Choice b is incorrect the foreign tax credit does not

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Unformatted text preview: 94 #48 Corr Ans: A PM#54 R 3-01 Page 19 A corporation's penalty for underpaying federal estimated taxes is: a. b. c. d. Not deductible. Fully deductible in the year paid. Fully deductible if reasonable cause can be established for the underpayment. Partially deductible. CPA-02115 Explanation Choice "a" is correct. Rule: The penalty for underpayment of federal estimated taxes is not deductible. Choices "b", "c", and "d" are incorrect, per the above rule. CPA-02117 Type1 M/C A-D 40. CPA-02117 ARE Nov 94 #49 Corr Ans: A PM#55 R 3-01 Page 20 Which of the following credits is a combination of several tax credits to provide uniform rules for the current and carryback-carryover years? a. b. c. d. General business credit. Foreign tax credit. Minimum tax credit. Enhanced oil recovery credit. CPA-02117 Explanation Choice "a" is correct. The general business credit combines several nonrefundable tax credits and provides rules for their absorption...
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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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