Flashcards in Deck 11 Deck (20):
Rent revenue under accrual basis =
cash received + difference in rent receivables + nonrefundable rent deposit
When a corporation has an unused net capital loss that is carried back or carried forward to another tax year, it is treated as:
Short-term capital loss whether or not it was short-term when sustained
Minimum accumulated earnings credit =
When tentative minimum tax > regular tax, excess amount is:
Payable in addition to the regular tax (this is AMT)
A corporation will pay AMT to the extent that:
AMT exceeds regular tax
Recognized gain for a corporation =
The lesser of the realized gain or boot received
Amount realized for a corporation =
Greater of the FMV of an asset or amount of liability assumed by the shareholder
What type of entity is entitled to a Net Operating Loss (NOL) deduction?
Trust and estates
Schedule M-1 reports:
The reconciliation of income (loss) per books to income (loss) per the tax return;
Basis of nontaxable dividend =
Divide the basis of the old stock by the number of new shares
Dividends received deduction (20-80%)
Deduction of 80% of the dividends received
What entity has the most flexibility in choosing an accounting period?
A C corporation
The taxable amount of a dividend to a shareholder from a corporation's earnings and profits is:
the amount received in cash or the fair market value of the property received
The accrual basis method of accounting for tax purposes is required for the following:
1) the accounting for purchases and sales of inventory, 2) Tax shelters, 3) Certain farming corporations, 4) Greater than $5million average annual gross receipts for the three year period ending with the tax year
Affiliated group means that a common parent owns
1) 80% or more of the voting power of all outstanding stock and 2) 80% or more of the value of all outstanding stock of each corporation
Will there be a gain or loss to a corporation issuing stock in exchange for property for the issuance of stock?
Amortize operating expenses over how many months?
How are dividends reported as income?
Dividends come from current E&P first, then from accumulated E&p; if current E&P is positive and accumulated E&P is negative, distributions are dividends only to the extent of current E&P
C corporations are allowed a maximum charitable contribution deduction of _______ of taxable income computed before the following deductions:
10%; any charitable contribution, DRD, net operating loss carryback, net capital loss carryback, US production activities deduction