Robert is a 50% partner in the RB partnership. RB partnership has taxable income for the year of $400,000. Robert received a $75,000 distribution from the partnership. What amount of income related to RB partnership must Robert recognize in his personal income tax return?

Question 1 options:

	$100,000
	$200,000
	$75,000
	$37,500

Which of the following is not a requirement that must be met for a corporate redemption to be treated as substantially disproportionate?

Question 2 options:

	After the redemption, the shareholder must own less than 80% of his/her percentage ownership prior to the redemption.
	Before the redemption, the shareholder must own at least 50% of the outstanding stock.
	The shareholder must have less than 50% of the voting control after the redemption.
	For purposes of measuring voting control and ownership, family attribution rules apply both before and after the redemption.

Which of the following statements is correct with respect to determining current E & P of a corporation?

Question 3 options:

	Federal income tax refunds should be subtracted from taxable income.
	Dividends received deduction should be subtracted from taxable income.
	Expenses in connection with tax exempt income should be added back to taxable income.
	All tax-exempt income should be subtracted from taxable income.
	Current year charitable contributions in excess of the 10% of taxable income limit should be subtracted from taxable income.

Macaroni Corporation, a calendar year accrual method C corporation, has two cash method, calendar year shareholders who are unrelated to each other. Carlene owns 40% of the stock, and Olivia owns the remaining 60%. During 2019, Macaroni paid a salary of $125,000 to each shareholder. On December 31, 2019, Macaroni accrued a bonus of $50,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 2, 2020, how much of the base salary and bonus payments are deductible by Macaroni in 2019:

Question 4 options:

	$300,000
	$250,000
	$175,000
	$350,000

Mitchell and Powell form Green, a C Corporation. Mitchell transfers property (basis of $105,000 and fair market value of $90,000) while Powell transfers both land (basis of $8,000 and fair market value of $75,000) and $15,000 of cash. Each onlyreceives 50% of Green Corporations stock (total value of $180,000). As a result of these transfers:

Question 5 options:

	Powell will have basis of $75,000 in his shares of Green Corporation.
	Neither Mitchell nor Powell has any recognized gain or loss.
	Mitchell has no recognized loss, but Powell has a recognized gain of $15,000.
	Mitchell has a recognized loss of $15,000, and Powell has a recognized gain of $67,000.

Ralph and Peter form Sparrow, a C Corporation, with the following investments. Ralph transfers machinery (basis of $140,000 and fair market value of $200,000), while Peter transfers land (basis of $120,000 and fair market value of $190,000) and services rendered (worth $10,000) in organizing the corporation. Each shareholder is issued 25 shares in Sparrow Corporation representing 50% ownership for each of them. With respect to the transfers:

Question 6 options:

	Ralph has no recognized gain; Peter recognizes income of $10,000.
	Neither Ralph nor Peter has recognized gain or income on the transfers.
	Sparrow Corporation has a basis of $130,000 in the land transferred by Peter.
	Peter has a basis of $120,000 in the 25 shares he acquires in Sparrow Corporation.