Question 1 (2 points) Ficus, Inc. began business on April 1, 2012, and elected to file its income tax return on a calendar-year basis. The corporation incurred $600 in organizational expenditures. Assuming the corporation does not elect to expense but chooses to amortize the costs over 180 months, the maximum allowable deduction for amortization of organizational expenditures in 2012 is: O a) $20 Ob) $21.67 O c) $30 O d) $40 O e) None of the above Question 2 (2 points) ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. JMT pays a $100,000 dividend to ABC and DEM pays a $40,000 dividend to ABC in 2012. Assuming that ABC has $1,000,000 of ordinary income, calculate ABC's dividends received deduction for 2012. O a) $120,000 Ob) $132,000 O c) $140,000 O d) $112,000 O e) None of the above is correct.

Ficus, Inc. began business on April 1, 2012, and elected to file its income tax return on a calendar-year basis. The corporation incurred $600 in organizational expenditures. Assuming the corporation does not elect to expense but chooses to amortize the costs over 180 months, the maximum allowable deduction for amortization of organizational expenditures in 2012 is: a) $20 b) $21.67 c) $30 d) $40 e) None of the above Question 2 ( 2 points) ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. JMT pays a $100,000 dividend to ABC and DEM pays a $40,000 dividend to ABC in 2012. Assuming that ABC has $1,000,000 of ordinary income, calculate ABC's dividends received deduction for 2012. a) $120,000 b) $132,000 c) $140,000 d) $112,000 e) None of the above is correct