QUESTION 1

X Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $2 million for 2016. The company is not a small corporation. If the regular corporate tax is $326,562 X Corporations alternative minimum tax for 2016 is:

a. $326,562

b. $400,000

c. $73,438

d. $47,000

e. None of these choices are correct.

QUESTION 2

X Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $170,000 for 2016. The company is not a small corporation. If the regular corporate tax is $21,000, X Corporations alternative minimum tax for 2016 is:

a. $27,000

b. $21,000

c. $135,000

d. $6,000

e. None of these choices are correct.

QUESTION 3

During 2016, X Corporation (a calendar year taxpayer) has $2,000,000 of taxable income, is subject to a tax rate of 34%, and has the following transactions:

AMTI (not including adjusted current earnings)

$3,000,000

Adjusted current earnings

$4,000,000

X Corporation's alternative minimum tax (AMT) for 2016 is:

a. $750,000

b. $70,000

c. $500,000

d. $1,360,000

e. None of these choices are correct.

QUESTION 4

In 2016, X Corporation, a calendar year taxpayer, has AMTI (before adjustment for adjusted current earnings) of $8 million. If X Corporation's ACE is $14 million, its tentative minimum tax for 2016 is:

a. $2.75 million

b. $4.2

c. $3.45 million

d. $2.5 million

e. None of these choices are correct.

QUESTION 5

X Corp. manufactures jewelry and is a retail seller of jewelry purchased as inventory that is completely made by other vendors.X Corp. has DPGR of $400,000, QPAI of $320,000, and taxable income of $150,000.Also, W-2 wages related to DPGR are $80,000. What is the allowable DPAD, if any, for 2016?

a. $6,000

b. $9,000

c. $7,170

d. None

e. Some other amount.

QUESTION 6

Taxpayer A and Taxpayer B each own 50% of Corporation X, a calendar year taxpayer. Taxpayer A has a stock basis of $200,000; and Taxpayer B has a stock basis of $200,000. Distributions from Corporation X are: $800,000 to Taxpayer A on May 1 and $200,000 to Taxpayer B on June1. Corporation X's current E & P is $500,000 and its accumulated E & P is $400,000. How much of the accumulated E & P is allocated to Taxpayer A's distribution?

a. $100,000

b. $400,000

c. $300,000

d. $0

e. None of these choices are correct.

QUESTION 7

Taxpayer A and Taxpayer B each own 50% of Corporation X, a calendar year taxpayer.Taxpayer A has a stock basis of $200,000; and Taxpayer B has a stock basis of $200,000. Distributions from Corporation X are: $800,000 to Taxpayer A on May 1 and $200,000 to Taxpayer B on June1. Corporation X's current E & P is $500,000 and its accumulated E & P is $400,000. How much of the accumulated E & P is allocated to Taxpayer B's distribution?

a. $100,000

b. $400,000

c. $300,000

d. $0

e. None of these choices are correct.

QUESTION 8

Taxpayer A and Taxpayer B each own 50% of Corporation X, a calendar year taxpayer. Taxpayer A has a stock basis of $200,000; and Taxpayer B has a stock basis of $200,000. Distributions from Corporation X are: $800,000 to Taxpayer A on May 1 and $200,000 to Taxpayer B on June1. Corporation X's current E & P is $500,000 and its accumulated E & P is $400,000. How much of the current E & P is allocated to Taxpayer A's distribution?

a. $100,000

b. $400,000

c. $300,000

d. $0

e. None of these choices are correct.

QUESTION 9

Taxpayer A and Taxpayer B each own 50% of Corporation X, a calendar year taxpayer. Taxpayer A has a stock basis of $200,000; and Taxpayer B has a stock basis of $200,000. Distributions from Corporation X are: $800,000 to Taxpayer A on May 1 and $200,000 to Taxpayer B on June1. Corporation X's current E & P is $500,000 and its accumulated E & P is $400,000. How much of the current E & P is allocated to Taxpayer B's distribution?

a. $100,000

b. $400,000

c. $300,000

d. $0

e. None of these choices are correct.

QUESTION 10

Taxpayer A and Taxpayer B each own 50% of Corporation X, a calendar year taxpayer. Taxpayer A has a stock basis of $200,000; and Taxpayer B has a stock basis of $200,000. Distributions from Corporation X are: $800,000 to Taxpayer A on May 1 and $200,000 to Taxpayer B on June1. Corporation X's current E & P is $500,000 and its accumulated E & P is $400,000. How much, if any, return of capital does Taxpayer A recognize?

a. $100,000

b. $400,000

c. $300,000

d. $0

e. None of these choices are correct.

QUESTION 11

Taxpayer A and Taxpayer B each own 50% of Corporation X, a calendar year taxpayer. Taxpayer A has a stock basis of $200,000; and Taxpayer B has a stock basis of $200,000. Distributions from Corporation X are: $800,000 to Taxpayer A on May 1 and $200,000 to Taxpayer B on June1. Corporation X's current E & P is $500,000 and its accumulated E & P is $400,000. How much, if any, return of capital does Taxpayer B recognize?

a. $100,000

b. $400,000

c. $300,000

d. $0

e. None of these choices are correct.