Calculate corporate tax with long term capital gains
Alpha Corporation, a personal holding company, has the following results. Taxable income $200,000 Dividends-received deduction 30,000 Life insurance proceeds 10,000 Excess charitable contributions 10,000 Long-term capital gains 10,000 Federal income taxes 61 ...continues
During the year Ms. Malcom was supported by her 3 sons Alfred, Bill, Charles who provided the support in the following percentages: Alfred 8% Bill 45% Charles 47% Which of the brothers can claim his mother as a dependent assuming multiple support A alfred B Alfred or charles C Bill or charles D Alfred b ...continues
Mason, an accrual basis taxpayer, owns a six unit apartment complex for which he receives rent of 600 per month per unit. In 2005 five of the units were rented for the entire 12 month period. The sixth unit was occupied from January 1st through March 31. Upon vacating the unit, the tenant was refunded his security deposit of ...continues
40 True/False Accounting Questions
True/False Questions 1. Tax planning is the structuring of a transaction to reduce tax costs or increase tax savings in order to maximize its net present value. 2. In a Chapter 11 bankruptcy proceeding, the company is liquidated and all of its assets are sold in a dissolution and cessation of the company’s business act ...continues
20 Multiple Choice Accounting/Taxation Questions
41. Hemingway Corporation had net book income of $1,000,000 for the current year. In preparing its Schedule M-1 reconciliation for the year, the corporation’s tax account noted that Hemingway had the following: Federal tax expense=$250,000; Net capital losses=$50,000; Excess of tax depreciation [MACRS] over book depreciation = $ ...continues
Five multi-choice questions concern shareholder basis in an S-corporation.
1. Keeping track of shareholder basis in S-Corporation stock is the responsibility of a. the corporation b. the shareholder 2. Knowing the basis in the stock is important a. for limiting the amount of loss a shareholder can deduct b. for limiting the amount of gain a shareholder must report 3. A non-taxable distribu ...continues
10. Tropicana Partnership has three partners. Namoli Corporation, with a June 30 year-end, has a 40% interest. Vince and Lou, both individuals with calendar tax years, each have a 30% interest. Assuming Tropicana does not adopt a tax year according to its “natural business year,” what tax year must it adopt? A. December 31 B. ...continues
I need to find Allens' AMT adjustments. Don't we just take the expenses and contributions from his AGI?
Prepaid expenses for Pamello corporation: includible in taxable income or not?
Prepaid Expenses. Pamello, Inc., an engineering consulting firm, uses the cash method of accounting. Compute the amount of Pamello’s current year deductions for the following transactions: a. On November 1 of the current year, it entered into a lease to rent some office space for five years. The lease agreement states that ...continues
Tax reporting for independent contractor income
As an independent contractor for Abe & Murray’s Tax Service, I earned $6,000 during My work from 1/15 through 4/30. Regarding my income, please discuss the following items: What type of income is this? What expenses, if any, could be deducted from the income? What form is used to report income to me and the IRS? Wha ...continues
