FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: S: Corporations

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

Which item does not appear on Schedule K of Form 1120S?

A) Intangible drilling costs.
B) Foreign loss.
C) Utilities expense.
D) Recovery of a tax benefit.
E) All of the above items appear on Schedule K.

F) A) and B)
G) A) and C)

Correct Answer

verified

Show Answer

Question 82

True/False

Review LaterAdd Note

Review Later

An S corporation that has total assets of at least $10 million on Schedule L at the end of the tax year must file a Schedule M-3.

A) True
B) False

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

Four unrelated individuals acquire assets on behalf of Jump Corporation on May 21, 2014, purchased assets on June 5, 2014, and begin doing business on June 15, 2014. They subscribe to shares of stock, file articles of incorporation for Jump, and become shareholders on July 23, 2014. The S election must be filed no later than 2 1/2 months after:

On January 2, 2013, David loans his S corporation $10,000. By the end of 2013 David's stock basis is zero and the basis in his note has been reduced to $8,000. During 2014, the company's operating income is $10,000. The company makes 2014 distributions to David of $11,000. David reports a(n) :

On January 2, 2013, Tim loans his S corporation $10,000. By the end of 2013, Tim's stock basis is zero, and the basis in his note has been reduced to $8,000. During 2014, the company's operating income is $10,000. The company makes 2014 distributions to Tim of $8,000. Tim reports a(n) :

Which transaction affects the Other Adjustments Account on an S corporation's Schedule M­2?

During 2014, Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2013, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?

Explain the OAA concept.

Since loss property receives a in basis without any loss recognition, S corporation distributions of loss property should be .

An S corporation must possess which of the following characteristics?

husband and wife must consent to an S election if they own their stock jointly.

A capital loss allocated to a shareholder always reduces the Other Adjustments Account.

S corporation status allows shareholders to realize tax benefits from corporate losses immediately (assuming sufficient stock basis).

Compare the distribution of property rules for an S corporation with the corresponding partnership rules.

Alomar, a cash basis S corporation in Orlando, Florida, holds the following assets and liabilities on January 1, 2014, the date the S election is made. During 2014, Alomar collects the accounts receivable and pays the accounts payable. The land is sold for $3 million, and the taxable income for the year is $590,000. Calculate any built-in gains tax.

If an S corporation has C corporation E & P and passive investment income in excess of ____________________ % of its gross receipts for ____________________ consecutive taxable years, the S election is terminated at the beginning of the year.

The amount of any distribution to an S corporation shareholder is equal to the plus the fair market value of any other property distributed.

The § 1202 exclusion of on the disposition of small business stock (is/is not) available for S stock.