Deck 11 Flashcards
Rent revenue under accrual basis =
cash received + difference in rent receivables + nonrefundable rent deposit
When a corporation has an unused net capital loss that is carried back or carried forward to another tax year, it is treated as:
Short-term capital loss whether or not it was short-term when sustained
Minimum accumulated earnings credit =
$250,000
When tentative minimum tax > regular tax, excess amount is:
Payable in addition to the regular tax (this is AMT)
A corporation will pay AMT to the extent that:
AMT exceeds regular tax
Recognized gain for a corporation =
The lesser of the realized gain or boot received
Amount realized for a corporation =
Greater of the FMV of an asset or amount of liability assumed by the shareholder
What type of entity is entitled to a Net Operating Loss (NOL) deduction?
Trust and estates
Schedule M-1 reports:
The reconciliation of income (loss) per books to income (loss) per the tax return;
Basis of nontaxable dividend =
Divide the basis of the old stock by the number of new shares
Dividends received deduction (20-80%)
Deduction of 80% of the dividends received
What entity has the most flexibility in choosing an accounting period?
A C corporation
The taxable amount of a dividend to a shareholder from a corporation’s earnings and profits is:
the amount received in cash or the fair market value of the property received
The accrual basis method of accounting for tax purposes is required for the following:
1) the accounting for purchases and sales of inventory, 2) Tax shelters, 3) Certain farming corporations, 4) Greater than $5million average annual gross receipts for the three year period ending with the tax year
Affiliated group means that a common parent owns
1) 80% or more of the voting power of all outstanding stock and 2) 80% or more of the value of all outstanding stock of each corporation
Will there be a gain or loss to a corporation issuing stock in exchange for property for the issuance of stock?
No
Amortize operating expenses over how many months?
180
How are dividends reported as income?
Dividends come from current E&P first, then from accumulated E&p; if current E&P is positive and accumulated E&P is negative, distributions are dividends only to the extent of current E&P
C corporations are allowed a maximum charitable contribution deduction of _______ of taxable income computed before the following deductions:
10%; any charitable contribution, DRD, net operating loss carryback, net capital loss carryback, US production activities deduction
Business gifts are deductible up to a maximum deduction of:
$25 per recipient per year
