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Unformatted text preview: Corporate Taxation Q.1 No penalty will be imposed on a corporation for underpayment of estimated tax for a particular year if A. The tax for the year is less than $500 B. Estimated tax payments during the year equaled at least 93% of last years tax C. The corporation is a personal holding company D. The alternative minimum tax is at least $1,000 Q.2 What would be the alternative minimum tax liability for a corporation that is not exempt from the alternative minimum tax and whose tax return reflected the following for 2007? Alternative minimum taxable income (after exemption) Is $110,000 AMT foreign tax credit is $5,000 Regular federal income tax (net of foreign tax credit) is $4,500 A. $9,000 B. $12,500 C. $17,000 D. None of the above Q.3 On October 1, 2007, CPACorporation sold 4,000 shares of its $10 par value treasury stock for $60,000. These shares were acquired by CPA on January 2, 2007, for $50,000. For 2007, CPA should report A. LTCG of $10,000 B. STCG of $10,000 C. LTCG of $20,000 D. None of the above Q.4 CMA Corp., a calendar-year C corporation, realized taxable income of $36,000 from its regular business operations for calendar year 2007. In addition, CMA had the following capital gains and losses during 2007 Short-term capital gain $ 8,500 Short-term capital loss (4,000)...
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- Spring '09