The exemption amount is phased out entirely when AMTI reaches A 40000 B 310000

The exemption amount is phased out entirely when amti

This preview shows page 15 - 18 out of 46 pages.

88. The exemption amount is phased out entirely when AMTI reaches: A. $40,000.B. $310,000.C. $1,000,000.D. $5,000,000.E. Some other amount.89. For purposes of the penalty tax on accumulated earnings under § 531, reasonable needs of the business does notinclude: 90. Cave Corporation, a calendar year taxpayer, has a beginning balance in accumulated E & P of $3.5 million and current earnings of $1 million. If Cave can justify accumulations for the needs of the business of $3.7 million, its accumulated earnings credit for ATI purposes is:
Background image
91. Maroon Corporation incurred the following taxes for the year 2012:Regular tax liability$187,000Tentative minimum tax156,000Personal holding company tax63,000Accumulated earnings tax65,400Maroon Corporation’s total tax liability is:92. What amount of accumulated earnings of a service type corporation is considered within the reasonable needs of a business without the corporation having to show a bona fide business reason for the accumulation? A. $150,000 or less.B. $200,000 or less.C. $250,000 or less.D. $300,000 or less.E. None of the above.93. Blue, Inc., a calendar year closely held corporation, is not a PHC. If the company reports the following items, the accumulated taxable income is:Taxable income$200,000Long-term capital gain (net of tax)18,300Federal income tax on LTCG11,700Dividends received deduction18,000Accumulated earnings credit–0–Federal income taxes65,150Dividends paid80,00094. Which of the following is always personal holding company income?
Background image
95. Chase Corporation manufactures and sells birdhouses and feeders. The company also sells similar items that are imported from foreign countries. During the current year, Chase had a profit of $600,000 from its own products but a loss of $70,000 from the imported goods.a.What is Chase’s QPAI?b.What is Chase’s DPAD in 2012?96. Emerald, Inc. engages in production activities that generate QPAI of $560,000 and taxable income (without taking into account the DPAD and NOL) of $800,000 in 2012. The company also has an NOL carryover to 2012 of $600,000 and qualified W-2 wages of $350,000. Calculate any DPAD. 97. In each of the following independent situations, determine the DPAD for 2012 for the corporation involved.TaxpayerQPAITIW-2 wagesa.Siskin$400,000$500,000 $ 30,000 b.Ibis800,000700,000130,000c.Scamp700,000900,000200,000d.Pipits900,000900,000*280,000
Background image
Image of page 18

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture