Day 16 Flashcards
1
Q
In periods of rising prices LIFO results in what?
A
Higher cost of sales and lower taxable income compared to FIFO
MCQ-08202
2
Q
The DRD is affected by what?
A
By a requirement that the investor Corp must own the investees stock for a specific minimum holding period
MCQ-02227
3
Q
Corporations charitable contributions are limited to _____?
A
10% taxable income without regard to DRD, or NOL carry back
MCQ-02230
4
Q
DRD 100%?
A
- 100% of qualifying dividends received from members of the same affiliate group
- 100% of dividends received by a small business investment company
MCQ-02237
5
Q
Are premiums paid on key-man life insurance policies deductible?
A
Not for tax but yes for GAAP - this is reported on schedule M-1
MCQ-05301
6
Q
How is municipal bond interest income and expense treated for tax purposes?
A
Municipal bond interest income = non taxable
Interest expense to carry municipal bond = no deduction
MCQ-02039
