Dividends-received from foreign corporations are not eligible for the dividends-received deduction. C) Corporations are entitled to deduct dividend payments to shareholders in calculating corporate taxable income. D) Dividend payments between members of an affiliated group of corporations filing a consolidated return are tax exempt.

5) A corporation that owns more than $10 million of total assets uses which schedule to reconcile book income to taxable income? A) Schedule M-1 B) Schedule M-2 C) Schedule M-3 D) Schedule M-4 6) Poppy's book income of $739,300 includes a net long-term capital loss of $42,000 and federal income tax expense of $170,000. Based only on these items, Poppy's taxable income is: A) $739,300 B) $951,300 C) $909,300 D) $781,300

7) Borough, Inc. is entitled to a rehabilitation credit of $500,000 for its current tax year. The corporation's regular tax liability is $450,000. No estimated tax payments have been made. Which of the following statements is true? A) The corporation should receive a tax refund for the current year. B) The portion of the rehabilitation credit that cannot be used this year will be lost. C) The current year credit equals 20 percent of the total credit allowed for rehabilitation of a certified historic structure. D) The credit is available for restoration of a building that is at least ten years old.

8) Which of the following statements regarding the rehabilitation credit is false? A) After 2017, the credit is available only for costs incurred to rehabilitate certified historic structures. B) The credit is intended to encourage businesses to undertake urban renewal projects. C) The credit is claimed only in the year in which the rehabilitated property is placed in service. D) The credit equals 20 percent of qualified rehabilitation costs.

9) What is the extended due date of the federal income tax return of a corporation with a tax year ended June 30, 2018? A) October 15, 2018 B) May 15, 2019 C) April 15, 2019 D) March 15, 2019