Corporate Taxation MCQs

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Alan, Baker, and Carr formed Dexter Corporation during 2013. Pursuant to the incorporation agreement, Alan transferred property with an adjusted bas...






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Jones incorporated a sole proprietorship by exchanging all the proprietorships assets for the stock of Nu Co., a new corporation. To qualify for ta...






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Feld, the sole stockholder of Maki Corp., paid $50,000 for Makis stock in 2007. In 2013, Feld contributed a parcel of land to Maki but was not give...






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Rela Associates, a partnership, transferred all of its assets, with a basis of $300,000, along with liabilities of $50,000, to a newly formed corpor...






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Roberta Warner and Sally Rogers formed the Acme Corporation on October 1, 2012. On the same date Warner paid $75,000 cash to Acme for 750 shares of ...






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Jackson, a single individual, inherited Bean Corp. common stock from Jacksons parents. Bean is a qualified small business corporation under Code Se...






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Which of the following is not a requirement for stock to qualify as Sec. 1244 small business corporation stock?






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During the current year, Dinah sold Sec. 1244 small business corporation stock that she owned for a loss of $125,000. Assuming Dinah is married and ...






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Nancy, who is single, formed a corporation during 2007 using a tax-free asset transfer that qualified under Sec. 351. She transferred property havin...






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A civil fraud penalty can be imposed on a corporation that underpays tax by






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Bass Corp., a calendar-year C corporation, made qualifying 2012 estimated tax deposits based on its actual 2011 tax liability. On March 15, 2013, Ba...






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Edge Corp., a calendar-year C corporation, had a net operating loss and zero tax liability for its 2012 tax year. To avoid the penalty for underpaym...






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A corporations tax year can be reopened after all statutes of limitations have expired if I. The tax return has a 50% nonfraudulent omission from ...






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A corporations penalty for underpaying federal estimated taxes is






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Blink Corp., an accrual-basis calendar-year corporation, carried back a net operating loss for the tax year ended December 31, 2012. Blinks gross r...






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When computing a corporations income tax expense for estimated income tax purposes, which of the following should be taken into account? Corporate...






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Finbury Corporations taxable income for the year ended December 31, 2012, was $2,000,000 on which its tax liability was $680,000. In order for Finb...






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Green Corp. was incorporated and began business in 2010. In computing its alternative minimum tax for 2011, it determined that it had adjusted curre...






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Eastern Corp., a calendar-year corporation, was formed during 2011. On January 3, 2012, Eastern placed five-year property in service. The property w...






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If a corporations tentative minimum tax exceeds the regular tax, the excess amount is






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






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






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






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






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Bradbury Corp., a calendar-year corporation, was formed on January 2, 2009, and had gross receipts for its first four taxable years as follows: Yea...






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Which of the following entities must include in gross income 100% of dividends received from unrelated taxable domestic corporations in computing re...






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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 i...






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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 v...






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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 exch...






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






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






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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 Berns st...






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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 ...






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






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






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An S corporation may deduct






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






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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






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An S corporation is not permitted to take a deduction for






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An S corporation may






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Which of the following is not a requirement for a corporation to elect S corporation status (Subchapter S)?






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Brooke, Inc., an S corporation, was organized on January 2, 2012, with two equal stockholders who materially participate in the S corporations busi...






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Jaxson Corp. has 200,000 shares of voting common stock issued and outstanding. King Corp. has decided to acquire 90% of Jaxsons voting common stock...






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Ace Corp. and Bate Corp. combine in a qualifying reorganization and form Carr Corp., the only surviving corporation. This reorganization is tax-free...






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In a type B reorganization, as defined by the Internal Revenue Code, the I. Stock of the target corporation is acquired solely for the voting stock...






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Pursuant to a plan of corporate reorganization adopted in July 2012, Gow exchanged 500 shares of Lad Corp. common stock that he had bought in Januar...






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Which one of the following is a corporate reorganization as defined in the Internal Revenue Code?






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With regard to corporate reorganizations, which one of the following statements is correct?






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Which one of the following is not a corporate reorganization as defined in the Internal Revenue Code?






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Claudio Corporation and Stellar Corporation both report on a calendar-year basis. Claudio merged into Stellar on June 30, 2012. Claudio had an allow...






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In 2009, Celia Mueller bought a $1,000 bond issued by Disco Corporation for $1,100. Instead of paying off the bondholders in cash, Disco issued 100 ...






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On April 1, 2012, in connection with a recapitalization of Oakbrook Corporation, Mary Roberts exchanged 500 shares that cost her $95,000 for 1,000 s...