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C12-Chp-03-2-Homework-Prb-AMT-PHC-AET-2012

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0b90948b8ec99222b14d0a5ffe6669c219a8c181.doc. Page 1 of 5 First Name______________________________Last Name: ______________________________________ Home work-Chapter 3. On the right side of the page enter letter of the best answer for each question. Enter your answers on the answer sheet in file: C12-Chp-03-2-HW-Sol-Corp-Tax-Excel-2012-Answer Sheet. You may enter “e” if you believe no alternative given is correct. Turn in solutions at the start of class. (29 @ 3 Pts. = 87, plus 15 pts = 102 possible) Introduction – Combinations of Questions 1 Which of the following taxes is not reported on a schedule attached to the annual income tax return? a. Alternative Minimum Tax b. Accumulated Earnings Tax c. Personal Holding Company Tax 2 [Pg. 26] [ §533] Which of these taxes is affected by the motives of management for its decisions regarding dividend policy? a. Alternative Minimum Tax b. Accumulated Earnings Tax c. Personal Holding Company Tax d. All of these e. None of these 3 [Pg. 27] [ §541, 543] Sue owned stocks that pay dividends of $100,000 per year. Sue put those stocks in a newly organized SueCorp owned by Sue. This was done to reduce the tax burden on the dividends. SueCorp does not pay dividends. SueCorp reported the following Dividends from domestic taxable corporations $100,000 Dividends received deduction (Owns 25% of stock) -80,000 Taxable Income 20,000 Corporate tax rate 15% Corporate income tax rate $3,000 The corporation is subject to: a. Accumulated earnings tax b. Personal holding company tax 4 [Pg. 26] [ §541, 543] Alston Corp. has three stockholders and derives all of its income from investments in stock and securities. Alston regularly distributes 51% of its taxable income as dividends to its stockholders. Alston is a (an) a. Corporation subject to the accumulated earnings tax b. Regulated investment company. c. Exempt organization d. Personal holding company (CPA-N-1984) 5 [Pg. 26] [ §533, 547] When you determine (or the IRS determines) that a tax is due, you often wish you could do something to avoid having to pay that tax. Which of the following is least likely to be avoided after the tax liability is computed? a. Alternative Minimum Tax b. Accumulated Earnings Tax c. Personal Holding Company Tax Calculate the Qualified Domestic Production Activity Deduction. 6 [Pg. 3+] [ §199] A Company sells furniture through Walmart The Company manufactures furniture in the U.S. & imports some furniture. Total Operations ($000) Makes Imports Total Sales $2,500 $1,500 $4,000 Cost of Sales (1,000) (750) (1,750) Gross Margin $1,500 $750 $2,250 Other expenses (400) Net Income $1,850 What is the qualified domestic production activity deduction for 2010 (in $thousands) for the company above assuming you use the simplified method and wages are not a limiting factor?
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