Accounting Mid-term

Accounting Mid-term - Multiple Choice 1._C_ On December 31,...

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Multiple Choice 1.___C_____ On December 31, 2010, Peregrine Corporation, an accrual method, calendar year taxpayer, accrued a performance bonus of $100,000 to Charles, a cash basis, calendar year taxpayer. Charles is president and sole shareholder of the corporation. When can Peregrine deduct the bonus? a. In 2010, if the bonus was authorized by the Board of Directors and payment was made on or before March 15, 2011. b. In 2010, if payment was made on or before March 15, 2011. c. In 2011, if payment was made at any time during that year. d. In 2011, but only if payment was made on or before March 15, 2011. e. None of the above. 2.____E____ Juanita owns 45% of the stock in a C corporation that had a profit of $120,000 in 2010. Carlos owns a 45% interest in a partnership that had a profit of $120,000 during the year. The corporation distributed $20,000 to Juanita, and the partnership distributed $20,000 to Carlos. Which of the following statements relating to 2010 is incorrect ? a. Juanita must report $20,000 of income from the corporation. b. The corporation must pay corporate tax on $120,000 of income. c.
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This note was uploaded on 06/15/2011 for the course ACC 317 taught by Professor Green-connor during the Spring '09 term at Strayer.

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Accounting Mid-term - Multiple Choice 1._C_ On December 31,...

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