REGULATION SET 1 Flashcards
1
Q
Rule: general rule is that the accrual method of accounting will be required by…
A
tax shelters, large C corporations and manufacturers
2
Q
______ income taxes paid are not deductible for tax purposes
A
Federal
3
Q
Because the formation of a corporation is a nontaxable event…
A
no gain or loss is reported for the contributors
4
Q
A C corporation can deduct charitable contributions up to…
A
10% of its taxable income after adding back the dividends-received deduction
5
Q
A corporate charitable deduction that exceeds the limit for deduction in one year can be…
A
carried over to the succeeding five tax years. It cannot be carried back.
6
Q
A personal holding company…
A
- deducts federal income taxes in computing undistributed personal holding company income
- deducts net long-term capital gain less related federal income taxes in computing undistributed personal holding company income
