Regulation 3 PassMaster Questions

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Unformatted text preview: NOLs are not allowed at the S corporation level. [Note: If the S corporation has a passthrough loss; however, an NOL may exist, for example, on the personal tax return of an individual shareholder.] Choice "d" is incorrect. Not-for-profit organizations are not taxable entities (although they may generate some taxable income, called unrelated business taxable income); therefore, they cannot generate net operating losses. CPA-05282 Type1 M/C A-D Corr Ans: D PM#106 R 3-01 73. CPA-05282 Released 2006 Page 33 Jans, an individual, owns 80% and 100% of the total value and voting power of A and B Corps., respectively, which in turn own the following (both value and voting power): 33 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 Ownership A Corp. B Corp. 80% 100% Property C Corp. D Corp. All companies are C corporations, except B Corp., which had elected S status since inception. Which of the following state...
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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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