Question : 11. Brokers’ fees incurred in the issuance of a corporation’s stock : 1313621

 

 

11. Brokers’ fees incurred in the issuance of a corporation’s stock are considered organizational expenditures.

a. True

b. False

 

ANSWER:  False

RATIONALE:  Brokers’ fees incurred on the issuance of a corporation’s stock are not considered organizational expenditures.

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-03 – LO:11-03

 

 

12. To prevent triple taxation, a corporation is entitled to deduct 50 percent of the dividends received from other domestic corporations.

a. True

b. False

 

ANSWER:  False

RATIONALE:  To prevent triple taxation, corporations are allowed a deduction for 70 percent to a 100 percent of dividends received from domestic corporations, depending upon the ownership percentage in the corporation paying the dividend.

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-03 – LO:11-03

 

 

13. A regular corporation with excess charitable contributions may carry the excess forward to the 5 succeeding tax years.

a. True

b. False

 

ANSWER:  True

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-03 – LO:11-03

 

 

14. Corporations can elect to deduct up to $5,000 of organizational costs in the year they begin business, assuming their total organizational expenses do not exceed $50,000.

a. True

b. False

 

ANSWER:  True

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-03 – LO:11-03

 

 

15. A corporation must reconcile, to the IRS’s satisfaction, the differences between net income as shown on the company’s books and taxable income (before special deductions and net operating losses) as shown on the tax return.

a. True

b. False

 

ANSWER:  True

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-04 – LO:11-04

 

 

16. Schedule M-1 on Form 1120 shows the reconciliation of a corporation’s tax liability to the tax expense on the corporation’s books.

a. True

b. False

 

ANSWER:  False

RATIONALE:  Schedule M-1 on Form 1120 reconciles a corporation’s accounting income to its taxable income, computed before the net operating loss and special deductions.

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-04 – LO:11-04

 

 

17. An S corporation files a Form 1120S.

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

 

 

18. If the shareholders of an S corporation voluntarily revoke the corporation’s S corporation status in the sixth month of the tax year and the revocation does not specify a prospective revocation date, the corporation is a regular corporation for that tax year.

a. True

b. False

 

ANSWER:  False

RATIONALE:  If the shareholders of an S corporation voluntarily revoke the corporation’s S corporation status in the sixth month of the tax year and the revocation does not specify a prospective revocation date, the corporation will remain an S corporation until the end of the year. The earliest that the S corporation status can be terminated is the first day of the following year.

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-06 – LO:11-06

 

 

19. The income of an S corporation is computed in much the same manner as that of a partnership.

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

 

 

20. Charitable contributions made by an S corporation are not deductible by the corporation; therefore, the shareholders receive no tax benefit from the contributions as itemized deductions.

a. True

b. False

 

ANSWER:  False

RATIONALE:  Charitable contributions made by an S corporation are passed through to the shareholders and reported on the individual shareholders’ tax returns.

POINTS:  1

QUESTION TYPE:  True / False

HAS VARIABLES:  False

LEARNING OBJECTIVES:  ITF.WABG.15.LO:11-06 – LO:11-06

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more