QUESTION 39 Which of the following increases the stock basis of a shareholder of an Corporation Nontaxable i riurance Proceeds where the Corporation in the beneficiary of Life Insurance Polo Selling Expenses Expenses related to Tax.Exempt Income Table Distributions from the Accumulated Eamings And Protti (AEP) of the Corpoention QUESTION 40 Robble, an individual is a fifty percent (50%) owner of the calendar year Falls Corporation an 5 Corporation. During the year of 2021. Falls Corporation has Ordinary Income of $175,000, Short-Term Capital Gain of $94,000 and Charitable Contribution of $18,000. What must Robbie report on her personal Federal Income Tax Return (Form 1040) for the year of 2021 for the activities of Falls Corporation? Ordinary income of $47,500 and Chantable Contribution Deduction of $9,000 Ordinary Income of $87,500, Short-Term Capital Gain of $47,000 and Charitable Contribution Deduction of $9.000 Ordinary Income of $87,500 and Short-Term Capital Gain of $47.000. Ordinary income of $87,500, Short-Term Capital Gain of $47.000 and Charitable Contribution Deduction of $18,000 QUESTION 37 Blanton Corporation, an s Corporation, distributes a machine to Gates, a majority shareholder in Blanton Corporation. The machine has an adjusted basis of $30,000 and a Fair Market Value of 580,000. Blanton Corporation recognizes a gain for the distribution of the machine of $50,000 O $0 $30,000 $80,000 QUESTION 38 Norman Corporation, a calendar years Corporation, has an Operating Loss of $80,000 and a Long-Term Capital Loss of $20,000 for the year of 2021. Monica, an Individual owns forty percent (40%)% of the stock of Norman Corporation and has a $25,000 basis in her stock at the beginning of the year of 2021. What amount of the Long-Term Capital Loss can Monica deduct on her personal Federal Income Tax Return (Form 1040) for the year of 2021? $25,000 OS 5,000 $40,000 $20,000 QUESTION 36 Which of the following has no affect on the Accumulated Adjustments Account (AAA) of an S Corporation? Expenses related to Tax-Exempt Income. Nontaxable Distributions to shareholders of the S Corporation Charitable Contribution. Section 1231 Gain. QUESTION 36 Which of the following has no affect on the Accumulated Adjustments Account (AA) of an 5 Corporation? Expenses related to Tax Exempt Income Nontaxable Distributions to shareholders of the S Corporation Charitable Contribution Section 1231 Gain QUESTION 37 Blanton Corporation, an S Corporation, distributes a machine to Gates, a majority shareholder in Blanton Corporation. The machine has an adjusted basis of $30,000 and a Fair Market Value of $80,000. Blanton Corporation recognizes a gain for the distribution of the machine of: O $50,000 O $0. @ $30,000 $80,000 QUESTION 38 Norman Corporation, a calendar years Corporation has an Operating loss of $80,000 and a Long Term Capital Loss of $20,000 for the year of 2021. Monica, an Individual, owns forty percent (40%) of the stock of Norman Corporation and has a $25,000 basis in her stock at the beginning of the year of 2021. What amount of the Long Term Capital Loss can Monica deduct on her personal Federal Income Tax Return (Form 1040) for the year of 20217 $25,000 O $5,000 $40,000 $20,000 QUESTION 39 Which of the following increases the stock basis of a shareholder of an S Corporation? Nontaxable Life Insurance Proceeds where the S Corporation is the beneficiary of the Life Insurance Policy Selling Expenses. Expenses related to Tax-Exempt Income. Taxable Distributions from the Accumulated Earnings And Profits (AEP) of the S Corporation 0 QUESTION 40 Robbie, an individual, is a fifty percent (50%) owner of the calendar year Falls Corporation, ans Corporation. During the year of 2021. Falls Corporation has Ordinary Income of $175,000, Short-Term Capital Gain of $94,000 and Charitable contribution of $18,000. What must Robbie report on her personal Federal Income Tax Return (Form 1040) for the year of 2021 for the activities of Falls Corporation? Ordinary Income of $47,500 and Charitable Contribution Deduction of $9,000 Ordinary Income of $87,500, Short-Term Capital Gain of $47,000 and Charitable Contribution Deduction of $9,000 Ordinary Income of 587,500 and Short-Term Capital Gain of $47.000 Ordinary Income of $87.500, Short-Term Capital Gain of 547,000 and Charitable Contribution Deduction of 18,000
