Final Taxes test -...

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The "double taxation" of corporate income refers to the fact that corporate income is taxed at both  the entity-level and the shareholder-level. Question 1 options:  a) True b) False Save  Question 2  (6 points)     A distribution from a corporation to a shareholder will always be treated as a dividend for tax  purposes. Question 2 options:  a) True b) False Save  Question 3  (6 points)     A corporation's "earnings and profits" account is equal to the company's "retained earnings" account  on its balance sheet. Question 3 options:  a) True b) False Save  Question 4  (6 points)     A distribution from a corporation to a shareholder will only be treated as a dividend for tax purposes  if the distribution is paid out of current or accumulated earnings and profits. Question 4 options:  a) True b) False Save  Question 5  (6 points)    
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The term "earnings and profits" is well-defined in the Internal Revenue Code. Question 5 options:  a) True b) False Save  Question 6  (6 points)     Income earned by flow-through entities is usually taxed once at the entity level. Question 6 options:  a) True b) False Save  Question 7  (6 points)     Partnerships tax rules incorporate both the entity and aggregate approaches. Question 7 options:  a) True b) False Save  Question 8  (6 points)     The term "outside basis" refers to the partnership's basis in its assets; whereas, the term "inside  basis" refers an individual partner's basis in her partnership interest. Question 8 options:  a) True b) False Save  Question 9  (6 points)    
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A partnership can elect to amortize organization and startup costs; however, syndication costs are  not deductible. Question 9 options:  a) True b) False Save  Question 10  (6 points)     Nonrecourse debt is generally allocated according to the profit-sharing ratios of the partnership. Question 10 options:  a) True b) False Save  Question 11  (6 points)     A partner's debt relief from the sale of a partnership interest will decrease his outside basis. Question 11 options:  a) True b) False Save  Question 12  (6 points)     In the sale of a partnership interest, a selling partner will recognize ordinary income (rather than  capital gain) when the partnership assets include cash and land held for 5 years as an investment. Question 12 options:  a) True b) False Save  Question 13  (6 points)     Hot assets include assets except cash, capital assets and §1231 assets.
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Question 13 options:  a) True b) False Save  Question 14  (6 points)     Operating distributions terminate a partner's interest in the partnership. Question 14 options: 
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This note was uploaded on 10/07/2011 for the course ECON 101 taught by Professor Ramiz during the Spring '11 term at Abilene Christian University.

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Final Taxes test -...

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