FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 22: S Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

On January 1,Bobby and Alice own equally all of the stock of an electing S corporation called Prairie Dirt Delight.The dirt company has a $60,000 loss for a non-leap year.On the 200th day of the year,Bobby sells his one-half of the stock to his son,Saul.How much of the $60,000 loss,if any,is allocated to Bobby?

A) $0.
B) $13,562.
C) $16,438.
D) $32,877.
E) None of the above.

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

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

A distribution from OAA is taxable.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

A voluntary revocation of an S election requires only a consent of shareholders owning a majority of shares on the day that the revocation is made.

There is no limit on the amount of passive investment income that an S corporation can receive during the year.

Post-termination distributions that are charged against OAA do not get tax-free treatment.

Which statement is true?

The Section 179 expense deduction is a Schedule K item.

Form 1120S provides a shareholder's computation of his or her stock basis.

Simmen,Inc.,a calendar year S corporation,incurred the following items in 2011. Calculate Simmen's nonseparately computed income.

When loss assets are distributed by an S corporation,a shareholder's basis is equal to the asset's fair market value.

Which type of distribution from an S corporation is taxed at the 0/15% Federal income tax rate?

On January 2,2010,Tim loans his S corporation $10,000.By the end of 2010,Tim's stock basis is zero,and the basis in his note has been reduced to $8,000.During 2011,the company's operating income is $10,000.The company also makes distributions to Tim of $8,000.Which statement is correct?

How large must total assets on Schedule L be at the end of the year for an S corporation to be required to file Schedule M-3?

A capital loss allocated to a shareholder always reduces the other adjustments account.

A maximum dollar sales limitation applies to an S corporation.

Yates Corporation elects S status,effective for calendar year 2011.Yates' only asset has a basis of $50,200 and a fair market value of $110,400 as of January 1,2011.The asset is sold at the end of 2011 for $130,800.What amount must Mark Farris,a 60% owner and subject to a 15% income tax rate,pay,if any?

Tax-exempt income is listed on Schedule ____________________ of Form 1120S.

List some of the separately stated items listed on Schedule K of the Form 1120S.

On December 31,2010,Erica Sumners owns one share of an S corporation's 10 outstanding shares of stock.The basis of Erica's share is $300.During 2011,the S corporation has no income or deductions,but incurs a loss of $3,650.Determine the amount of the loss allocated to Erica,and calculate her stock basis at the end of 2011.

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