CORPORATIONS SPECIAL SITUATIONS Question TF 38 Tax exempt interest on state and

Corporations special situations question tf 38 tax

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CORPORATIONS: SPECIAL SITUATIONS Question TF #38 Tax-exempt interest on state and local private activity bonds (issued in 2010) is a tax preference item. a. True *b. False 227. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #39 Intangible drilling costs are a tax preference item only for integrated oil companies. *a. True b. False
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228. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #40 The ACE adjustment can be positive or negative. *a. True b. False 229. CHAPTER 3-- CORPORATIONS: SPECIAL SITUATIONS Question TF #41 A negative ACE adjustment is beneficial to a corporation. *a. True b. False 230. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #42 AMTI may be defined as regular taxable income after AMT adjustments (other than the NOL and ACE adjustments) and after tax preferences. a. True *b. False 231. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #43 The regular foreign tax credit is available to reduce AMT liability. *a. True b. False 232. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #44 The AMT exemption amount of $40,000 phases out entirely once a corporation's average gross receipts exceeds $5 million. a. True *b. The AMT NOL deduction is limited to 90%. *a. True b. False 234. CHAPTER 3-- CORPORATIONS: SPECIAL SITUATIONS Question TF #46 The accumulated earnings credit for a personal service corporation is the greater of
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$150,000 or the current E & P for the year needed to meet the reasonable needs of the business. *a. True b. False 235. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #47 ATI = Taxable Income Adjustments Dividends paid Accumulated earnings credit. a. True *b. False 236. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #48 Reasonable needs for purposes of the accumulated earnings tax include loans to shareholders. a. True *b. False 237. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #49 The penalty tax in 2011 for AET and PHC situations is the highest rate applicable to individual taxpayers. a. True *b. False 238. CHAPTER 3--CORPORATIONS: SPECIAL SITUATIONS Question TF #50 Long-term capital gains are taxed under the AET and PHC taxes. a. MC #1 Which statement is false? a. The AMT is not limited to C corporations. b. The
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