Question :
21. S corporations pay taxes at a higher rate than do : 1313622
21. S corporations pay taxes at a higher rate than do regular corporations.
a. True
b. False
ANSWER: False
RATIONALE: S corporations do not generally pay taxes. Each shareholder reports his or her share of corporate income, deduction, gain, and loss on their own personal tax returns.
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-06 – LO:11-06
22. If a corporation’s status as an S corporation is involuntarily terminated in the middle of the tax year, the corporation must file as an S corporation for the first half of the tax year and a regular corporation for the second half of the tax year.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-06 – LO:11-06
23. As a general rule, the transfer of property to a corporation in exchange for stock does not result in a taxable transaction.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-07 – LO:11-07
24. The accumulated earnings tax will not be imposed on accumulations that can be shown to be necessary to meet the reasonable needs of the business.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-08 – LO:11-08
25. The accumulated earnings tax is designed to prevent shareholders from avoiding the individual income tax.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-08 – LO:11-08
26. A corporation may be found subject to both the accumulated earnings tax and the personal holding company tax in the same year.
a. True
b. False
ANSWER: False
RATIONALE: A corporation cannot be subject to both the accumulated earnings tax and the personal holding company tax in the same year.
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-08 – LO:11-08
27. The original due date for a tax return of a corporation with a calendar tax year-end falls before the original due date of a return for an individual taxpayer with the same tax year.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-05 – LO:11-05
28. The corporate alternative minimum tax rate is 28 percent.
a. True
b. False
ANSWER: False
RATIONALE: The corporate alternative minimum tax rate is 20 percent.
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-09 – LO:11-09
29. Corporations may be subject to the alternative minimum tax.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-09 – LO:11-09
30. For 2014, what is the maximum tax rate for personal service corporations?
a. 25 percent
b. 28 percent
c. 34 percent
d. 35 percent
e. None of the above
ANSWER: d
POINTS: 1
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ITF.WABG.15.LO:11-01 – LO:11-01
