91%(111)101 out of 111 people found this document helpful
This preview shows page 8 - 11 out of 28 pages.
41. Future, Inc. reported the following results for the year: Net income per books $110,000 Federal income taxes 36,170 Life insurance proceeds on key employee15,000 Tax-exempt interest income 13,000 Net capital loss 25,000 Future's taxable income for the year was: a. $123,170*b. $143,170c. $72,000d. $135,000e. $107,00042. Centor Corporation's unappropriated retained earnings on January 1, 2013, were $678,000. For 2013 its net income per books was $120,000. It
paid cash dividends of $93,000 in 2013 and it appropriated $75,000 of retained earnings during 2013. Centor Corporation's unappropriated retained earnings on December 31, 2013, were:43. During 2013, Vera Venture sold her interests in two small business corporations. Her loss on Ballpoint Pen Corporation stock was $120,000 and her loss on Pencils Corporation stock was $20,000. Both losses qualify under Code Sec. 1244. Vera files jointly with her husband. What is the amount and character of Vera's loss to be reported on their joint return for 2013?44. Comic Books Corporation, a calendar year corporation, had a net operating loss of $50,000 for 2013. Comic Books made a proper election to forgo the carryback period. For 2014, Comic Books correctly deducted $40,000 of the 2013 loss. Comic Books will lose the remaining $10,000 if it cannot be deducted by the end of which tax year?45. In order for Bandana Corporation, a calendar year taxpayer, to be required to make estimated tax payments in 2013, its expected tax liability would have to be:*a. $500 or moreb. $600 or morec. $1,000 or mored. $2,000 or more46. Ben Brown transferred property that had an adjusted basis to him of $40,000 and a fair market value of $50,000 to Crackers Corporation in exchange for 100 percent of Crackers's only class of stock and $15,000 cash. At the time of the transfer, the stock had a fair market value of $35,000. What is the amount of gain to be recognized by Ben?
47. Sue Smith transferred a building that had an adjusted basis to her of $75,000 and a fair market value of $150,000 to Jumbo Corporation solely in exchange for 100 percent of Jumbo's only class of stock. The building was subject to a mortgage of $100,000, which Jumbo assumed for bona fide business purposes. The fair market value of the stock at the date of transfer was $50,000. What is the amount of gain to be recognized by Sue?48. Craig Co. is a domestic small business C corporation which has been actively engaged in a trade or business since its incorporation. Kimberly purchased 200 shares of Code Sec. 1202 stock from Craig Co. on September 1, 2009. Kimberly wants to sell the stock (a very large gain would result from the sale) but wants to be sure the gain qualifies for the 50 percent exclusion. When should Kimberly sell the stock in order to qualify for the exclusion?
You've reached the end of your free preview.
Want to read all 28 pages?
Corporation, Taxation in the United States, Code Sec.