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Unformatted text preview: h are not a part
of adjusted ordinary gross income.
Rule: A corporation is a personal holding company if 60% of adjusted ordinary gross income consists of:
Royalties, but not mineral, oil, gas or copyright royalties
Net rent, if less than 50% of ordinary gross income. Choices "a", "c", and "d" are incorrect, per the above rule. CPA-02248 Type1 M/C 123. CPA-02248 A-D R98 #10 Corr Ans: D PM#29 R 3-99 Page 17 Haze Corp., an accrual-basis, calendar-year C corporation, began business on January 1, 2004, and
incurred the following costs:
Underwriting fees to issue corporate stock
Legal fees to draft the corporate charter 41,000
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 Haze elected to amortize its organization costs. What was the maximum amount of the costs that Haze
could deduct for tax purposes on its 2004 income tax return?
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