Question
Which of the following has a carry back/ carry forward period of back 3 years, and forward 5 years? A) Charitable contributions B) General Business
Which of the following has a carry back/ carry forward period of back 3 years, and forward 5 years?
A) Charitable contributions
B) General Business Credits
C) Net Capital Losses
D) Net Operating Losses
Which of the following only increases unappropriated retained earnings per books on Schedule M-2 (Form 1120)?
A) Cancellation of appropriated retained earnings
B) Change in accounting principle
C) Conversion of convertible securities
D) Prior-Period Adjustments
Roe Corporation owns 100% of Turner Company (a non-includible foreign entity.) Turner distributed $22,000. in dividends during the year to Roe Corporation. Turners net income for the year was $650,000. In preparing the consolidated financial statements, Roe eliminated the intercompany dividend of $22,000. Roes consolidated book income is $2,950,000 ($2,300,000 is from Roe and $650,000 is from Truner). What amount would be reported by Roe in its consolidated Schedule M-3 as net income or loss per income statement of includable corporations?
A) $2,300,000
B) $2,322,000
C) $2,950,000
D) $2,972,000
A corporation is in the business of selling used cars. This year, A corporation has net income per books of $500,000 before provision for federal income taxes. A corporation has gross profit from installment sales is $300,000 for the year. For tax purposes, A recognizes all of the gross profit at the time of sale. For book purposes, A recognizes gross profit of $175,000. What is As taxable income on Schedule M-1 (Form 1120) for the year?
A) $325,000
B) $625,000
C) $675,000
D) $800,000
Schedule M-3, Part I, lines through 3, does not compile information related to:
A) Income statement and restatement.
B) Public trading status.
C) Source of financial statement net income.
D) Total assets.
Schedule M-1 requires the addition of federal income tax on line 2. Federal Income tax includes which of the following?
A) Only federal income and estate taxes.
B) Only federal income and FUTA taxes.
C) Only Federal income taxes.
D) Only FUTA and FICA taxes.
Which of the following is Not shown on schedule M-2?
A) Cash dividends on preferred stock.
B) Liquidating Dividends.
C) Property dividends.
D) Stock dividends.
For the source of financial statement net income (Schedule M-3, Part I Line 1), the Internal Revenue service:
A) Considers the certified audited non-tax basis income statements to be of the lowest confidence level.
B) Considers the SEC Form 10-K to be in the highest confidence level.
C) Does not permit the use of non-tax basis unaudited income statements.
D) Does not permit the use of the entitys books and records.
Ross corporation has controlling interests in the following international companies. Which of these international companies would not require an adjustment by Ross for non-includable foreign income on Schedule M-3, Part I?
A) G company, A Mexican partnership with 80% interest
B) K Company, A Canadian company with 100% interest
C) S company an Irish entity with 80% interest
D) W company a German entity (90% interest)
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