Log in
Accounting
1
answer
0
watching
145
views

Identify which of the following statements is true.

A. Capital losses incurred by a C corporation can be used tooffset the​ corporation's ordinary income.

B. C corporation operating losses are deductible by theindividual shareholders.

C. If a C corporation does not distribute its income to itsshareholders​ annually, double taxation cannot occur.

D. All of the above are false.

Watch
1
answer
0
watching
145
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Reid Wolff
Reid WolffLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

11. Bread Corporation is a C corporation with earnings of $150,000. It paid $60,000 of dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter, an S Corporation. Butter had net taxable income of $40,000 and made a $30,000 distribution to Gerald. What total income will Gerald report from Bread and Butter’s activities?

$90,000

$190,000

$150,000

$100,000

12. At the first of the year, Arch and Bean contribute cash equally to form the JK partnership. Arch and Bean share profits and losses in a ratio of 75% to 25% respectively. For the current year, the partnership's ordinary income was $40,000. A distribution of $5,000 was made to Arch during the current year. What amount of ordinary income should Bean report from the JK partnership?

$5,000

$20,000

$10,000

$40,000

13. Identify which of the following statements is true.
All cash distributions from a partnership require the partners to pay taxes on those distributions.

Distribution of partnership income in the form of cash to partners is generally taxable to the

partners as long as there is sufficient basis.

If property distributions exceed the partner's basis in the partnership interest, a partner would not have to recognize gain on a distribution from the partnership.

All of the above are true.

14. Stan had a basis in his 50% partnership interest at the beginning of this year of $20,000 in a partnership in which he actively participates. There was no change in partnership liabilities during the year. The partnership's ordinary loss this year was $60,000 and the partnership had no separately stated items. The deductible loss from the partnership reported on Stan's personal income tax return this year is

$20,000

$0


$60,000

$30,000

15. The Qualified Business Income Deduction applies to individuals who own an interest in a:

C Corporation

Both a Partnership and an S Corporation

A partnership

S Corporation

Thomas and Miles are equal partners in a​ partnership, whichuses the calendar year as its tax year. On September​ 1, this​year, Katie contributed​ $60,000 cash for a​ one-third interest inthe partnership. The partnership reports a​ $24,000 ordinary lossfor the tax year ending on December 31 of this year. The lossallocation to Katie​ (new partner) is

A. ​$0.
B. ​$2,667.
C. ​$4,000.
D.​$8,000.

A corporation has the following capital gains and losses duringthe current​ year: ​LTCG: ​$25,000 ​LTCL: ​15,000 ​STCG: 8,000​STCL: 4,000 The tax result to the corporation is
A. $10,000 NLTCG included in gross income and taxed at ordinary​rates; $4,000 NSTCG included in gross income and taxed at reducedrates.
B. ​$10,000 NLTCG is included in gross income and taxed at reduced​rates; and​ $4,000 NSTCG included in gross income and taxed atordinary rates.
C. $14,000 included in gross income and taxed at reducedrates.
D.$14,000 included in gross income and taxed at ordinary rates.

Stephanie owns a​ 25% interest in a qualifying S corporation.​Stephanie's basis in the stock was​ $40,000 at the end of the yearafter adjustments are made for capital contributions anddistributions​ (but not operating​ results). Stephanie also loanedthe S corporation​ $10,000 this year. The S corporation incurred a​$240,000 ordinary loss this year. Assume that next year the S​corporation's ordinary income is​ $160,000. ​ Stephanie's basis inher stock at the end of next year is A.$10,000.
B.$20,000.
C. $30,000.
D. ​$40,000.

Tara transfers land with a​ $690,000 adjusted basis and a​$700,000 FMV to a corporation in a Sec. 351 transfer. Immediatelyafter the​ transfer, Tara owns​ 100% of the corporationlongdash—stock with a FMV of​ $615,000. In​ addition, $85,000 ofliabilities are assumed by the corporation with respect to thetransfer. No other property is transferred.​ Tara's recognized gainon the transfer is
A. $15,000.
B. ​$0.
C. $5,000.
D. $10,000.

Jenkins Corporation has the following income and expense itemsduring the current​ year: Net loss from operations​ (beforedividend​ income) ​($ 25,000) Dividends from​ 25% ownedcorporations ​150,000 The allowed​ dividends-received deductionis
A. $125,000.
B. $100,000.
C. ​$150,000.
D. $120,000.

36. Which of the following statements regarding the basis ofmutual fund shares is TRUE?

a. If the mutual fund shares were purchased at various time andprices, the basis can be determined using the average basismethod.

b. The average basis of mutual fund shares can be determined usingthe single-category method.

c. The basis of mutual fund shares can be determined using thesecurities

d. All of these statements are true

37. Which of the following statements regarding the reporting ofsales of stock is true?

a. Short-term and long-term capital gains and losses are reportedon form 8949 and carried to Schedule D

b. Total capital gain is computed by combining net short- termgains and losses and net long-term gains and losses

c. Under certain circumstances, short-term and long-term capitalgains and losses may be aggregated and reported directly onSchedule D.

d. All of these statements are true,

38. In 2015, Mike Johnson had taxable income of 100,000. Thisamount included short-term capital losses of 1,000 and long-termcapital of 10,000. He had no other capital transactions in prioryears. What is Mike’s capital loss carryover to 2016?

a. 0

b. 1,000

c. 8,000

d. 11,000

39. Lelani purchases 200 shares of XYZ for 1,500 in 2013. XYZhad no earnings or profits in 2014 or 2015. Lelani received a 1,000return of capital in 2014 and a 1000 return of capital in 2015.What should be reported on her 2015 tax return.

a. 500 capital gain

b. 1000 dividend income

c. 1000 capital gain

d. 500 dividend income.

40.Which of the following statements regarding the basis ofmutual fund shares is FALSE? The basis of mutual fund shares can bedetermined by using the:

a. Double-category method

b. average basis

c. Specific share identification method

d. First-in first -out method

41. If the holding requirement for statu tory stock options isNOT met, the sale of the stock is considered a

a. Qualified sale

b. Ordinary disposition

c. Nonqualified sale

d. Disqualifying disposition

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in