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Choices "a" and "c" are incorrect. Charitable contributions and foreign income taxes are separately
stated items that are passed through to the individual shareholders and are reported on their individual
returns in accordance with their percentage ownership of the corporation and are subject to any
limitations at that level.
Choice "b" is incorrect. Operating losses of an S corporation are passed through to the individual
shareholders each year and are deductible by the shareholders subject to the basis and "at risk"
limitations. Since the operating losses are passed through each year, S corporation net operating loss
carryovers do not exist. CPA-02260 Type1 M/C 129. CPA-02260 A-D May 91 II #43 Corr Ans: D PM#35 R 3-99 Page 43
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 Pursuant to a plan of corporate reorganization adopted in July 1990, Gow exchanged 500 shares of Lad
Corp. common stock that he had...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.
- Fall '10
- The Land