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Choices "a", "b", and "c" are incorrect, per the above rule. CPA-02144 Type1 M/C A-D Corr Ans: A PM#68 R 3-01 51. CPA-02144 PII Nov 93 #46 Page 42
A corporation was completely liquidated and dissolved during 19X2. The filing fees, professional fees,
and other expenditures incurred in connection with the liquidation and dissolution are:
d. Deductible in full by the dissolved corporation.
Deductible by the shareholders and not by the corporation.
Treated as capital losses by the corporation.
Not deductible either by the corporation or shareholders. CPA-02144
Choice "a" is correct. The corporation generally deducts its liquidation expenses (i.e., filing fees,
professional fees) on its final tax return.
Choice "b" is incorrect. These expenditures are deductible by the liquidating corporation, not its
Choice "c" is incorrect. These expenditures are ordinary deductions, not capital losses.
Choice "d" is incorrect. These ex...
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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