T11F-Chp-13-2-HW-Sol

T11F-Chp-13-2-HW-Sol -...

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bf772db1adfc86d64c5a7ab5d5c6d229490559df.doc. Page 1 of 2 Name: Home work-Chapter 13. Assume the current tax year is calendar year 2011 unless otherwise indicated.) 1 Which of the following is not a feature of corporations? a. Shareholder Limited liability b. Limited life of the corporation. c. Centralized management B 2 Which of the following is an advantage of corporations? a. Ease of raising capital b. Tax-free fringe benefits for employees c. Both a. and b. C 3 The Concord Corporation has federal taxable income of $500,000 for the year. What is the federal income tax due for the year? a. $75,000 b. $150,000 c. $170,000 d. $195,000 e. Other Amount C 4 What is AB Corp’s income tax on taxable income of $825,000 if it is a personal service corp? a. $250,000 b. $280,500 c. $288,750 d. $301,000 e. $320,000 C 5 Marianna Corporation operates a theatrical costume shop. Taxable income for the current year is $1,000,000. What is Marianna's income tax liability? a. $ - 0 - b. $340,000 c. $373,250 d. $390,000 B 6 Maxwell Corporation operates a women's clothing boutique. Taxable income for the current year is $50,000. What is Maxwell's income tax liability? a. $ - 0 - b. $ 5,000 c. $ 7,500 d. $12,500 e. $17,000 C 7 Patrick and Patricia own Pats' Legal Services Corporation equally. The two owners are practicing attorneys employed by the corp. The only business activity of the entity is the provision of legal services. This year, the corporation's taxable income is $100,000. What is the corporation's income tax liability? a.
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This note was uploaded on 03/09/2012 for the course ACCT 4220 taught by Professor Burton during the Spring '08 term at UNC Charlotte.

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T11F-Chp-13-2-HW-Sol -...

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