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How much coverage would Acct 6120 get on a single CPA Exam? May, 1993.
Corporate Organization- Sec. 351
(CPAM93#53) Stone, a cash basis taxpayer, incorporated her CPA practice.
No liabilities were transferred. The following assets were transferred to the corporation:
Cash (checking account)
Fair market value
Immediately after the transfer, Stone owned 100% of the corporation's stock.
The corporation's total basis for the transferred assets is:
Corporate Capital Structure
Chapter 3. Corporate Income Tax
(CPAM93#41) In the current year, Acorn Inc. had the following items of income and expense:
Cost of sales
The dividends were received from a corporation of which Acorn owns 30%.
In Acorn's corporate income tax return, what amount should be reported as income before special deductions?
(CPAM93#42) Ace Rentals Inc., an accrual-basis taxpayer, reported rent receivable of $35,000 and $25,000 in
its 2004 and 2003 balance sheets, respectively. During 2004, Ace received $50,000 in rent payments and $5,000
in nonrefundable rent deposits. In Ace's 2004 corporate income tax return, what amount should Ace include as
(CPAM93#44) Brown Corp., a calendar-year taxpayer, was organized and actively began operations on July 1,
2005, and incurred the following costs:
Legal fees to obtain corporate charter
Commission paid to underwriter
Other stock issue costs
Brown wishes to amortize its organizational costs over the shortest period allowed for tax purposes.
In 2005, what amount should Brown deduct for the amortization of organizational expenses?