Taxation of Partnerships and Corporations
Midterm Exam
Course Introduction
This course provides an in-depth examination of the federal income tax principles governing partnerships and corporations. Topics include the formation, operation, and dissolution of partnerships; the tax treatment of partners and partnerships; corporate formation and capital structure; corporate income taxation and distributions; and the tax consequences of mergers, acquisitions, and liquidations. Emphasis is placed on understanding the regulatory framework, tax compliance, and planning strategies to optimize tax outcomes. Students will engage with case studies and problem-solving exercises to develop practical skills for advising entities on tax matters.
Recommended Textbook
South Western Federal Taxation 2019 Comprehensive 42nd Edition by David M. Maloney
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28 Chapters
4038 Verified Questions
4038 Flashcards
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Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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211 Verified Questions
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Sample Questions
Q1) More than 25% gross income omission and statute of limitations
A)3 years from date return is filed
B)3 years from due date of return
C)20% of underpayment
D)5% per month (25% limit)
E)0.5% per month (25% limit)
F)Conducted at IRS office
G)Conducted at taxpayer's office
H)6 years
I)45-day grace period allowed to IRS
J)No statute of limitations (period remains open)
K)75% of underpayment
L)No correct match provided
Answer: H
Q2) Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.
A)True
B)False
Answer: True
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Chapter 2: Working with the Tax Law
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Sample Questions
Q1) Tax research involves which of the following procedures:
A) Identifying and refining the problem.
B) Locating the appropriate tax law sources.
C) Assessing the validity of the tax law sources.
D) Follow-up.
E) All of these.
Answer: E
Q2) The Golsen rule has been overturned by the U.S. Supreme Court.
A)True
B)False
Answer: False
Q3) The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).
A)True
B)False
Answer: True
Q4) Subchapter D refers to the "Corporate Distributions and Adjustments" section of the Internal Revenue Code.
A)True
B)False
Answer: False
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Chapter 3: Computing the Tax
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Sample Questions
Q1) Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions.
A)True
B)False
Answer: False
Q2) Benjamin, age 16, is claimed as a dependent by his parents. During 2018, he earned $850 at a car wash. Benjamin's standard deduction is $1,400 ($1,050 + $350).
A)True
B)False
Answer: False
Q3) A granddaughter, who lives with taxpayer, is 19 years old, earns $5,000, and is not a full-time student.
Answer: d
Q4) Lucas, age 17 and single, earns $6,000 during 2018. Lucas's parents cannot claim him as a dependent if he does not live with them.
A)True
B)False
Answer: True
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Chapter 4: Gross Income: Concepts and Inclusions
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Sample Questions
Q1) On December 1, 2018, Daniel, an accrual basis taxpayer, collects $12,000 rent for December 2018 and $12,000 for January 2019. Daniel must include the $24,000 in 2018 gross income.
A)True
B)False
Q2) The effects of a below-market loan for $100,000 made by a corporation to its chief executive officer as an enticement to get him to remain with the company are:
A) The corporation has imputed interest income and the employee is deemed to have received a gift.
B) The corporation has imputed interest income and dividends paid.
C) The employee has no income unless the funds are invested and produce investment income for the year.
D) The employee has imputed compensation income and the corporation has imputed interest income.
E) None of these.
Q3) Your client is considering transferring $25,000 from his savings account in a local bank paying 2% interest to a bank in Mexico City fully-insured bank paying 3%. What do you advise?
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Chapter 5: Gross Income: Exclusions
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Sample Questions
Q1) Matilda works for a company with 1,000 employees. The company has a hospitalization insurance plan that covers all employees. However, the employee must pay the first $3,000 of his or her medical expenses each year. Each year, the employer contributes $1,500 to each employee's health savings account (HSA). Matilda's employer made the contributions in 2017 and 2018, and the account earned $100 interest in 2018. At the end of 2018, Matilda withdrew $3,100 from the account to pay the deductible portion of her medical expenses for the year and other medical expenses not covered by the hospitalization insurance policy. As a result, Matilda must include in her 2018 gross income:
A) $0.
B) $100.
C) $1,600.
D) $3,100.
E) None of these.
Q2) John told his nephew, Steve, "if you maintain my house when I cannot, I will leave the house to you when I die." Steve maintained the house and when John died Steve inherited the house. The value of the residence can be excluded from Steve's gross income as an inheritance.
A)True
B)False
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Page 7
Chapter 6: Deductions and Losses: In General
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Sample Questions
Q1) In January, Lance sold stock with a cost basis of $26,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions?
A) Disallowed loss to James of $2,000? gain to Lance of $1,000.
B) Disallowed loss to Lance of $2,000? gain to James of $3,000.
C) Deductible loss to Lance of $2,000? gain to James of $3,000.
D) Disallowed loss to Lance of $2,000? gain to James of $1,000.
E) None of the above.
Q2) Which of the following are deductions for AGI?
A) Mortgage interest on a personal residence.
B) Property taxes on a personal residence.
C) Mortgage interest on a building used in a business.
D) Fines and penalties incurred in a trade or business.
E) None of the above.
Q3) If an activity involves horses, a profit in at least two of seven consecutive years meets the presumptive rule of § 183.
A)True
B)False
Q4) Briefly discuss the disallowance of deductions for capital expenditures.
Page 8
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Sample Questions
Q1) A bona fide debt cannot arise on a loan between father and son.
A)True
B)False
Q2) Beginning in 2018, a personal casualty loss deduction is only allowed for losses occurring in a Federally-declared disaster area.
A)True
B)False
Q3) In 2017, Amos had AGI of $50,000. Amos also had a diamond ring stolen which cost $20,000 and was worth $17,000 at the time of the theft. He itemized deductions on last year's tax return. In 2018, Amos recovered $17,000 from the insurance company. Therefore, he must include $11,900 in gross income on the tax return for the current year.
A)True
B)False
Q4) The amount of a business loss cannot exceed the amount of the taxpayer's NOL for the taxable year.
A)True
B)False
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Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
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Sample Questions
Q1) On June 1, 2018, Norm leases a taxi and places it in service. The lease payments are $1,000 per month. Assuming the dollar amount from the IRS table for such leases is $241, determine Norm's gross income inclusion amount.
A) $0
B) $241
C) $907
D) $1,687
E) None of the above
Q2) For real property, the ADS convention is the mid-month convention.
A)True
B)False
Q3) The factor for determining the cost recovery for eligible real estate under MACRS, in the year of disposition, is taken from the month of the disposition.
A)True
B)False
Q4) For personal property placed in service in 2018, the § 179 maximum deduction is limited to $1,000,000.
A)True
B)False
10
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Chapter 9: Deductions: Employee and
Self-Employed-Related
Expenses
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Sample Questions
Q1) A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.
A)True
B)False
Q2) Regarding tax favored retirement plans for employees and self-employed persons, comment on the following:
a. The exclusion versus deduction approaches as to contributions by participants.
b. Tax-free accumulation of earnings.
c. The deferral of income tax consequences.
d. Employee versus self-employed status.
Q3) Tax advantages of being self-employed (rather than being an employee) include:
A) The self-employment tax is lower than the Social Security tax.
B) The overall limitation (50%) on meals does not apply.
C) An office in the home deduction (for AGI) is available.
D) Job-related expenses are deductions for AGI.
E) Both c. and d. are advantages.
Q4) Sue uses her own tools.
Q5) Sue does not file a Schedule SE with her Form 1040.
Q6) Lynn determines when the services are to be performed.
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Sample Questions
Q1) Adrienne sustained serious facial injuries in a motorcycle accident. To restore her physical appearance, Adrienne had cosmetic surgery. She cannot deduct the cost of this procedure as a medical expense.
A)True
B)False
Q2) Linda is planning to buy Vicki's home. They want to keep the transaction simple, so the sales agreement will not apportion the property taxes that Vicki has already paid on the home. Comment on the tax implications for Linda and Vicki.
Q3) Upon the recommendation of a physician, Ed has a swimming pool installed at his residence because of a heart condition. If he is allowed to deduct all or part of the cost of the pool, Ed's increase in utility bills due to the operation of the pool qualifies as a medical expense.
A)True
B)False
Q4) Tom, whose MAGI is $40,000, paid $3,500 of interest on a qualified student loan in 2018. Tom is single. He may deduct the $3,500 interest as an itemized deduction.
A)True
B)False
Page 12
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Chapter 11: Investor Losses
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Sample Questions
Q1) Last year, Wanda gave her daughter a passive activity (adjusted basis of $80,000? fair market value of $160,000) with suspended losses of $20,000. In the current year, her daughter realizes income of $10,000 from the activity. What are the tax effects to Wanda and her daughter?
Q2) Kate dies owning a passive activity with an adjusted basis of $100,000. Its fair market value at that date is $130,000. Suspended losses relating to the property were $45,000.
A) The heir's adjusted basis is $130,000, and Kate's final deduction is $15,000.
B) The heir's adjusted basis is $130,000, and Kate's final deduction is $45,000.
C) The heir's adjusted basis is $100,000, and Kate's final deduction is $45,000.
D) The heir's adjusted basis is $175,000, and Kate has no final deduction.
E) None of the above.
Q3) Oriole Corporation has active income of $45,000 and a passive activity loss of $23,000 in the current year. Under an exception, Oriole can deduct the $23,000 loss if it is a personal service corporation.
A)True
B)False
Q4) Treatment of suspended credits when passive activity is sold at a loss.
Q5) Treatment of an installment sale of a passive activity.
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Chapter 12: Tax Credits and Payments
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Sample Questions
Q1) Qualified rehabilitation expenditures include the cost of acquiring the building, but not the cost of acquiring the land.
A)True
B)False
Q2) Discuss the treatment of unused general business credits.
Q3) Some (or all) of the tax credit for rehabilitation expenditures will have to be recaptured if the rehabilitated property is disposed of prematurely or if it ceases to be qualifying property.
A)True
B)False
Q4) In the event that overwithholding of FICA tax occurs because the taxpayer has more than one employer, the excess amount should be claimed as a credit on the Federal income tax return of the employee.
A)True
B)False
Q5) Julia is 30 years old, unmarried with a 9 year-old daughter, and has earnings during 2018 of $19,700. Does she qualify for the earned income credit? If so, calculate the amount of credit that is available to her.
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Chapter 13: Property Transactions: Determination of Gain or
Loss, Basis Considerations, and Nontaxable Exchanges
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Sample Questions
Q1) In computing the amount realized when the fair market value of the property received cannot be determined, the fair market value of the property surrendered may be used.
A)True
B)False
Q2) An involuntary conversion results from the destruction (complete or partial), theft, seizure, requisition or condemnation, or the sale or exchange under threat or imminence of requisition or condemnation of the taxpayer's property.
A)True
B)False
Q3) How is the donee's basis calculated for the gift of appreciated property for a gift made before 1977? Assume the donor pays gift tax.
Q4) The terms "realized gain" and "recognized gain" can be used interchangeably? they mean the same thing.
A)True
B)False
Q5) When a property transaction occurs, what four questions should be considered with respect to the sale or other disposition?
Page 15
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Chapter 14: Property Transactions: Capital Gains and
Losses, Section 1231, and Recapture Provisions
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Sample Questions
Q1) Which of the following real property could be subject to § 1250 depreciation recapture?
A) Property placed in service after 1986 on which straight-line depreciation was taken.
B) A building on which § 168(k) depreciation was taken.
C) Equipment on which accelerated depreciation was taken.
D) Land which was not depreciated.
E) a. and b.
Q2) A corporation has a $50,000 short-term capital loss for the year. The corporation has $1,200,000 of taxable income from other sources. The taxable income for the year is $1,200,000.
A)True
B)False
Q3) Which of the following assets held by a manufacturing business is a § 1231 asset?
A) Inventory.
B) Office furniture used in the business and held less than one year.
C) A factory building used in the business and held more than one year.
D) Accounts receivable.
E) All of the above.
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Chapter 15: Taxing Business Income
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Sample Questions
Q1) Tammy has $200,000 of QBI from her neighborhood clothing store (a sole proprietorship).Tammy's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property.Tammy's spouse earned $50,000 of wages as an employee, they earned $20,000 of interest income during the year, and will be filing jointly.What is their QBI deduction for 2018?
A) $-0-.
B) $40,000.
C) $50,000.
D) $54,000.
E) None of the above.
Q2) Ben owns and operates as a sole proprietorship, a machine repair shop that generates a profit of about $150,000 annually. The business pays wages of about $50,000 annually. The building and most of the equipment is leased so there is no qualified property. Ben files as single and claims the standard deduction. He has a large unrealized gain in bitcoin that he acquired in 2014 and is wondering when he should sell it and whether he should sell it all in one year or over a few years. Advise Ben as to how the sale of the bitcoin and its resulting capital gain can affect his QBI deduction.
Q3) What are some of the issues remaining unresolved with the QBI deduction?
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Chapter 16: Accounting Periods and Methods
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Sample Questions
Q1) Ivory Fast Delivery Company, an accrual basis taxpayer, frequently has claims for damages to property the company delivered. Often the claim is not filed until a month after the delivery. In the past, approximately 80% of the claims are paid by Ivory. In 2018, claims for $80,000 were filed. The company refused to pay $20,000 of the claims (because they were not valid), and paid $50,000. The remaining $10,000 in claims were processed and paid in January 2019. Also, in January 2019, claims for $8,000 were filed for deliveries made in 2018, and $6,000 was paid on these claims by March 15, 2019. Ivory has not elected to use the recurring item exception to economic performance. Under the allevents and economic performance tests, Ivory can accrue as an expense for 2018:
A) $68,000.
B) $66,000.
C) $60,000.
D) $50,000.
E) None of the above.
Q2) The ability of the CPA to timely prepare a tax return is a justification for the partnership's use of a particular tax year.
A)True
B)False
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Page 18
Chapter 17: Corporations: Introduction and Operating Rules
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Sample Questions
Q1) A corporation with $5 million or more in assets must file Schedule M-3 (instead of Schedule M-1).
A)True
B)False
Q2) In working with Schedule M-2 (analysis of unappropriated retained earnings per books) of Form 1120, which of the following is an addition to beginning retained earnings?
A) Cash dividends.
B) Net loss per books.
C) Property dividends.
D) Net income per books.
E) None of the above.
Q3) Schedule M-3 is similar to Schedule M-1 in that the form is designed to reconcile net income per books with taxable income. However, an objective of Schedule M-3 is more transparency between financial statements and tax returns than that provided by Schedule M-1.
A)True
B)False
Q4) Explain the rules regarding the accounting periods available to corporate taxpayers.
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19
Chapter 18: Corporations: Organization and Capital Structure
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Sample Questions
Q1) Jane and Walt form Yellow Corporation. Jane transfers equipment worth $950,000 (basis of $200,000) and cash of $50,000 to Yellow Corporation for 50% of its stock. Walt transfers a building and land worth $1,050,000 (basis of $400,000) for 50% of Yellow's stock and $50,000 in cash.
A) Jane recognizes no gain? Walt recognizes gain of $50,000.
B) Jane recognizes a gain of $50,000? Walt has no gain.
C) Neither Jane nor Walt recognizes gain.
D) Jane recognizes a gain of $750,000? Walt recognizes gain of $650,000.
E) None of the above.
Q2) The transfer of an installment obligation in a transaction qualifying under § 351 is a disposition of the obligation that causes gain to be recognized by the transferor.
A)True
B)False
Q3) When forming a corporation, a transferor-shareholder may choose to receive some corporate debt along with stock.
Identify some of the issues the transferor must consider when deciding whether debt should be a part of the transaction.
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Page 20
Chapter 19: Corporations: Distributions Not in Complete
Liquidation
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Sample Questions
Q1) Leon owns 750 shares of the 2,000 outstanding shares of Crane Corporation (E & P of $900,000). None of the other shareholders of Crane are related to Leon. Leon acquired his Crane shares ten years ago for $80,000. Crane has operated several trades or businesses for more than five years. In the current year, Crane sells the assets of one of those trades or businesses and distributes the proceeds from the asset sale to the shareholders in a pro rata stock redemption. In this transaction, Leon receives $250,000 in redemption of 300 shares of Crane. As a result of this transaction, Leon will recognize:
A) $218,000 dividend income.
B) $250,000 dividend income.
C) $218,000 long-term capital gain.
D) $250,000 long-term capital gain.
E) None of the above.
Q2) An increase in the LIFO recapture amount must be added to taxable income to determine E & P.
A)True
B)False
Q3) The dividends received deduction has no impact on E & P.
A)True
B)False
Page 21
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Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Q1) Pursuant to a complete liquidation, Lilac Corporation distributes the following assets to its unrelated shareholders: land held for three years as an investment (basis of $300,000, fair market value of $600,000), inventory (basis of $100,000, fair market value of $80,000), and marketable securities held for four years as an investment (basis of $200,000, fair market value of $240,000). What are the tax consequences to Lilac Corporation as a result of the liquidation?
A) Lilac Corporation would recognize no gain or loss on the liquidation.
B) Lilac Corporation would recognize a net capital gain of $320,000.
C) Lilac Corporation would recognize a net capital gain of $340,000 and an ordinary loss of $20,000.
D) Lilac Corporation would recognize a net capital gain of $340,000.
E) None of the above.
Q2) Discuss the role of letter rulings in corporate reorganizations.
Q3) A subsidiary is liquidated pursuant to § 332. The parent has held 100% of the stock in the subsidiary for the past ten years. The subsidiary has a net operating loss carryover of $400,000. The net operating loss does not carry over to the parent.
A)True
B)False
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Chapter 21: Partnerships
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Q1) Which of the following statements is correct regarding partnership or C corporation tax rates?
A) Partners pay tax on their distributive shares of income at 37%.
B) Partners pay a single tax on their distributive shares of income at the tax rate that applies to the partner's situation.
C) C corporations pay a single level of tax on corporate income at rates up to 35%.
D) C corporations pay tax at 21% and the shareholders pay a second tax of 37% when dividends are distributed.
Q2) In a limited liability partnership all members may participate in management and have personal liability for entity debts, except for malpractice committed by the other partners.
A)True
B)False
Q3) On the formation of a partnership, when might a "disguised sale" occur? How can this treatment be avoided?
Q4) General partnership
Q5) Partner's capital account
Q6) Organizational costs
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Chapter 22: S Corporations
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Q1) A service-type S corporation shareholder cannot claim the 20% QBI deduction.
A)True
B)False
Q2) Pepper, Inc., an S corporation, holds a $1 million balance in accumulated E&P. It reports sales revenues of $400,000, taxable interest of $380,000, operating expenses of $250,000, and deductions attributable to the interest income of $140,000. What is Pepper's passive income penalty tax payable, if any?
A) $380,000.
B) $116,842.
C) $24,537.
D) $0.
Q3) An S corporation shareholder's stock basis includes his or her direct investments plus a ratable share of any corporate liabilities.
A)True
B)False
Q4) Pepper, Inc., an S corporation in Norfolk, Virginia, has revenues of $400,000, taxable interest of $380,000, operating expenses of $250,000, and deductions attributable to the interest income of $140,000. Calculate any passive investme income penalty tax payable by this corporation.
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Chapter 23: Exempt Entities
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Q1) Form 990.
Q2) To be classified as a private foundation, the exempt status of an organization can be provided under either § 501(c) (1) or § 501(c)(3).
A)True
B)False
Q3) Agnes is aware that a feeder organization is subject to Federal income taxation. She wonders whether an organization otherwise taxable as a feeder organization can avoid such status if it remits less than 80% of its profits to the § 501(c)(3) entity.
Q4) Only certain exempt organizations must obtain IRS approval to obtain exempt status.
A)True
B)False
Q5) Medical, Inc., a § 501(c)(3) exempt organization, engages in an excess benefit transaction, such that the intermediate sanctions rules may apply. The amount of the excess benefit is $50,000. For the organization management, the participation in the excess benefit transaction was not willful and was due to reasonable cause. Calculate the amount of the excise tax (first-level tax) imposed under the intermediate sanctions provision.
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Page 25
Chapter 24: Multistate Corporate Taxation
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Q1) Fees paid to an accounting firm for the conduct of a financial audit.
Q2) State income tax expense.
Q3) Indicate for each transaction whether a sales (S) or use (U) applies, or whether the transaction is nontaxable (N).
Where the laws vary among various states, assume that the most common rules apply. All taxpayers are individuals.
a. A resident of State A purchases a computer in A.
b. A resident of State A purchases prescription medicine in A.
c. A resident of State B purchases a computer in A.
d. A church purchases office supplies in A.
e. A State A retailer purchases in B an item that will be in the inventory of its business.
f. A resident of State A purchases hardware from a retail home improvement store in a.
g. A business based in State A purchases vacant A land, to be held for a future expansion project.
h. A business based in State A purchases repair services from an A plumbing contractor.
Q4) Groceries purchased by an individual and taken home for meal preparation there.
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Page 26
Chapter 25: Taxation of International Transactions
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Q1) Which of the following statements is true, regarding the sourcing of dividend income?
A) Dividends are sourced based on the residence of the recipient.
B) Dividends from a U.S. corporation are U.S.-source based on the percentage of U.S.-source income earned by the U.S. payor.
C) Dividends from a U.S. corporation are U.S. source, without regard to where the U.S. corporation generated the E & P.
D) Dividends from a U.S. corporation are foreign-source based on the percentage of foreign-source income earned by the U.S. payor.
Q2) USCo, a U.S. corporation, purchases inventory from distributors within the U.S. and resells this inventory to customers outside the U.S., with title passing outside the U.S. Profit on the sale is $10,000. What is the sourcing of the USCo's inventory sales income?
A) $5,000 U.S. source and $5,000 foreign source.
B) $5,000 U.S. source and $5,000 sourced based on location of the pertinent manufacturing assets.
C) $10,000 U.S. source.
D) $10,000 foreign source.
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Chapter 26: Tax Practice and Ethics
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184 Verified Questions
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Sample Questions
Q1) Silvio, a cash basis, calendar year taxpayer, filed his income tax return 75 days after the due date. Silvio never extended his return, and with the return he paid the full amount of taxes that were due. What penalties will Silvio incur, and how much is the penalty if his additional tax is $5,000? Disregard any additional interest he must pay.
Q2) The Small Cases Division of the U.S. Tax Court is attractive to a taxpayer when:
A) $12,000 of tax, penalties, and interest is at stake.
B) $65,000 of tax, penalties, and interest is at stake.
C) Either a. or b.
D) Neither a. nor b.
Q3) Failure to sign the return.
Q4) The IRS can require that the taxpayer produce its financial accounting records, to determine if taxable income is computed correctly.
A)True
B)False
Q5) Comment on the AICPA's Statements on Standards for Tax Services. To whom do the standards apply? Are they binding or merely advisory?
Q6) Fraudulent failure to file a tax return.
Q7) Negligence.
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Chapter 27: The Federal Gift and Estate Taxes
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141 Verified Questions
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Sample Questions
Q1) The amount of the unified tax credit is the same for both transfers by gift and transfers by death.
A)True
B)False
Q2) Which, if any, of the following is a characteristic of the Federal estate tax?
A) A foreign tax credit is available.
B) A credit for tax on prior transfers may be available.
C) A charitable deduction is available.
D) All of the above.
Q3) Sidney dies and leaves property to his sister Giselle. Thirteen months later, Giselle dies. Giselle's estate can claim a full credit for any Federal estate taxes paid by Sidney's estate as to amounts passing to Giselle.
A)True
B)False
Q4) Meg gives her 18-year-old son money for his college tuition and living expenses (e.g., room and board).
Q5) The Federal transfer tax system includes three separate taxes.
A)True
B)False
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Chapter 28: Income Taxation of Trusts and Estates
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161 Verified Questions
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Sample Questions
Q1) The Stratford Estate incurs a $25,000 casualty loss in disposing of the real property of the decedent. The deduction is claimed against the Federal estate tax, unless by election it is claimed on the estate's income tax return.
A)True
B)False
Q2) The Gable Trust reports $20,000 business income and $10,000 exempt interest income, and it paid a $3,000 fiduciary fee. Gable's distributable net income includes $10,000 of net tax-exempt income.
A)True
B)False
Q3) The DaSinzi Estate has two equal income beneficiaries (Rollo and Luisa) and one remainder beneficiary (Coco).
The estate operates a business and generates cost recovery deductions. Which taxpayer(s), if any, can deduct these items,e.g., the deceased, the estate, Rollo, Luisa, or Coco?
Q4) Trusts can select any Federal income tax year-end.
A)True
B)False
Q5) A synonym for executor.
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