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Accounting 6120. Corporate Taxation – Examination no. 2-Night Class
The University of North Carolina at Charlotte
Row In Class__________
You may use your code and regs book during the test.
You may also use up to 6 pages of notes-
front and back, as well as any outlines of code provided by the instructor in class or on the web page.
may not use your regular tax textbook when answering questions on this test. Avoid all appearances of
impropriety. If you see any sign of impropriety, please prepare an anonymous note and slide it under the
instructor's office door.
Please turn in both the test and the computer answer sheet.
Be sure to complete the
name and row lines
, your Student ID Number is entered as your "Identification
Your test number is entered in the "special codes" area, right justified.
Your test number is written
in red at the top of this test. The grade will be determined as follows: 100 points, less 4 points per incorrect
Mrs. Yee purchased stock in Jones Corporation in 2007 for $2,000.
, she received a distribution of $800, when Jones had no current or accumulated earnings and profits.
, Mrs. Yee received a $200 dividend, when Jones had current earnings and profits in excess of its
dividend distribution. There has been no other activity related to this stock.
What is Mrs. Yee's taxable dividend income
for 2009 and 2010, and what is her basis
in the Jones Corporation
stock as of December 31, 2010? (Sec. 301, 316, 317)
2009 Div. Income
2010 Div. Income
Stock Basis 12-31-2010
Davis Corporation, an accrual method taxpayer, had accumulated earnings and profits of $100,000 as of
December 31, 2008.
For the 2009 tax year, Davis' books and records reflect the following:
Cost of sales
Municipal bond interest
Meals and entertainment
Payroll taxes, and Miscellaneous Expense
Net Income before taxes
Davis does not have any carryover of losses, deductions or credits to the current year.
The company does not
qualify for any credits in the current year.
You may ignore the impact of state income taxes.
What is the amount of Davis Corporation's accumulated earnings and profits as of January 1, 2010?
Charlotte Corp, a calendar year taxpayer, reported in 2010:
Accumulated earnings and profits balance at 1-1-2010
Cash distribution to sole individual shareholder in 2010
Taxable income for 2010
Federal income taxes for 2010
Municipal bond interest earned in 2010