True or false

must be held for more than one yeal Incentive stock options are an AMT adjustment. 5, 4. Personal property depreciated using straight-line depreciation is not subject to Section 1245 recapture. 6, Charitable contributions are limited to 60% of for corporations. 7. Capital gains are taxed as "capital" income for corporations. 8. Capital losses can only be offset by capital gains. 9 Federal income tax is tax deductible 10. Section 197 covers the tax issues regarding intangible assets, like goodwill. II. A taxpayer's holding period is always measured from the day after the taxpayer acquires the property. 12. The "dividends received" deduction is to offset "triple-taxation" 13. Section 1243 recapture does not apply to depreciable real property 14. Both C and S corporations recognize gain on the distribution of appreciated property and recognize a loss when it distributes property that has declined in value. 15. The "dividends received" deduction cannot create a "net operating loss" 16 A corporation that owns 80 % of the stock in another corporation is not taxed on the dividends it receives from the other corporation. 17. Corporations can use capital losses to offset ordinary income 18. Book income and taxable income are normally the same. 19. C corporations cannot use the cash method of accounting if their average annual taxable income for the three previous tax years exceed $5 million. 20. C Corporations must pay estimated tax payments if the previous year's income tax was $500 or more 21. The differences between book income and taxable income are reconciled in Schedule M-1. 22. Large corporations (assets $10,000,000) must use a Schedule M-3 for the income differences. 23. C Corporations do not pay Alternative Minimum Tax. 24. Controlled groups must allocate tax attributes between them. 25. C Corporation must file Form 1120 to report their taxes by April 15