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2. Regarding the Accumulated Earnings Tax (AET), which of the following statements is true?
3. Orange, Inc., a calendar-year C corporation, has $800,000 of qualified production activities income (QPAI) and $950,000 of total taxable income in 2014. All of the QPAI was produced by Orange's manufacturing plant, which relies mainly on a temporary employment agency for its workforce, employing only two W-2 employees who in aggregate earned $140,000 in 2014. Orange also has an office in Mexico, which is unrelated to its domestic manufacturing plant and which employs one W-2 employee, who earned $75,000 in 2014. What amount of Domestic Production Activities Deduction may Orange claim on its 2014 corporate tax return? $70,000 4. Identify any item or items below which are added to Alternative Minimum Taxable Income (AMTI) inorder to compute the Adjusted Current Earnings (ACE) adjustment. III. Life insurance proceeds on the death of a key employee. II and III only.
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QPAI, PHC, DPGR, AET, DPAD, Taxation in the United States, C CORPORATION