C11-Chp-00-5-CPA Exam Questions-May-1993

C11-Chp-00-5-CPA Exam Questions-May-1993 - Page 1 of 3 How...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
32dee3c614ba17740c0a80878ffb147c8fe64e6b.doc Page 1 of 3 How much coverage would Acct 6120 get on a single CPA Exam? May, 1993. Chapter 2. Corporate Organization- Sec. 351 1 (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) $ 500 Computer equipment Adjusted basis 30,000 Fair market value 34,000 Cost 40,000 Immediately after the transfer, Stone owned 100% of the corporation's stock. The corporation's total basis for the transferred assets is: a. $30,000 b . $30,500 c . $34,500 d. $40,500 Chapter 2. Corporate Capital Structure Chapter 3. Corporate Income Tax 2 (CPAM93#41) In the current year, Acorn Inc. had the following items of income and expense: Sales $500,000 Cost of sales 250,000 Dividends received 25,000 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? a. $525,000 b. $505,000 c. $275,000 d. $250,000 3 (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 rent revenue? a. $50,000 b. $55,000 c. $60,000 d. $65,000 4 (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 $40,000 Commission paid to underwriter 25,000 Other stock issue costs 10,000 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? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

Page1 / 3

C11-Chp-00-5-CPA Exam Questions-May-1993 - Page 1 of 3 How...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online