Assuming the corporation contributed ,000 to charity, what is the taxable income?
The stock had a par value of and was originally sold at .
D CORPORATIONS: GAINS AND LOSSES NONLIQUIDATING DISTRIBUTIONS, ACCUMULATED EARNINGS TAX CAPITAL GAINS AND LOSSES OF CORPORATIONS PROBLEMS AND QUESTIONS True or False l.
Which of the following would not be subtracted from taxable income?
If a parent liquidates a subsidiary, the parent's basis in the subsidiary's assets will a.
If book income for its second year of operations is 0,000, for tax purposes it is a. the corporation has a sufficient dividend carryover d. subtract the federal income tax from taxable income b. shareholders consent to include the adjusted taxable income in their gross incomes c. To compute the personal holding company tax, one must a. is expensing organization costs of ,000 over 10 years for book purposes and the minimum period for tax. Loans to shareholders may be an indication of unreasonable accumulation of income. Unlike individuals, corporations are entitled to a capital loss carryback. Unlike individuals, corporations may carryover capital losses for only five years. Corporations cannot deduct capital losses from ordinary income. A corporation with a net operating loss in the current year cannot deduct charitable contributions. Corporate net operating losses are carried back three years and carried over five years. A major change in the ownership of a corporation's stock may cause a net operating loss carryover to be lost. Capital loss carrybacks and carryovers are treated as short-term capital losses. Corporations can elect to carry net operating losses forward only, instead of back. Which of the following would most likely represent a reasonable business need for purposes of the accumulated earnings tax?