100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Test Bank For South-Western Federal Taxation 2023 Comprehensive, 46th Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young Chapter 1-28 $14.99   Add to cart

Exam (elaborations)

Test Bank For South-Western Federal Taxation 2023 Comprehensive, 46th Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young Chapter 1-28

 0 view  0 purchase
  • Course
  • Federal Taxation
  • Institution
  • Federal Taxation

Test Bank For South-Western Federal Taxation 2023 Comprehensive, 46th Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young Chapter 1-28

Preview 3 out of 30  pages

  • November 9, 2024
  • 30
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
  • Federal Taxation
  • Federal Taxation
avatar-seller
tuition
,True j/ jFalse

1. Tomas jowns ja jsole jproprietorship, jand jLucy jis jthe jsole jshareholder jof ja jC jcorporation. jIn jthe jcurrent jyear,
jboth jbusinesses jmake ja jnet jprofit jof j$60,000. jNeither jbusiness jdistributes jany jfunds jto jthe jowners jin jthe jyear. jFor
jthe jcurrent jyear, jTomas jmust jreport j$60,000 jof jincome jon jhis jindividual jtax jreturn, jbut jLucy jis jnot jrequired jto
jreport jany jincome jfrom jthe jcorporation jon jher jindividual jtax jreturn.
a. True
b. False
ANSWER: j True

2. Carol jand jCandace jare jequal jpartners jin jPeach jPartnership. jIn jthe jcurrent jyear, jPeach jhad ja jnet jprofit jof
j$75,000 j($250,000 jgross jincome j– j$175,000 joperating jexpenses) jand jdistributed j$25,000 jto jeach jpartner. jPeach
jmust jpay jtax jon
$75,000 jof jincome.
a. True
b. False
ANSWER: j False

3. Rajib jis jthe jsole jshareholder jof jCardinal jCorporation, ja jcalendar jyear jS jcorporation. jIn jthe jcurrent jyear,
jCardinal jgenerated ja jnet jprofit jof j$350,000 j($520,000 jgross jincome j– j$170,000 joperating jexpenses) jand
jdistributed j$80,000 jto jRajib. jRajib jmust jreport jthe jCardinal jCorporation jprofit jof j$350,000 jon jhis jFederal
jincome jtax jreturn.
a. True
b. False
ANSWER: j True

4. Donald jowns ja j45% jinterest jin ja jpartnership jthat jearned j$130,000 jin jthe jcurrent jyear. jHe jalso jowns j45% jof jthe
jstock jin ja jC jcorporation jthat jearned j$130,000 jduring jthe jyear. jDonald jreceived j$20,000 jin jdistributions jfrom jeach
jof jthe jtwo jentities jduring jthe jyear. jWith jrespect jto jthis jinformation, jDonald jmust jreport j$78,500 jof jincome jon jhis
jindividual jincome jtax jreturn jfor jthe jyear.
a. True
b. False
ANSWER: j True

5. Quail jCorporation jis ja jC jcorporation jthat jgenerates jnet jincome jof j$125,000 jduring jthe jcurrent jyear. jIf jQuail
jpaid jdividends jof j$25,000 jto jits jshareholders, jthe jcorporation jmust jpay jtax jon j$100,000 jof jnet jincome.
jShareholders jmust jreport jthe j$25,000 jof jdividends jas jincome.
a. True
b. False
ANSWER: j False

6. Eagle jCompany, ja jpartnership, jhad ja jshort-term jcapital jloss jof j$10,000 jduring jthe jcurrent jyear. jAaron, jwho jowns
j25% jof jEagle, jwill jreport j$2,500 jof jEagle’s jshort-term jcapital jloss jon jhis jindividual jtax jreturn.
a. True
b. False

, ANSWER: j True

7. Matt, jthe jsole jshareholder jof jPastel jCorporation j(a jC jcorporation), jhas jthe jcorporation jpay jhim ja jsalary jof
j$600,000 jin jthe jcurrent jyear. jThe jTax jCourt jhas jheld jthat j$200,000 jrepresents junreasonable jcompensation. jMatt jmust
jreport ja jsalary jof
$400,000 jand ja jdividend jof j$200,000 jon jhis jindividual jtax jreturn.
a. True
b. False
ANSWER: j True

8. Double jtaxation jof jcorporate jincome jresults jbecause jdividend jdistributions jare jincluded jin ja jshareholder’s jgross
jincome jand jare jnot jdeductible jby jthe jcorporation.


a. True
b. False
ANSWER: j True

9. Jake, jthe jsole jshareholder jof jPeach jCorporation j(a jC jcorporation) jhas jthe jcorporation jpay jhim j$100,000. jFor
jincome jtax jpurposes, jJake jwould jprefer jto jhave jthe jpayment jtreated jas ja jdividend jinstead jof jsalary.
a. True
b. False
ANSWER: j True

10. Thrush jCorporation jfiles jits jForm j1120, jwhich jreports jtaxable jincome jof j$200,000 jin jthe jcurrent jyear.
jThe jcorporation’s jtax jis j$42,000.
a. True
b. False
ANSWER: j True

11. The jcorporate jmarginal jincome jtax jrate jis jlower jthan jthe jtop jindividual jtax jrate.
a. True
b. False
ANSWER: j True

12. Under jthe jCheck-the-box jRegulations, ja jtwo-owner jLLC jthat jfails jto jelect jto jbe jto jtreated jas ja jcorporation
jwill jbe jtaxed jas ja jsole jproprietorship.
a. True
b. False
ANSWER: j False

13. Employment jtaxes japply jto jall jentity jforms jof joperating ja jbusiness. jAs ja jresult, jemployment jtaxes jare ja jneutral
jfactor jin jselecting jthe jmost jtax jeffective jform jof joperating ja jbusiness.
a. True

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller tuition. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80364 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.99
  • (0)
  Add to cart