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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


Business gifts are deductible up to a maximum deduction of:

$25 per recipient per year