ACCT 4436-01 Exam 2 Student Spring 20.docx - ACCT 4436-01 Exam 2 Student 1 AACT 4436-01 Federal Tax 2 Exam#2 Spring 2020 Chapters 16-20 Date Grade Name

ACCT 4436-01 Exam 2 Student Spring 20.docx - ACCT 4436-01...

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ACCT 4436-01 Exam 2 Student 1 AACT 4436-01 Federal Tax 2 Exam #2 Spring 2020 Chapters 16-20 Name: Date: Grade: Examination instructions: 1) The examination is intended to test your knowledge of the topic covered in chapters 6 through 21 of the course text. 2) Answer all questions on the examination paper in the spaces provided. 3) Read the questions carefully. If you need to make any assumptions you must state them in order to receive credit. 4) This exam consists of the following: a) 05 True and False questions worth 1 point each for a total of 10 points. b) 10 Multiple Choice problems worth 5 points each for a total of 50 points. c) 4 Critical Thinking problems worth 10 points each for a total of 40 points ** 5). In order to receive partial credit on the problems you will need to show your calculations, True and False Multiple Choice 1. 1. 2. 2. 3. 3. 4. 4. 5. 5. 6. 6. 7. 7. 8. 8. 9. 9. 10. 10 11. 12. 13. 14. 15. Critical Thinking 1. 2. 3. 4. 5. 1
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ACCT 4436-01 Exam 2 Student 2 True and False 1 (Pt)1. A corporation generally recognizes gains and losses on sales of property during a complete liquidation.2. A Code Sec. 338 election is irrevocable.3. Code Sec. 332 does not apply to the liquidation of an insolvent subsidiary.4. A transaction whereby a corporation transfers all its assets and liabilities to a newly created corporation in exchange for the new corporation’s stock, whereupon the transferor’s shareholdersexchange their stock for all of the stock in the new corporation is a Type F reorganization.4. Paying dividends every year does not guarantee that the accumulated earnings tax will not be i45mposed.6. In a general partnership all the partners are classified as “general partners,” each of whom has unlimited liability for the debts of the partnership.7. As a general rule, when a person obtains an interest in partnership capital through rendition of services, ordinary income is recognized to the extent of the fair market value of the interest received.8. A partner’s interest in a partnership is a capital asset.9. When a partner acquires an interest in a partnership by purchase, the basis of the underlying
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  • Spring '17
  • Corporation, Limited partnership, Taxation in the United States, partner

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