Problem Set 8
1. Which of the following, if any, incorrectly characterize the checkthe-box Regulations?
None of the above.
2. Which of the following, if any, correctly describe the status or
nature of limited liability compan- ies?
One of the main reasons
30. R realized a gain of $10,000 on a fire that destroyed part of a
warehouse. R also sold several assets during the current taxable year
Business use equipment held three years Investment land held fifteen
years Travel trailer used
34. Five years ago, Wilson James purchased a photocopier with a fiveyear recovery period for use in his business for $8,000. He deducted
depreciation totaling $7,078 in the five years. In the current year,
after owning and using the machine 58 m
39. $ 3,000 3,000 (1,800)
Assuming H has a net 1231 gain of $1,600 and depreciation
recapture of $2,000, what is the increase in his A.G.I., if any, from
40. Which of the following is true of the exceptions and limi
K's 1231 gain qualifies for the 20 percent capital gain rate.
44. A's gains an losses for the year are summarized as follows: Gain of
$4,000 on the sale of corporate stocks held three years. Loss of $400
on the sale of equipment held two years.
The C corporation's taxable income is a. $35,700
18. B, a sole proprietorship, has the following information for the
B's self-employment income is b. $30,000
19. L operates a proprietorship. During the year, she transferred the
22. A business has the following information:
If Z performs services for the business, which of the following
statements is false? b. Z's self-employment income is $36,800 if Z is
a 40 percent shareholder of an S corporation.
23. Which of the fo
27. T, a C corporation, receives a dividend of $100 from a 15 percent
owned U.S. corporation and has a dividend-received deduction of b.
28. R, a C corporation, has the following information:
Assume R did not have dividend income, NOL, or c
Swift Corporation is an accrual basis, calendar year taxpayer. In
December 2008, Swifts board of directors authorizes a $60,000 cash
donation to the Salvation Army to help provide food for homeless
persons. The donation is paid as follows: $25,0
Presuming the taxable income limitation does not apply, Goose
Corporations dividends received deduction for the current year is:
12. In the current year, Auburn Corporation (a calendar year taxpayer)
has the following income and expen