FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: S Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

An S corporation is subject to the following tax.

A) Corporate income tax (§ 11) .
B) Built-in gains tax.
C) Alternative minimum tax.
D) None of the above apply to S corporations.

E) A) and C)
F) B) and C)

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

The Section 179 expense deduction is a Schedule K item on the Form 1120S.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Which transaction affects the Other Adjustments Account on an S corporation's Schedule M-2?

An S corporation cannot incur a tax liability at the corporation level.

A per-day,per-share allocation of flow-through S corporation items must be used,unless the shareholder disposes of the entire interest in the entity.

Which item does not appear on Schedule K of Form 1120S?

On January 1,Bobby and Alice own equally all of the stock of an electing S corporation called Prairie Dirt Delight.The dirt company has a $60,000 loss for a non-leap year.On the 200th day of the year,Bobby sells his one-half of the stock to his son,Saul.How much of the $60,000 loss,if any,is allocated to Bobby?

Only 51% of the shareholders must consent to an S election.

Which,if any,of the following can be eligible shareholders of an S corporation?

If an S corporation's beginning balance in OAA is zero,and the following transactions occur,what is the ending OAA balance?

A newly formed C corporation does not receive any tax benefit from an NOL incurred in its first tax year.

Claude Bergeron sold 1,000 shares of Ditta,Inc.,an S corporation,for $12,000.He had owned the stock for three years and had a stock basis of $111,000 in the shares.Claude is single,and he is the original owner of the § 1244 stock shares.Calculate the appropriate tax treatment.

Realized gain is recognized by an S corporation on its distribution of ____________________ property. appreciated

An S shareholder's stock basis can be reduced below zero.

Discuss the two methods of allocating tax-related items to S corporation shareholders.

An S corporation with substantial AEP records operating revenues of $410,000,taxable interest income of $390,000,operating expenses of $260,000,and deductions attributable to the interest of $150,000.The passive income penalty tax payable,if any,is:

An S corporation's separately stated items generally are identical to those separately stated by _________________________. partnerships

An S corporation must possess which of the following characteristics?

What method is used to allocate S corporation income or losses (unless an election to the contrary is made) ?

An S corporation cannot be a shareholder in another corporation.