Regulation 3 PassMaster Questions

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Unformatted text preview: 5,000 $304,000 $301,000 CPA-02062 Explanation Choice "a" is correct. Eastern's alternative minimum taxable income before the ACE adjustment (and ignoring the exemption allowable) is $306,000: Taxable income Adjustment for regular tax accelerated depreciation Tax preference for private activity bond interest AMTI $300,000 1,000 5,000 $306,000 Choices "b", "c", and "d" are incorrect. Both the adjustment for accelerated depreciation and the preference for private activity bond interest are addbacks to taxable income to arrive at AMTI. CPA-02064 Type1 M/C A-D 24. CPA-02064 ARE Nov 95 #16 Corr Ans: D PM#34 R 3-01 Page 32 A civil fraud penalty can be imposed on a corporation that underpays tax by: a. b. c. d. Omitting income as a result of inadequate recordkeeping. Failing to report income it erroneously considered not to be part of corporate profits. Filing an incomplete return with an appended statement, making clear that the return is incomplete. Maintainin...
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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.

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