CH4_02_Deductions of a Corporation

Question 1

1. Which of the following are organizational costs?

A. Expenses of temporary directors; a survey of potential markets.
B. Advertisements for the opening of business; state incorporation fees.
C. Deductible research and experimental costs; set-up accounting services.
D. Legal services for drafting the charter; cost of organizational meetings.

Answer 1

D. Legal services for drafting the charter; cost of organizational meetings.

A. Expenses of temporary directors;
B. Advertisements for state incorporation fees.
C. Deductible set-up accounting services

a survey of potential markets.
the opening of business;
research and experimental costs;

Question 2

2. Which of the following cannot be amortized for tax purposes?

A. Incorporation costs.
B. Temporary directors’ fees.
C. Stock issuance costs.
D. Organizational meeting costs.

Answer 2

C. Stock issuance costs.

Question 3

3. Tapper Corp., an accrual-basis, calendar-year corporation, was organized on January 2, 2017. During 2017, revenue was exclusively from sales proceeds and interest income. The following information pertains to Tapper:

Taxable income before charitable contributions
for the year ended December 31, 2017 $ 500,000 Tapper’s matching contribution to employee-designated
qualified universities made during 2017 10,000 Board of directors’ authorized contribution to a qualified charity
(authorized December 1, 2017; made February 1, 2018) 30,000

What is the maximum allowable deduction that Tapper may take as a charitable contribution on its tax return for the year ended December 31, 2017?

A. $0
B. $10,000 C.$30,000 D.$40,000

Answer 3

500,000*0.1=50,000

10,000+30,000=40,000

fully deductible
D.$40,000

Question 4

4. Gero Corporation had operating income of $160,000 after deducting $10,000 for contributions to State University, but not including dividends of $2,000 received from nonaffiliated taxable domestic corporations (not from debt-financed portfolio stock). In computing the maximum allowable deduction for contributions, Gero should apply the percentage limitation to a base amount of

A. $172,000 B. $170,400 C.$170,000 D.$162,000

Answer 4

DRD는 고려 전
Dividend including 필요

160,000+10,000+2,000=172,000
A. $172,000

Question 5

5. In 2017, Rock Corporation made contributions totaling $20,000 to qualified charitable organizations. Due to the 10% limit, it could deduct only $15,000 of the contributions on its return. Which of the following statements is true regarding the excess contributions of $5,000?

A. Charitable contributions in excess of the limit may, subject to limitations, be carried back to each of the 3 prior years.
B. A contribution carryover, subject to limitations, is used before the deduction of contributions for the carryover year.
C. Charitable contributions in excess of the limit may, subject to limitations, be carried over to each of the following 5 years.
D. Charitable contributions in excess of the limit may, subject to limitations, be carried over to each of the following 20 years.

Answer 5

C. Charitable contributions in excess of the limit may, subject to limitations, be carried over to each of the following 5 years.

Question 6

6. In 2017, Cable Corp., a calendar-year C corporation, contributed $80,000 to a qualified charitable organization. Cable’s 2017 taxable income before the deduction for charitable contributions was $820,000 after a $40,000 dividends-received deduction. Cable also had carryover contributions of $10,000 from the prior year. In 2017, what amount can Cable deduct as charitable contributions?

A. $90,000 B. $86,000 C. $82,000 D. $80,000

Answer 6

40,000+820,000
=860,000
B. $86,000

전년도 10,000 중 4,000은 Carry forward 된다