Corporate Taxation Exam Bank
Course Introduction
Corporate Taxation is a comprehensive course that examines the federal income taxation of corporations and their shareholders, focusing on the tax consequences of corporate formation, distributions, and liquidation. The course covers key topics such as the tax treatment of dividends, stock redemptions, mergers and acquisitions, corporate reorganizations, as well as the rules for Subchapter C corporations. Students will analyze Internal Revenue Code sections, Treasury regulations, and relevant case law to gain a deep understanding of tax planning opportunities and compliance requirements for business entities. Through case studies and real-world examples, the course equips students with the skills necessary to identify and resolve complex corporate tax issues.
Recommended Textbook McGraw Hills Taxation of Individuals and Business Entities 6th Edition by Spilker
Available Study Resources on Quizplus
25 Chapters
2779 Verified Questions
2779 Flashcards
Source URL: https://quizplus.com/study-set/3095
Page 2
Chapter 1: An Introduction to Tax
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/61346
Sample Questions
Q1) Which of the following is true?
A) A regressive tax rate structure imposes an increasing marginal tax rate as the tax base increases
B) Regressive tax structures are the most common tax rate structure
C) An example of a regressive tax is an excise tax
D) In terms of effective tax rates, a sales tax can be viewed as a regressive tax
E) None of these
Answer: D
Q2) The largest federal tax, in terms of revenue collected, is the social security tax.
A)True
B)False
Answer: False
Q3) Excise taxes are typically levied on the value of a good purchased.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Tax Compliance, the Irs, and Tax Authorities
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/61345
Sample Questions
Q1) Lavonda discovered that the U.S. Circuit Court of Appeals for the Federal Circuit has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS. Lavonda should choose which of the following trial courts to hear her case:
A) Tax Court only.
B) U.S. Court of Federal Claims only.
C) U.S. District Court only.
D) Tax Court or the U.S. District Court.
E) Tax Court or the U.S. Court of Federal Claims.
Answer: B
Q2) Lavonda discovered that the 5th Circuit (where Lavonda resides) has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS. Lavonda should choose which of the following trial courts to hear her case:
A) Tax Court only.
B) U.S. Court of Federal Claims only.
C) U.S. District Court only.
D) Tax Court or the U.S. District Court.
E) Tax Court or the U.S. Court of Federal Claims.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Tax Planning Strategies and Related Limitations
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/61344
Sample Questions
Q1) The goal of tax planning is tax minimization.
A)True
B)False
Answer: False
Q2) A common income shifting strategy is to:
A) shift income from low tax rate taxpayers to high tax rate taxpayers
B) shift deductions from low tax rate taxpayers to high tax rate taxpayers
C) shift deductions from high tax rate taxpayers to low tax rate taxpayers
D) accelerate tax deductions
E) None of these
Answer: B
Q3) Which of the following decreases the benefits of accelerating deductions?
A) decreasing tax rates
B) smaller after-tax rate of return
C) larger after-tax rate of return
D) larger magnitude of transactions
E) None of these
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Individual Income Tax Overview, Exemptions, and Filing Status
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/61343
Sample Questions
Q1) The character of income determines the rate at which the income is taxed.
A)True
B)False
Q2) Which of the following is NOT a from AGI deduction?
A) Standard deduction
B) Itemized deduction
C) Personal exemption
D) None of these. All of these are from AGI deductions
Q3) In February of 2013, Lorna and Kirk were married. During 2014, Lorna received $40,000 of compensation from her employer and Kirk received $30,000 of compensation from his employer. The couple together reported $2,000 of itemized deductions. Lorna and Kirk filed separately in 2014. What is Lorna's taxable income and what is her tax liability (use the applicable tax rate schedule)?
Q4) From AGI deductions are generally more valuable to taxpayers than for AGI deductions.
A)True
B)False
Q5) A personal automobile is a capital asset.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Gross Income and Exclusions
Available Study Resources on Quizplus for this Chatper
131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/61342
Sample Questions
Q1) Identify the rule dictating that on a sale of an asset a taxpayer need only include the incremental gain in gross income rather than the entire proceeds from the sale:
A) Tax benefit rule
B) Constructive receipt
C) Return of capital principle
D) Wherewithal to pay
E) None of these
Q2) This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $250 and a $2,000 cash bonus. What amount must Ed include in his gross income?
A) $2,250
B) $2,000
C) $250
D) Zero if Ed offers to contribute his watch and bonus to a qualified charity
E) Zero - all employee awards are excluded from gross income
Q3) A portion of each payment from a purchased annuity represents income.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Individual Deductions
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/61341
Sample Questions
Q1) Chuck has AGI of $70,000 and has made the following payments \[\begin{array} { l r }
\text { State income tax withholding } & \$ 1,900 \\
\text { State income tax estimated payments } & 850 \\
\text { Federal income tax withholding } & 7,100 \\
\text { Social Security tax withheld from wages } & 4,800 \\
\text { State excise tax on liquor } & 400 \\
\text { State inheritance tax } & 1,200 \\
\text { County real estate tax } & 790 \\
\text { School district tax on realty } & 510
\end{array}\] Calculate the amount of taxes that Chuck can include with his itemized deductions.
Q2) This year, Jong paid $3,000 of interest on a qualified education loan. Jong files married joint and reports modified AGI of $142,000. What is Jong's deduction for interest expense on an educational loan?
A) $2,500
B) $3,000
C) $1,500
D) $1,000
E) None of these.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Individual Income Tax Computation and Tax
Credits
Available Study Resources on Quizplus for this Chatper
156 Verified Questions
156 Flashcards
Source URL: https://quizplus.com/quiz/61340
Sample Questions
Q1) The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid. The maximum amount of the penalty is unlimited.
A)True
B)False
Q2) Regular taxable income is the starting point for determining the alternative minimum tax.
A)True
B)False
Q3) Angelena files as a head of household. In 2014, she reported $50,000 of taxable income, including a $10,000 qualified dividend. What is her gross tax liability, rounded to the nearest whole dollar amount (use the tax rate schedules)?
A) $5,353
B) $5,443
C) $7,500
D) $6,913
Q4) Atlas earned $17,300 from his sole proprietorship in 2014. This was his only source of income. How much in self-employment taxes will Atlas be able to deduct?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Business Income, Deductions, and Accounting Methods
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/61339
Sample Questions
Q1) The full-inclusion method requires cash basis taxpayers to include prepayments for goods or services into realized income.
A)True
B)False
Q2) Which of the following is a true statement?
A) Interest expense is not deductible if the loan is used to purchase municipal bonds.
B) Insurance premiums are not deductible if paid for "key man" life insurance.
C) One half of the cost of business meals is not deductible.
D) All of these are true.
E) None of these is true.
Q3) Werner is the president and CEO of Acme, Inc. and this year he took a prospective client to dinner. During the dinner the President and the client discussed a proposed contract for over $6 million and personal matters. After dinner the CEO took the client to a football game and no business was discussed. The CEO paid $1,220 for an expensive dinner and spent $600 for tickets to the game. What is the deductible amount of these expenses?
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Property Acquisition and Cost Recovery
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/61338
Sample Questions
Q1) Geithner LLC patented a process it developed in the current year. The patent is expected to create benefits for Geithner over a 10 year period. The patent was issued on April 15th and the legal costs associated with the patent were $43,000. In addition, Geithner had unamortized research expenditures of $15,000 related to the process. What is the total amortization expense Geithner may deduct during the current year?
A) $2,417
B) $2,559
C) $4,108
D) $4,350
E) None of these
Q2) The MACRS depreciation tables automatically switch to the straight-line method when it exceeds the declining balance method.
A)True
B)False
Q3) Goodwill and customer lists are examples of §197 amortizable assets.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Property Dispositions
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/61337
Sample Questions
Q1) Which of the following does not ultimately result in a capital gain or loss?
A) Sale of a personal use asset.
B) Sale of inventory.
C) Gain on equipment used in a trade or business held for more than one year, if it is the only asset sale during the year.
D) Sale of capital stock in another company.
E) None of these.
Q2) Which of the following sections recaptures or recharacterizes only corporate taxpayer's gains?
A) §291.
B) §1239.
C) §1245.
D) Unrecaptured §1250 gains.
E) None of these.
Q3) §1231 assets include all assets used in a trade or business.
A)True
B)False
Q4) Residential real property is not like-kind with non-residential real property.
A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Investments
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/61336
Sample Questions
Q1) With tax-exempt investment income, an investor's before-tax rate of return is greater than her after-tax rate of return.
A)True
B)False
Q2) Maximum yearly contributions per beneficiary to Coverdell Savings Accounts are limited to:
A) $1,500
B) $2,000
C) $5,500
D) No limit on amount you contribute yearly
E) None of these
Q3) Capital loss carryovers for individuals are carried forward indefinitely.
A)True
B)False
Q4) Mr. and Mrs. Smith purchased 100 shares of stock for $45 per share on June 30, 20X6. On March 30, 20X8, the Smith family decides to sell these shares for $30 generating a loss of $15 per share. On April 15, 20X8, the Smith family realized they made a mistake and repurchased 100 shares for $35 per share. When will the Smith family receive a tax benefit for the loss on the March 30, 20X8 sale?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Compensation
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/61335
Sample Questions
Q1) Flexible spending accounts allow employees to set aside before-tax dollars for medical and dependent care expenses.
A)True
B)False
Q2) For 2014, up to $300 of qualified transportation fringe benefits can be excluded from income.
A)True
B)False
Q3) Employees complete a Form W-2 to specify their income tax withholding.
A)True
B)False
Q4) An apartment manager can exclude the fair market value of free rent from his or her income.
A)True
B)False
Q5) Annika's employer provides each employee with up to $200 of monthly vouchers for public transportation. What is the amount that Annika must include into income with respect to her benefit in 2014?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Retirement Savings and Deferred Compensation
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/61334
Sample Questions
Q1) A taxpayer can only receive a saver's credit if she contributes to a qualified retirement account.
A)True B)False
Q2) Yvette is a 44-year-old self-employed contractor (no employees). During 2014, her Schedule C net income was 400,000. Assuming Yvette has no contributions to other retirement plans. What is the maximum amount that Yvette can contribute to (1) a SEP IRA and (2) an individual 401(k)?
Q3) Henry has been working for Cars Corp. for 40 years and 4 months. Cars Corp. provides a defined benefit plan for its employees. Under the plan, employees receive 2 percent of the average of their three highest annual salaries for each full year of service. Henry's vested benefit percentage is 80 percent (40 years × 2 percent for each full year). Henry retired on January 1, 2014 Henry received annual salaries of $520,000, $540,000, and $560,000 for 2011, 2012, and 2013, respectively. What is the maximum benefit Henry can receive under the plan in 2014?
Q4) A SEP IRA is an example of a self-employed retirement account.
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Tax Consequences of Home Ownership
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/61333
Sample Questions
Q1) Which of the following statements regarding the first time home buyer credit is correct?
A) Taxpayers who acquired a home in 2008 and claimed the credit is not required to pay the credit back.
B) Taxpayers who acquired a home in 2008 and claimed the credit are required to pay the credit back over a 15-year period.
C) Taxpayers who acquired a home in 2008 and claimed the credit are required to pay it back over a 15-year period.
D) None of these
Q2) Larry owned and lived in a home for five years before marrying Darlene. Larry and Darlene lived in the home for one year before selling it at a $600,000 gain. Larry was the sole owner of the residence until it was sold. How much of the gain may Larry and Darlene exclude?
A) $0
B) $250,000
C) $500,000
D) $600,000
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Entities Overview
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/61332
Sample Questions
Q1) What is the tax impact to a C corporation or an S corporation when it makes a property distribution to a shareholder?
A) Recognizes either gain or loss
B) Does not recognize gain or loss
C) Recognizes gain but not loss
D) Recognizes loss only
Q2) Tax rules require that entities be classified the same way for tax purposes as they are classified for legal purposes.
A)True
B)False
Q3) On which tax form do LLCs with more than one owner report their income and losses?
A) Form 1120
B) Form 1120S
C) Form 1065
D) Form 1040, Schedule C
Q4) S corporations have more restrictive ownership requirements than other entities.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Corporate Operations
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/61331
Sample Questions
Q1) On January 1, 2005 [before the adoption of ASC 718 (a codification of FAS 123R)], Net Optimizers Inc. granted 1,000 nonqualified stock options (NQOs) valued at $.05 per option. Each option entitles the owner to purchase one share of stock for $1. These options vest at 10 percent per year for ten years. On December 31, 2014, 300 options are exercised when the stock price is $5. In 2014, what is the book-tax difference associated with the stock options? Is it favorable or unfavorable? Is it permanent or temporary?
Q2) Large corporations are allowed to use the cash method of accounting for at least the first two years of their existence.
A)True
B)False
Q3) For 2014, SRH's taxable income is $35,000 and JHH's taxable income is $45,000. Together, Scott and Jackson Howard own 100 percent of both corporations. What is the combined tax liability of the two corporations?
Q4) IndusTree Inc. received $1,800,000 from the sale of a property in 2014. The property's adjusted basis for regular tax purposes was $200,000 at the time of the sale. The property's adjusted basis for AMT purposes was $290,000. What is the amount of the AMT adjustment due to the sale of the asset? Does it increase or decrease AMTI?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Accounting for Income Taxes
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/61330
Sample Questions
Q1) Tuna Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000. Finally, Tuna subtracted a dividends received deduction of $15,000 in computing its current year taxable income. Book equivalent of taxable income is:
A) $1,125,000
B) $1,110,000
C) $1,015,000
D) $985,000
Q2) Which of the following statements best describes a valuation allowance as it relates to accounting for income taxes?
A) A valuation allowance is a contra account to deferred tax assets only
B) A valuation allowance is a contra account to deferred tax liabilities only
C) A valuation allowance is a contra account to deferred tax assets and liabilities
D) A valuation allowance is a contra account to noncurrent deferred tax assets only
To view all questions and flashcards with answers, click on the resource link above.
19
Chapter 18: Corporate Taxation: Nonliquidating
Distributions
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/61329
Sample Questions
Q1) Viking Corporation is owned equally by Sven and his wife Olga, each of whom hold 100 shares in the company. Viking redeemed 75 shares of Sven's stock in the company on December 31, 20X3. Viking paid Sven $2,000 per share. His income tax basis in each share is $1,000. Viking has total E&P of $500,000. What are the tax consequences to Sven because of the stock redemption?
A) $75,000 capital gain and a tax basis in each of his remaining shares of $1,000. B) $75,000 capital gain and a tax basis in each of his remaining shares of $2,000.
C) $150,000 dividend and a tax basis in each of his remaining shares of $1,000.
D) $150,000 dividend and a tax basis in each of his remaining shares of $4,000.
Q2) Houghton Company reports negative current E&P of ($500,000) and negative accumulated E&P of ($800,000). Houghton distributed $100,000 to its sole shareholder, Blossom Applegate, on December 31, 20X3. Blossom's tax basis in her Houghton stock is $50,000. What is the tax treatment of the distribution to Blossom and what is her tax basis in Houghton stock after the distribution?
Q3) The term "earnings and profits" is well defined in the Internal Revenue Code. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Corporate Formation, Reorganization, and Liquidation
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/61328
Sample Questions
Q1) Which of the following statements best describes the "built-in loss" rules that apply to property transferred to a corporation under section 351?
A) If the basis of a property transferred to a corporation under section 351 exceeds its fair market value, the corporation will always take a tax basis in the property equal to the property's fair market value.
B) If the basis of a property transferred to a corporation under section 351 exceeds its fair market value, the corporation will always take a tax basis in the property equal to the property's tax basis in the hands of the shareholder.
C) If the aggregate basis of all property transferred to a corporation under section 351 exceeds its aggregate fair market value, the aggregate tax basis of the property in the hands of the corporation cannot exceed the aggregate fair market value of the property.
D) If the aggregate basis of all property transferred to a corporation under section 351 exceeds its aggregate fair market value, the aggregate tax basis of the property in the hands of the corporation cannot exceed the aggregate tax basis of the property.
Q2) What amount of gain or loss does Mike recognize in the complete liquidation?
Q3) What amount of gain or loss does Amelia recognize in the complete liquidation?
To view all questions and flashcards with answers, click on the resource link above.
Page 21
Chapter 20: Forming and Operating Partnerships
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/61327
Sample Questions
Q1) Which person would generally be treated as a material participant in an activity?
A) A participant in a rental activity
B) A limited partner
C) A LLC member not involved with management of the LLC
D) A general partner
Q2) The least aggregate deferral test uses the profit percentage of each partner to determine the minimum amount of tax deferral for the partner group as a whole.
A)True
B)False
Q3) A partnership can request a five month extension by filing Form 7004 prior to the original due date of the partnership return.
A)True
B)False
Q4) Bob is a general partner in Fresh Foods Partnership and is trying to determine if the income reported on his K-1 should be classified as passive or active trade or business income. List three different criteria that, if met, would allow Bob to treat the income from Fresh Foods as active trade or business income.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: Dispositions of Partnership Interests and Partnership Distributions
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/61326
Sample Questions
Q1) Tyson is a 25% partner in the KT Partnership. On January 1, KT distributes $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and land with a fair value of $8,000 (inside basis of $12,000) to Tyson. KT has no liabilities at the date of the distribution. Tyson's basis in KT is $24,000. What is Tyson's basis in the distributed inventory and land?
A) $8,000 inventory, $12,000 land
B) $16,000 inventory, $8,000 land
C) $0 inventory, $8,000 land
D) $8,000 inventory, $0 land
Q2) Heidi and Teresa are equal partners in the HT Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners each have a $50,000 basis in their partnership interests. On December 31, the partnership makes a pro-rata operating distribution to Heidi of $60,000 cash. What is the amount and character of Heidi's recognized gain or loss? What is Heidi's remaining basis in HT?
Q3) Lola is a 35% partner in the LW Partnership. On January 1, LW distributes $39,000 cash to Lola in complete liquidation of her partnership interest. LW has only capital assets and no liabilities at the date of the distribution. Lola's basis in LW is $50,000. What is the amount and character of Lola's gain or loss?
Page 23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: S Corporations
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/61325
Sample Questions
Q1) When an S corporation distributes appreciated property to its shareholders the S corporation recognizes gain as though it had sold the appreciated property for its fair market value just prior to the distribution.
A)True
B)False
Q2) Which of the following is prohibited from being an S corporation shareholder?
A) Foreign citizens that are U.S. residents.
B) U.S. citizens.
C) Corporations.
D) 51 unrelated individuals.
E) None of these.
Q3) S corporations without earnings and profits from prior C corporation years are not subject to the excess net passive income tax.
A)True
B)False
Q4) S corporations recognize gains and losses on distributions of property.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 23: State and Local Taxes
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/61324
Sample Questions
Q1) Wyoming imposes an income tax on corporations.
A)True
B)False
Q2) Assume Tennis Pro attends a sports equipment expo in Washington State. Assume this activity creates nexus of the Business and Occupation (B&O) tax. Assume the tax is .5% of gross receipts for retailers and 1.5% of gross receipts on services. If Tennis Pro has $20,000 of Washington retail sales and $2,000 of services performed, calculate Tennis Pro's B&O tax.
Q3) What was the Supreme Court's holding in Complete Auto Transit?
A) An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence.
B) Reaffirmed that an out-of-state business must have physical presence in the state before the state may require the business to collect sales tax from in-state customers.
C) Spelled out four criteria for determining whether states may subject nondomiciliary companies to an income tax.
D) Defined solicitation for purposes of Public Law 86-272.
Q4) Discuss the steps necessary to determine whether a sales or use tax applies and how the tax is collected.
To view all questions and flashcards with answers, click on the resource link above.
Page 25
Chapter 24: The US Taxation of Multinational Transactions
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/61323
Sample Questions
Q1) Windmill Corporation, a Dutch corporation, is owned by the following unrelated persons: 50 percent by a U.S. corporation, 5 percent by a U.S. individual, and 45 percent by a Swiss corporation. During the year, Windmill earned $2,000,000 of subpart F income. Which of the following statements is true about the application of subpart F to the income earned by Windmill?
A) Windmill is a CFC and the U.S. corporation and U.S. individual will have a deemed dividend of $1,000,000 and $100,000, respectively.
B) Windmill is a CFC and only the U.S. corporation will have a deemed dividend of $1,000,000.
C) Windmill is a CFC and the U.S. corporation, U.S. individual, and Swiss corporation will have a deemed dividend of $1,500,000, $100,000, and $900,000, respectively.
D) Windmill is not a CFC and none of the shareholders will have a deemed dividend under subpart
Q2) Nexus involves the criteria used by a government to assert its right to tax a person or transaction within or without its borders.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Transfer Taxes and Wealth Planning of the Cfa Institute
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/61322
Sample Questions
Q1) A couple who is married at the time of completing a gift can elect to file a joint gift tax return.
A)True
B)False
Q2) The probate estate consists of all property owned by the decedent that is excluded from the gross estate.
A)True
B)False
Q3) Only complete gifts are subject to the Federal gift tax.
A)True
B)False
Q4) A serial gift strategy uses multiple gifts to maximize the value of the annual exclusion.
A)True B)False
Q5) A transfer of a terminable interest will not generally qualify for a marital deduction. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.