Solve the next questions TRUE or FALSE

1.Although the corporate income tax rates are progressive, the benefits of the lower brackets are phased out as taxable income increases.

2.Unlike individuals, corporate taxpayers are not allowed to offset a certain amount of net capital losses against ordinary income

3.Like individuals, corporations are allowed to carry over excess capital losses indefinitely

4.Like individuals, corporations are not permitted an unlimited charitable contribution deduction

5.The purpose of the dividends received deduction is to prevent triple taxation or dividends received from another corporation

6.Distributions of cash or property to shareholders are treated as dividends to the extent that the distribution can be made out of current or accumulated earnings and profits (E&P)

7.A corporation need not file a federal income tax return if it has no taxable income for the year

8.A shareholder receives a cash distribution from a corporation that has no earnings and profits (either current or accumulated). The distribution is treated as a return of capital

9.To make an S election, a majority of the corporations shareholders must consent

10.If the shareholders of a regular corporation (calendar year taxpayer) elect S status on March 12, 2019, the election is effective for all of 2019

11.An S corporation can have losses from both operations and separately stated losses

12.A shareholders basis in the stock investment in an S corporation can never be reduced to below zero

13.Like corporations, partnerships are considered to be separate taxable entities and are subject to taxation at the entity level

14.Partnerships do have to file a tax return even though they are not separate taxable entities

15.A partners basis in a partnership interest is decreased by the proportionate share of the capital losses recognized by the partnership

16.Otto has a 60% capital interest in the Lavender Partnership. Otto sells land (basis of $100,000) to Lavender for its fair market value of $89,000. The $11,000 realized loss cannot be recognized by Otto

17.Guaranteed payments are nondeductible to the partnership and nontaxable to the partner receiving the payments

18.The imposition of a tax of 15% on all income would be progressive in nature because a person earning $200,000 would pay twice as much as someone earning $100,000

19.The retail sale of gasoline in the U.S. is subject to both Federal and state excise taxes

20.Salaries, wages, and amounts paid for employee benefit programs would be ordinary deductions included in the calculation of the partnerships ordinary income (loss)