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Flashcards in 1 REG Surgent Deck (20)
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1
Q

Max. deductible gift am’t of a corp?

A

$25 per individual

2
Q

Committees involved in writing tax law:

A
  1. House Ways & Means Committee Report
  2. Senate Finance Committee Report
  3. Joint Conference Committee Report
3
Q

Contract elements:

A
  1. Agreement
  2. Consideration
  3. Legal purpose
  4. Competent parties
4
Q

Start up cost amortization:

A

1st yr up to $5000 - org. expenditures > $50k
+ Amortized am’t from 1st month of business
over 15 years

5
Q

AMT

A

state tax refund - exclusion item

6
Q

Costs capitalized to inventory:

A
  1. DM
  2. DL - payroll
  3. Direct production
  4. Indirect production
  5. Service costs - recruiting & securities services

NOT MARKETING

7
Q

Business Judgment Rule

A
Protect directors from s/h's lawsuits
Applies when:
1. the board makes an informed decision
2. there is no conflict of interest
3. there is a rational basis for the board's decision
8
Q

S-Corp basis

A
  • can never be
9
Q

Workers’ Comp Statute covers:

A
  1. occupational disease

2. employment - aggravated preexisting disease

10
Q

Tax Estimates:

A
Income of $150k or less:
- 90% CY tax liab., timely pmts.
- 100% PY tax liab.
Income >$150k
- 90% CY tax liab., timely pmts.
- 110% PY tax liab.
11
Q

SM, LLC

A

disregarded as separate from owner; therefore, can file as a corp. or a disregarded entity

12
Q

When a secured creditor repossesses & sells collateral, the first obligations to be paid are:

A

the expenses of the sale

13
Q

Draft

A

a 3 party instrument in which one person (the “drawer”) orders a second person (the “drawee”) to pay a sum certain of money to a third person (the “payee”)

14
Q

Post-dated check

A

bears only one date

15
Q

Trade acceptance

A

similar to draft, except “drawer” is also “payee”

16
Q

Promissory note

A

two-party instrument & involves a promise (rather than an order) to pay

17
Q

Federal Fair Labor Standards Act regulates:

A
  • minimum wage
  • overtime
  • # of hrs in the workweek (through the overtime requirement)
18
Q

Control groups of a corp

A

To be a member of an affiliated group:

- must hold at least 80% of corp stock

19
Q

Taxable interest income:

A

all interest rec’d is taxable unless exempt by law.
Exempt:
- interest on all state & local bonds (“municipal bond interest”)

20
Q

Trust accounting income

A

Amount an income beneficiary is entitled to receive from the trust; includes both taxable & nontaxable items of income