Reg 3

Question 1

Charitable contribution for C corps is limited to __% before ___________-received deduction and the __________ deductions

Answer 1

10; DIVIDENDS; CHARITABLE

Question 2

DRD limitation for ownership in a stock ranging from 0%-20% is ___%, 20%-<80% is ___% and 80% or more is ____%

Answer 2

50, 65, 100

Question 3

Business gifts are deductible up to a maximum deduction of $___ per recipient per year. In calculating the deduction take the lesser of the cost of the product and the $___ limitation multiplied but the _________

Answer 3

25; 25; QUANTITY

Question 4

C corp businesses with greater than 30 million in average gross receipts must use the accrual method of tax accounting (T or F)

Answer 4

TRUE

Question 5

Rent revenue under the accrual method of accounting = ______ received + __________ in __________ ___________ + non refundable _______ deposits

Answer 5

CASH; INCREASE; ACCOUNTS RECEIVABLE; RENT

Question 6

Charitable contribution threshold for corps should be applied before deduction of any ____________contributions, ____________ received deduction or capital loss carry backs.

Answer 6

CHARITABLE; DIVIDENDS

Question 7

charitable deduction of a corporation is limited to ____% of adjusted ________ _________

Answer 7

10; TAXABLE INCOME

Question 8

State _________ tax refunds are included in taxable income

Answer 8

FRANCHISE

Question 9

A corporation that has no taxable income in the prior year can only use the annualized method to calculate ____________ ___ __________

Answer 9

ESTIMATED TAX LIABILITY

Question 10

Personal holding company income test requires the company’s income for a given taxable year to be at least ___% of adjusted ordinary gross income

Answer 10

60

Question 11

A personal holding company regularly distributes ___% of it’s taxable income as ____________ to it’s stockholders

Answer 11

51; DIVIDEND

Question 12

S corp limitation on passive income is ___% before it loses it’s __ ___________ ________

Answer 12

25; S CORPORATION; STATUS

Question 13

For a C corp to turn to a S corp, all shareholders must give their

Answer 13

CONSENT

Question 14

S corporation status may be revoked if holders of more than ___% of the total number of issued and outstanding shares consent and there is no distinction between __________ and ____________

Answer 14

50; VOTING; NONVOTING

Question 15

For an S corporation, interest income, dividend income, charitable contributions and section 179 deduction are all NOT separately stated items (T or F).

Answer 15

FALSE, they all are separately stated items and are not included in the calculation of ordinary taxable income

Question 16

Health insurance premiums are deductible by S corp only when they are for ___________ employees or if the owner owns less than __%

Answer 16

NON-OWNER; 2

Question 17

An S corporation purchasing 100 stock in a C corporation in aug of a year will terminate S corporation status of the S corporation jan 1 of the next year ( T or F)

Answer 17

FALSE; an S corporation may own stock in an C corporation but may not be owned by a c corporation