Corporate Taxation Paper 3


Rona Corp.’s 2012 alternative minimum taxable income was $200,000. The exempt portion of Rona’s 2012 alternative minimum taxable income was


A corporation’s tax preference items that must be taken into account for 2013 alternative minimum tax purposes include


In computing its 2013 alternative minimum tax, a corporation must include as an adjustment


A corporation will not be subject to the alternative minimum tax for calendar year 2013 if


Bradbury Corp., a calendar-year corporation, was formed on January 2, 2009, and had gross receipts for its first four taxable years as follows:
Year . . . . . . Gross receipts
2009 . . . . . . $4,500,000
2010 . . . . . . 9,000,000
2011 . . . . . . 9,500,000
2012 . . . . . . 6,500,000
What is the first taxable year that Bradbury Corp. is not exempt from the alternative minimum tax (AMT)?


Which of the following entities must include in gross income 100% of dividends received from unrelated taxable domestic corporations in computing regular taxable income?
Personal service corporations . . . .Personal holding companies


Andi Corp. issued $1,000,000 face amount of bonds in 2004 and established a sinking fund to pay the debt at maturity. The bondholders appointed an independent trustee to invest the sinking fund contributions and to administer the trust. In 2012, the sinking fund earned $60,000 in interest on bank deposits and $8,000 in net long-term capital gains. All of the trust income is accumulated with Andi’s periodic contributions so that the aggregate amount will be sufficient to pay the bonds when they mature. What amount of trust income was taxable to Andi in 2012?


The following information pertains to treasury stock sold by Lee Corp. to an unrelated broker in 2013:
Proceeds received $50,000
Cost 30,000
Par value 9,000
What amount of capital gain should Lee recognize in 2013 on the sale of this treasury stock?


During 2013, Ral Corp. exchanged 5,000 shares of its own $10 par common stock for land with a fair market value of $75,000. As a result of this exchange, Ral should report in its 2013 tax return


If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder


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