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Unformatted text preview: 1 In 2010, T Corporation changed its tax year from ending each September 30th to ending each December 31st. The corporation earned $25,000 during the period October 1, 2010 through December 31, 2010. The tax on the annualized income for the short period will be greater than the tax on $25,000 when the tax rates are progressive. Choose one answer. a. True Correct Incorrect. Question 2 Trent died on June 30, 2010. His gross income earned from January 1 through June 30, 2010 was $50,000. Trent's gross income must be annualized to $100,000 and then the tax on this portion of his taxable income on his final return is one-half of the tax calculated on $100,000. Choose one answer. b. False Correct Question 3 A C corporation began business on June 15, 2007. The corporation may use a tax year ending June 14, 2007. Choose one answer. b. False Correct Question 4 The system of required tax payments applicable to fiscal year S corporations and partnerships: Choose one answer. d. All of the above. Correct Question 1 Snow Corporation began business on October 1, 2007. If the corporation elects to use a calendar year, the corporation must annualize its income for the period October 1, 2007 through December 31, 2007. Choose one answer. b. False Correct Question 2 A partnership tax year must be the same as the tax year of all of its partners. Choose one answer. b. False Correct Question 3 In 2003, a medical doctor who incorporated his practice elected a fiscal year ending September 30th. During the fiscal year ended September 30, 2010, he received a salary of $180,000. During the period from October 1, 2010 to December 31, 2010 the corporation paid the doctor a total salary of $40,000, and paid him $200,000 of salary in the following 9 months. The corporation's salary deduction for the fiscal year ending September 30, 2011 is $240,000. Choose one answer. b. False Correct Correct. Question 4 Which of the following statements regarding a 52-53 week tax year is correct? Choose one answer. b. The year-end must be the same day of the week in all years. Correct 2 The Seagull Partnership has three equal partners. Partner A's tax year ends June 30th, and Partners B and C use a calendar year. If the partnership uses the calendar year to report its income, Partner A must change its tax year to a calendar year. Choose one answer. b. False Correct Question 3 A partnership tax year must be the same as the tax year of all of its partners. Choose one answer. b. False Correct Question 2 For purposes of determining the partnership's tax year, there may be more than one principal partner. Choose one answer. a. True Correct Question 4 In regard to choosing a tax year for a retail business owned by individuals, which form of business provides the greater number of options in regard to the tax year?...
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- Spring '11