Vol 2 Add'l Test Bank Ch03

Vol 2 Add'l Test Bank Ch03 - Corporations: Special...

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Corporations: Special Situations 3-1 CHAPTER 3 CORPORATIONS: SPECIAL SITUATIONS EXAMINATION QUESTIONS 1. Green Corporation, a calendar year taxpayer, has alternative minimum taxable income (before the exemption amount) of $600,000 in 2009. Green Corporation’s tentative minimum tax for 2009 is a. $112,000. b. $120,000. c. $145,600. d. $156,000. e. None of the above. 2. Sage Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1,200,000 for 2009. The company is not a small corporation. If the regular corporate tax is $225,000, Sage’s alternative minimum tax for 2009 is a. $7,000. b. $15,000. c. $232,000. d. $240,000. e. None of the above. 3. Kelly Corporation, a calendar year taxpayer, has alternative minimum taxable income (before adjustment for adjusted current earnings) of $3 million for 2009. If Kelly Corporation's adjusted current earnings is $5 million, its tentative minimum tax for 2009 is a. $600,000. b. $892,000. c. $900,000. d. $1,000,000. e. None of the above.
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3-2 2010 Corporation Edition 4. A personal service corporation engaged in health care has $250,000 of accumulated earnings and profits at the end of 2008. During 2009, the corporation accumulated an additional $80,000 of after-tax earnings. The corporation at the end of 2009 can justify the retention of $290,000 for its reasonable needs of the business. The amount subject to
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Vol 2 Add'l Test Bank Ch03 - Corporations: Special...

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