Question 1

In the current year,Amber,Inc. ,a calendar C corporation,has income from operations of $200,000 and operating deductions of $225,000.Amber also had $30,000 of dividends from a 25% stock ownership in a domestic corporation.Which of the following statements is incorrect with respect to Amber's net operating loss deduction?

Accepted Answer

A)  The NOL is carried back 3 years and forward 10 years by Amber.
B)  Amber's NOL is $19,000.
C)  A dividends received deduction is allowed in computing Amber's NOL.
D)  Amber can elect to forgo the carryback period and only carry forward the NOL.
E)  None of the above.F) None of the above
G) B) and D)

Question 2

Which of the following statements is correct regarding the taxation of C corporations?

Accepted Answer

A)  Schedule M-2 is used to reconcile net income as computed for financial accounting purposes with taxable income reported on the corporation's tax return.
B)  The corporate return is filed on Form 1120S.
C)  Corporations can receive an automatic extension of nine months for filing the corporate return by filing Form 7004 by the due date for the return.
D)  A corporation with total assets of $7.5 million or more is required to file Schedule M-3.
E)  None of the above.F) B) and D)
G) All of the above

Question 3

Warbler Corporation,an accrual method regular corporation,was formed and began operations on March 1,2012.The following expenses were incurred during its first year of operations (March 1 - December 31,2012):

Accepted Answer

The answer of Warbler Corporation,an accrual method regular corporation,was formed...

Question 4

Hippo,Inc. ,a calendar year C corporation,manufactures golf gloves.For 2012,Hippo had taxable income (before DPAD) of $900,000,qualified domestic production activities income of $750,000,and W-2 wages related to qualified production activities income of $140,000.Hippo's domestic production activities deduction for 2012 is:

Accepted Answer

A)  $0.
B)  $12,600.
C)  $67,500.
D)  $70,000.
E)  None of the above.F) D) and E)
G) A) and B)

Question 5

During the current year,Owl Corporation (a C corporation) ,a retailer of children's apparel,made the following donations to qualified charitable organizations.  How much qualifies for the charitable contribution deduction?

Accepted Answer

A)  $63,000.
B)  $65,000.
C)  $90,500.
D)  $92,500.
E)  None of the above.F) A) and C)
G) A) and B)

Question 6

What is the purpose of Schedule M-3? Which corporations are required to file Schedule M-3?

Accepted Answer

Schedule M-3 was created,in part,in resp...

Question 7

Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions - subtractions = taxable income.Which of the following items is an addition on Schedule M-1?

Accepted Answer

A)  Premiums paid on key employee life insurance.
B)  Proceeds of life insurance paid on death of key employee.
C)  Charitable contributions carryover from previous year.
D)  Tax-exempt interest.
E)  None of the above.F) B) and E)
G) C) and E)

Question 8

Norma formed Hyacinth Enterprises,a proprietorship,in 2012.In its first year,Hyacinth had operating income of $400,000 and operating expenses of $240,000.In addition,Hyacinth had a long-term capital loss of $10,000.Norma,the proprietor of Hyacinth Enterprises,withdrew $75,000 from Hyacinth during the year.Assuming Norma has no other capital gains or losses,how does this information affect her taxable income for 2012?

Accepted Answer

A)  Increases Norma's taxable income by $157,000 ($160,000 ordinary business income - $3,000 long-term capital loss) .
B)  Increases Norma's taxable income by $150,000 ($160,000 ordinary business income - $10,000 long-term capital loss) .
C)  Increases Norma's taxable income by $75,000.
D)  Increases Norma's taxable income by $160,000.
E)  None of the above.F) C) and D)
G) A) and C)

Question 9

Almond Corporation,a calendar year C corporation,had taxable income of $900,000,$1.1 million,and $1.2 million for 2009,2010,and 2011,respectively.Almond's taxable income is $2 million for 2012.Compute the minimum estimated tax payments for 2012 for Almond Corporation.

Accepted Answer

A corporation that had taxable income of...

Question 10

What is the annual required estimated tax payment for a C corporation? What are the rules regarding payment of the estimated tax?

Accepted Answer

Estimated tax payments are required if t...

Question 11

The corporate marginal income tax rates range from 10% to 35%,while the individual marginal income tax rates range from 15% to 39%.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the purpose of Schedule M-1.Give two examples of an addition and two examples of a subtraction that could be reported on Schedule M-1.

Accepted Answer

Schedule M-1 is used to reconcile the di...

Question 13

For purposes of the estimated tax payment rules,a "large corporation" is defined as a corporation that had an average taxable income of $1 million or more in any of the three preceding years.

Accepted Answer

A) True 
 B)False

Exam 2: Corporations: Introduction and Operating Rules

Discuss the purpose of Schedule M-1.Give two examples of an addition and two examples of a subtraction that could be reported on Schedule M-1.

Correct Answer
verified
Schedule M-1 is used to reconcile the di...
View Answer

What is the annual required estimated tax payment for a C corporation? What are the rules regarding payment of the estimated tax?

Correct Answer
verified
Estimated tax payments are required if t...
View Answer

What is the purpose of Schedule M-3? Which corporations are required to file Schedule M-3?

Correct Answer
verified
Schedule M-3 was created,in part,in resp...
View Answer

Which of the following statements is correct regarding the taxation of C corporations?

Correct Answer
verified

Correct Answer
verified

For purposes of the estimated tax payment rules,a "large corporation" is defined as a corporation that had an average taxable income of $1 million or more in any of the three preceding years.

Correct Answer
verified

The corporate marginal income tax rates range from 10% to 35%,while the individual marginal income tax rates range from 15% to 39%.

Correct Answer
verified

Correct Answer
verified

During the current year,Owl Corporation (a C corporation) ,a retailer of children's apparel,made the following donations to qualified charitable organizations. How much qualifies for the charitable contribution deduction?

Correct Answer
verified

Almond Corporation,a calendar year C corporation,had taxable income of $900,000,$1.1 million,and $1.2 million for 2009,2010,and 2011,respectively.Almond's taxable income is $2 million for 2012.Compute the minimum estimated tax payments for 2012 for Almond Corporation.

Correct Answer
verified
A corporation that had taxable income of...
View Answer

Warbler Corporation,an accrual method regular corporation,was formed and began operations on March 1,2012.The following expenses were incurred during its first year of operations (March 1 - December 31,2012):

Correct Answer
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Correct Answer
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Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions - subtractions = taxable income.Which of the following items is an addition on Schedule M-1?

Correct Answer
verified

Exam 2: Corporations: Introduction and Operating Rules

Discuss the purpose of Schedule M-1.Give two examples of an addition and two examples of a subtraction that could be reported on Schedule M-1.

Correct AnswerverifiedSchedule M-1 is used to reconcile the di...View AnswerShow Answer

What is the annual required estimated tax payment for a C corporation? What are the rules regarding payment of the estimated tax?

Correct AnswerverifiedEstimated tax payments are required if t...View AnswerShow Answer

What is the purpose of Schedule M-3? Which corporations are required to file Schedule M-3?

Correct AnswerverifiedSchedule M-3 was created,in part,in resp...View AnswerShow Answer

Which of the following statements is correct regarding the taxation of C corporations?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For purposes of the estimated tax payment rules,a "large corporation" is defined as a corporation that had an average taxable income of $1 million or more in any of the three preceding years.

Correct AnswerverifiedShow Answer

The corporate marginal income tax rates range from 10% to 35%,while the individual marginal income tax rates range from 15% to 39%.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

During the current year,Owl Corporation (a C corporation) ,a retailer of children's apparel,made the following donations to qualified charitable organizations. How much qualifies for the charitable contribution deduction?

Correct AnswerverifiedShow Answer

Almond Corporation,a calendar year C corporation,had taxable income of $900,000,$1.1 million,and $1.2 million for 2009,2010,and 2011,respectively.Almond's taxable income is $2 million for 2012.Compute the minimum estimated tax payments for 2012 for Almond Corporation.

Correct AnswerverifiedA corporation that had taxable income of...View AnswerShow Answer

Warbler Corporation,an accrual method regular corporation,was formed and began operations on March 1,2012.The following expenses were incurred during its first year of operations (March 1 - December 31,2012):

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions - subtractions = taxable income.Which of the following items is an addition on Schedule M-1?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Schedule M-1 is used to reconcile the di...
View Answer

Correct Answer
verified
Estimated tax payments are required if t...
View Answer

Correct Answer
verified
Schedule M-3 was created,in part,in resp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A corporation that had taxable income of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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