The goodwill of SES Corporation was impaired by $1.2 million in 2023, according to the company's auditors. This amount is deductible in the year of the impairment. Question 15 options: True False

Which of the following are not included on Schedule M-1? Question 16 options: Ending balance of retained earnings Cash distributions to shareholders Tax-exempt bond interest Corporate bond interest More than one of the above are not included.

Rock Quarry Corporation (RQC), a calendar year C corporation, reported book income of $200,000 in 2022. Included in that amount was $49,000 for 50% meal expenses and $20,000 for federal income tax expense. What is taxable income reported on RQC's Schedule M-1? Question 17 options: $210,000 $269,000 $244,500 $204,500

Pacific Swimwear Corporation (PSC) had a 1/1/2023 credit balance in its warranty reserve account of $180,000. During 2023, PSC accrued estimated warranty expenses of $23,000. At 12/31/2022, ACC's warranty reserve had a $81,000 credit balance. PSC can deduct $23,000 for warranty expense. Question 18 options: True False

In 2023, ZEP Corporation realized a $48,000 net capital gain. This gain is included in taxable income and taxed at 21 percent. Question 19 options: True False

Simons Corporation realized a $100,000 net capital loss in 2023 from the sale of securities. A net capital loss for a C corporation is not deductible against ordinary income. Question 20 options: True False