Day 15

Question 1

Corporations that are not small banks and thrift stores must use what method pertaining to bad debts?

Answer 1

Direct charge off

MCQ-02239

Question 2

When are expenses deducted by an accrual basis corporation paid to a shareholder that owns 50% or more and it’s a cash basis taxpayer?

Answer 2

When expenses are paid

MCQ-08703

Question 3

What is the limitation on charitable contributions for a C Corp?

Answer 3

Add back DRD and 10% taxable income

MCQ-02048

Question 4

Premiums paid for life insurance on an officers life where the corporation is the beneficiary is _________?

Answer 4

Not deductible

MCQ-02205

Question 5

Using LIFO, how is inventory on hand at year end treated?

Answer 5

Treated and composed of the earliest acquired goods

MCQ-08202

Question 6

What type of expense is subject to the Unified Capitalization Roles of Code Sec. 263A?

Answer 6

Quality control

MCQ-04081