Quiz Fall 9,Business - Accounting And Taxation

Free

Most states begin the computation of corporate taxable income with an amount from the Federal income tax return

Free

Julian, Berta, and Maria own 400 shares, 400 shares, and 200 shares, respectively, in Caramel Corporation (E & P of $750,000). Berta is Julian's sister, and Maria is Julian's aunt. Caramel Corporation redeems all of Julian's stock for $420,000 . Julian paid $200 a share for the stock five years ago. Julian continued to serve on Caramel's board of directors after the redemption. With respect to

3

Free

A typical U.S. state piggybacks its collections of the corporate income tax, by letting the Federal government collect and remit the corresponding tax to the state

4

Free

Ethel, Hannah, and Samuel, unrelated individuals, own the stock in Broadbill Corporation (E & P of $700,000) as follows: Ethel, 300 shares; Hannah, 300 shares; and Samuel, 400 shares. Broadbill redeems 200 of Samuel's shares (basis of $175,000) for $250,000 . If Samuel's stock is a capital asset and has been held for over three years, Samuel has:

5

Free

State and local politicians tend to apply new and increased taxes to taxpayers who are non resident visitors to the jurisdiction, such as a tax on auto rentals, because the taxpayer cannot vote to reelect (or oust) the lawmaker

6

Hannah, Greta, and Winston own the stock in Redpoll Corporation (E & P of $900,000) as follows: Hannah, 600 shares; Greta, 400 shares; and Winston, 1,000 shares. Greta is Hannah's daughter, and Winston is Hannah's brother. Redpoll Corporation redeems 400 of Hannah's shares (basis of $55,000) for $240,000 . Hannah purchased the stock three years ago as an investment. With respect to the stock

7

Property taxes generally are collected by local taxing jurisdictions, not the state or Federal governments

8

Lucinda owns 1,100 shares of Blackbird Corporation stock at a time when Blackbird has 2,000 shares of stock outstanding. The remaining shareholders are unrelated to Lucinda. What is the minimum number of shares Blackbird must redeem from Lucinda so that the transaction will qualify as a disproportionate redemption?

9

Typically, sales/use taxes constitute about 20 percent of a state's annual tax collections

10

Hazel, Emily, and Frank, unrelated individuals, own all of the stock in Wren Corporation (E & P of $1.2 million) as follows: Hazel, 1,500 shares; Emily, 300 shares; and Frank, 200 shares. Wren redeems 900 of Hazel's shares (basis of $210,000) for $625,000 . With respect to the distribution in redemption of the stock:

11

Most of the U.S. states have adopted an alternative minimum tax, similar to the Federal system, in taxing the income of corporations

12

Bristlebird Corporation (E & P of $700,000) has 3,000 shares of common stock outstanding. Juan owns 1,500 shares and his wife, Roberta, owns 1,500 shares. Juan and Roberta each have a basis of $90,000 in their Bristlebird stock. In the current year, Bristlebird Corporation redeems 1,000 shares from Juan for $250,000 . With respect to the distribution in redemption of the Bristlebird stock:

13

All of the U.S. states have adopted a tax based on the net taxable income of corporations

14

Which of the following is an incorrect statement regarding the application of the § 318 stock attribution rules?

15

Politicians frequently use tax credits and exemptions to create economic development incentives

16

Keshia owns 200 shares in Parakeet Corporation. Keshia has a 30% beneficiary interest in her deceased grandmother's estate. The estate owns 400 shares in Parakeet Corporation. None of the other beneficiaries of the estate own stock in Parakeet. In applying the § 318 attribution rules:

17

Usually a business chooses a location where it will build a new plant based chiefly on tax considerations

18

Kite Corporation has 1,000 shares of stock outstanding. Kent owns 300 shares, Kent's father owns 200 shares, Kent's daughter owns 100 shares, and Kent's aunt owns 200 shares. Plover Corporation owns the other 200 shares in Kite Corporation. Kent owns 75% of the stock in Plover Corporation. Applying the § 318 stock attribution rules, how many shares does Kent own in Kite Corporation?

19

Roughly five percent of all taxes paid by businesses in the U.S. are to state, local, and municipal jurisdictions

20

Coffee Corporation has 2,000 shares of common stock outstanding. John owns 700 of the shares, John's grandfather owns 100 shares, John's father owns 100 shares, John's ex-wife owns 700 shares, and Redbird Partnership owns 400 shares. John is a 50% partner in Redbird Partnership. How many shares is John deemed to own in Coffee Corporation under the § 318 attribution rules?

21

Which exempt organizations are not required to file an annual Federal tax return?

Find your answers, solutions and more...

We made it much easier for you to find exactly what you're looking for on Quizgoat.

Quiz Fall 9,Business - Accounting And Taxation

Recent Packs