Corporate Taxation Paper 4

1

A corporation that has been an S corporation from its inception may
Have both passive and nonpassive income
Be owned by a bankruptcy estate






2

Bern Corp., an S corporation, had an ordinary loss of $36,600 for the year ended December 31, 2012. At January 1, 2012, Meyer owned 50% of Bern’s stock. Meyer held the stock for forty days in 2012 before selling the entire 50% interest to an unrelated third party. Meyer’s basis for the stock was $10,000. Meyer was a full-time employee of Bern until the stock was sold. Meyer’s share of Bern’s 2012 loss was






3

A calendar-year corporation whose status as an S corporation was terminated during 2012 must wait how many years before making a new S election, in the absence of IRS consent to an earlier election?






4

Which one of the following will render a corporation ineligible for S corporation status?






5

With regard to S corporations and their stockholders, the “at risk” rules applicable to losses






6

An S corporation may deduct






7

An S corporation’s accumulated adjustments account, which measures the amount of earnings that may be distributed tax-free






8

If a calendar-year S corporation does not request an automatic six-month extension of time to file its income tax return, the return is due by






9

An S corporation is not permitted to take a deduction for






10

An S corporation may






Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage: