Day 31 Flashcards
Define: Wash Sale
When a stock is sold within 30 days before or after the sale date
MCQ-14906
A Personal Holding Company’s income consists of:
Dividends received from unrelated parties
NOTE: Tax exempt income is not considered
MCQ-02246
How many years can you reapply for Chapter 7 bankruptcy?
8 years
NOTE: failure to keep books and records is grounds for discharge
MCQ-08080
What does it mean when the partnership has no unrealized receivables and no appreciated property?
The partnership has no “hot assets” and all distributions to the partner are Capital gain… NOT ORDINARY INCOME
MCQ-05536
What is the recovery period for office furniture?
7 years
MCQ-02226
What can a foreign entity file with regards to bankruptcy?
- Allowed to file an Ancillary proceeding under Chapter 15
- May also file proceedings under Chapter 7 & Chapter 11
MCQ-06810
What is the DRD for an unrelated Corp?
Means owning less than 20% and the DRD = 50%
MCQ-14676
Real property sold by a dealer is considered:
Inventory and results in Ordinary Income or Ordinary Loss
MCQ-05275
Under the Uniform Capitalization Rules what costs should be capitalized?
- Direct material
- Direct Labor
- Factory Overhead
Applicable Indirect Costs available for Capitalization:
1. Depreciation & Amortization
2. Insurance
3. Supervisory Wages
4. Utilities
5. Spoilage and Scrap
6. Design Expense
7. Some administrative costs such as Supplies, repacking costs, and Off-Site Storage
MCQ-05552
What is the equation for Casualty Loss?
Smaller Loss = a) Lost Cost/Adjusted Basis or b) Decrease in FMV
Taxpayer’s Loss
= Eligible Loss
= Deductible Loss
MCQ-04888
What gain is recognized in a nonliquidating distribution of property to a partner?
Gain is only recognized to the extent that cash distributed exceeds adjusted basis of the partners interest
MCQ-08467
What are the requirements for an involuntary petition to succeed?
Creditors must be owed individually or more than $18,600 in UNSECURED debt
MCQ-15639
