Formation of the Corporation
C:2-1. A sole proprietor is required to use the same reporting period for both business and
individual tax information. T, p. C:2-3.
C:2-2. S corporations are flow-through entities, in which S income is
Bus Law 360
Chapter 37 (Agency)
LO. 1) Differentiate between an agent and an independent contractor.
- Control and authority are characteristics that distinguish ordinary employees and independent
Special Partnership Issues
C:10-1. A partnership cannot recognize gain or loss on a current distribution. F, p. C:10-2.
C:10-2. If a partnership asset with a deferred precontribution gain is distributed within seven years
Other Corporate Tax Levies
C:5-1. The alternative minimum tax is the excess of the tentative minimum tax amount over the
regular tax amount. T, p. C:5-2.
C:5-2. Corporations cannot use the installment method in calculating alternati
The Corporate Income Tax
C:3-1. A regular corporation must use a calendar year as its tax year unless it has a substantial
business purpose to use a fiscal year. F, p. C:3-2.
C:3-2. Corporations are permitted to deduct $3,000 in net
1) Which of the following documents is issued by the IRS to a specific taxpayer?
A. Revenue procedure
C. Letter ruling
D. Information release
2) Which of the following courts is not a trial court for tax cases?
A. U.S. District Court
S TRAYER UNIVERSITY ACC 565
Which of the following statements about the Statements on Tax Standards is true?
A) A CPA is never allowed to use a taxpayer's estimates when preparing a tax return.
B) The CPA must tell the IRS upon becoming aware that an e
Corporate Liquidating Distributions
C:6-1. Liquidation and dissolution have the same legal meaning. F, p. C:6-4.
C:6-2. In a complete liquidation, a liability assumed by a shareholder reduces the shareholders
amount realized. T, p.
Corporate Nonliquidating Distributions
C:4-1. Corporate distributions that exceed earnings and profits are capital gains. F, p. C:4-2.
C:4-2. Corporations may use retained earnings as a substitute for earnings and profits. F, p. C:4
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
Contrast the logical and the physical view of data and discuss why separate views are
necessary in database applications. Describe which perspective is most useful for each of th
Ch. 35 Homework
LO.1 A chapter 7 bankruptcy is commenced by the filing of a petition in the bankruptcy court
by the debtor. Creditors may file a petition for bankruptcy against any debtor who could
Ch. 46 HW
LO.1 Every state has adopted blue sky laws to regulate intrastate sales of securities. The
national securities markets improvement act exempts from state review and registration
requirements securities o
I thought the concept of judgment proof was signification because you can get all the judgments you
want on someone but if they do not have any money you will not recover any damages from them. It does not
seem very fair but there
Chapter 42 Partnerships
I found the end of our lecture and the introduction to partnerships to be most interesting. You mentioned
that a partnership is very similar to a tenancy in entirety and if one of the partners dies his share
Law homework chapter 38 (3 persons in agency)
The most important concept brought up in the previous class was when you gave an hypothetical of an
agent acting crazy, punching a customer he did not like in the face and how in thi
Chapter C3 The Corporate Income Tax Discussion Questions
C3-1 Unless High Corporation is an S corporation or a personal service corporation, High Corporation can select a tax year ending on the last day of any month (i.e., a fiscal year or a calendar year
Ch. 45 HW
LO.1 A stock subscription is a contract or agreement to buy a specific number and kind of
shares when they are issued by the corporation. A transfer of stock is when a person who holds a
LO.1 Corporations may be classified in terms of their relationship to the public, the source of
their authority, and the nature of their activities. Public corporations are created to conduct
Ch. 39 Homework
LO.1 An employee is a person who is hired to perform a service subject to the control of an
employer. Both the employer and the employee must consent to the creation of an employment