R3

Question 0

No underpayment of estimated tax penalty will be imposed if:

Answer 0

The total tax for the years is less than $500, estimated tax payments for the year equal at least hundred percent of the tax shown on the return for that year.

Question 1

Personal holding companies income consists of what

Answer 1

Net rent, if less than 50% of ordinary gross income, taxable interest, royalties, and dividends

Question 2

To qualify as an exempt organization other than a church or an employees qualify pension profit-sharing trust, the applicant must:

Answer 2

File a written application with the Internal Revenue Service

Question 3

Taxable dividend income is paid out of the corporations:

Answer 3

Current or accumulated earnings and profits

Question 4

Are capital losses allowable deductions for corporations?

Answer 4

Not deductible

Question 5

How are C corporations net capital losses used?

Answer 5

Carried back 3 years forward 5 years

Question 6

The accrual basis method of accounting for tax purposes is required for the following:

Answer 6

1. The accounting for purchases and sales of inventory
2. Tax shelters
3. Certain farming corporations
4. C corporations with greater than $5 million avg gross receipts

Question 7

A dividend paid in property other than money is taxable to an individual taxpayer to the extent…

Answer 7

Of the properties fair market value, but not in excess of the current and accumulated earnings and profits of the distributing corporation

Question 8

Affiliated group

Answer 8

The common parent directly owns stock possessing at least 80% of the total voting power of at least one of the other corporations and having a value equal to at least 80% of the total value of the stock of the corporation