Civil Law Questions

Tops Corp., a C-corporation, donated inventory of clothing to a homeless shelter. The inventory was worth $50,000 and had an adjusted basis of $10,000. Ignoring the possible 10% limitation, how much is Tops Corp.'s allowable charitable contribution deduction?a)$10,000b)$20,000c)$30,000d)$50,000

At the beginning of 2015, Tate Corp. has E & P of $30,000. During 2015 the corporation generates $10,000 of additional E & P. On the last day of the tax year, the corporate distributes $35,000 to its sole shareholder, Tom, whose stock basis is $15,000 before the distribution. Which of the following statements is true?a)John recognizes $30,000 of dividend income.b)John's stock basis is now $0.c)Tate Corp.'s E & P balance is now $5,000.d)John recognizes a taxable gain of $20,000.

John Co., a calendar year C-corporation, has 2018 taxable income of $400,000. Calculate John Co.'s federal income tax.a)$140,000b)$120,000c)$136,000d)$84,000

Which of the following is false?a)An objective of U.S. Generally Accepted Accounting Principles is to provide a clear reflection of income.b)An objective of the Internal Revenue Code is to raise revenue for the government.c)The differing objectives of U.S. GAAP and the Internal Revenue Code lead to book-tax differences.d)An objective of the Internal Revenue Code is to provide a clear reflection of income.

The following capital gain and loss amounts pertain to Smith Inc., a C-Corporation:2011 net long-term capital gains $10,0002012 net short-term capital gains $30,0002013 net short-term capital gains $20,0002014 net long-term capital gains $15,0002015 net long-term capital losses $80,000How much capital loss is carried forward to 2016?a)$15,000b)$5,000c)$45,000d)It depends on if an election is made to waive the carryback period.

Smith Co., a calendar year C-corporation, began business on Oct. 1, 2016. It had incurred $68,400 of organizational expenditures. How much may it deduct on its 2016 tax return?a)$380b)$1,140c)$6,057d)$4,560

Which judicial concept states that in a transaction involving many steps, any one step may be collapsed (or disregarded) to arrive directly at the result reached?a)Continuity of Interestb)Business Purposec)Substance Over Formd)Arm's Length

Rochelle receives a Partnership K-1 in which she owns a 40% interest. The QBI amount attributable to Rochelle is $50,000. If this is Rochelle's only qualified business income and she has no capital gains, what is the net amount of increase to taxable income from the partnership income?A.$50,000B.$10,000C.$40,000D.-0-

An example of a situation where the law has determined that there is no legal offer is:

Under the check-the-box regulations, which of the following statements is true?a)Unincorporated entities with more than one owner may elect to be classified as sole proprietorships, partnerships, or corporations.b)Unincorporated entities with only one owner may elect to be classified as a sole proprietorship or partnership.c)If no election is made, an unincorporated entity with two or more owners is treated as a partnership for tax purposes.d)Entities incorporated under state law with two or more shareholders may elect to be treated as partnerships for tax purposes.

Aubrey was awarded a postgraduate fellowship grant of $11,100 in January of this yearby a tax-exempt educational organization. She also received $7,000 from her parents for support. Aubrey is not a candidate for a degree and was awarded the grant to continue her research. What amount should be included in her gross income for this taxable year?A.-0-B.$7,000C.$11,100D.$18,100

Favorable depreciation deductions for purchases of business property is an example of which type of consideration that impacts the Internal Revenue Code?a)Economic considerationsb)Social considerationsc)Equity considerationsd)Political considerations

Assuming you live in a minority jurisdiction, if Mary offers you $100 to walk across a high wire from the Wehner Building to the Horticulture Building, when do you accept the unilateral offer?

If you sell your herd of cows at a normal cattle auction and there are several bids on your cattle, you are:

Ken, 19 years of age is a candidate for a bachelor's degree at a college hundreds of miles away from his parent's home. He receives a scholarship of $80,000 from his state of residence. He spends $60,000 for tuition, $6,000 for books, $10,000 for room and board and keeps $4,000 for living expenses while away at college.•How much is taxable to Ken in the current year?A.$14,000B.$4,000C.$10,000D.$20,000

Junior enters into a contract to buy a car with Sleezy Sam's Used Cars when he is 16 years old. If he takes the car back to Sleezy Sam's which is true?

court order forcing someone to perform the obligation to a contract that the party had previously agreed to do and then refused to do, is called:

Which of the following statements is true with respect to capital assets for individual taxpayers?A.The taxpayer must report gains and losses on investment property, but only reports gains on personal property.B.Losses on investment property are deductible only to the extent of gains on investment property.C.Losses on personal use property are deductible only to the extent of gains on personal use property.D.Gains and losses for both investment and personal property are reported on schedule D of the form 1040.

Which of the following is a primary tax law source?a)General Counsel Memorandab)Written Determinationsc)Treasury Regulationsd)Legal Opinions

Which of the following offer guidance to a taxpayer on how a specific transaction will be taxed before proceeding with it?a)Letter Rulingsb)Revenue Proceduresc)Revenue Rulingsd)Determination Letters