Day 11

Question 1

MCQ-01726

Question 2

What is considered a related party with regards to a C Corp?

Answer 2

Anyone owning 50% or more

MCQ-04080

Question 3

Define arm’s length price?

Answer 3

FMV

MCQ-05523

Question 4

MACRS 20 year property:

Answer 4

Farm buildings and municipal sewers

MCQ-02195

Question 5

MACRS 5 year property:

Answer 5

Automobiles, light trucks, computers, typewriters, copiers, duplicating machines, etc…

MCQ-05549

Question 6

Define: Mid-Quarter convention

Answer 6

When 40% of property is placed into service in the last quarter of the year

MCQ-02044

Question 7

Half Year and Mid-Quarter convention relate to what type of property?

Answer 7

Machinery and Equipment

MCQ-02058

Question 8

Mid-Month convention relate to what type of property?

Answer 8

Land and Buildings

MCQ-02058

Question 9

Intangible goods such as trademarks, goodwill, licenses, franchises, and covenants not to complete for 5 years are amortized at _____ years?

Answer 9

15 years regardless of covenant length

MCQ-14662

Question 10

Under MACRS, salvage value is _______ for purposes of computing the deduction.

Answer 10

Ignored

MCQ-02195

Question 11

What entity has the most flexibility when choosing an accounting period?

Answer 11

C Corporation

MCQ-05976

Question 12

What is an S Corps accounting period?

Answer 12

Calendar year, unless it has a valid business purpose for a different taxable year

MCQ-05976

Question 13

The Entity’s basis of property received is the greater of:

Answer 13

1. Adjusted Net Book value of shareholder PLUS any gain recognized by the shareholder

OR

2. Debt assumed by the Corporation

MCQ-06003

Question 14

MCQ-06518