Questions from Federal Taxation

Q: Menifee Corporation has conducted business for several years, and its annual

Menifee Corporation has conducted business for several years, and its annual gross receipts never have been more than $4 million. Jackie, who has owned all of Menifee’s stock since she incorporated it...

Q: Determine whether the following statements relating to the AMT for a corporation

Determine whether the following statements relating to the AMT for a corporation are true or false. If false, explain why. a. Tax preference items only increase AMTI. b. A corporation uses the same...

Q: Identify each of the following as a tax preference item (PREF

Identify each of the following as a tax preference item (PREF), an AMT adjustment item to calculate preadjustment AMTI (ADJ), an item to adjust from preadjustment AMTI to ACE (ACE), or none of these (...

Q: What adjustment does a corporation make if ACE is more than preadjustment

What adjustment does a corporation make if ACE is more than preadjustment AMTI? If ACE is less than preadjustment AMTI?

Q: Florida Corporation incurs AMT for the first time in the current year

Florida Corporation incurs AMT for the first time in the current year. The main reason for incurring the AMT is a $2 million gain on a current year installment sale that Florida is recognizing over te...

Q: Some tax scholars say tax-exempt interest on state or local

Some tax scholars say tax-exempt interest on state or local bonds that are not private activity bonds can, because of the ACE adjustment, produce three different effective tax rates depending on the c...

Q: Indicate whether the following items are includible in regular taxable income,

Indicate whether the following items are includible in regular taxable income, preadjustment AMTI, and/or ACE. Also indicate whether a corporation must make a positive, negative, or zero adjustment wh...

Q: Why might shareholders avoid Sec. 351 treatment? Explain three ways

Why might shareholders avoid Sec. 351 treatment? Explain three ways they can accomplish this end.

Q: Discuss the regular tax and AMT depreciation rules applicable to the following

Discuss the regular tax and AMT depreciation rules applicable to the following types of property acquired in the current year. a. Section 1250 property—a factory building b. Section 1245 property—a...

Q: In the current year, Burbank Corporation incurs an AMT for the

In the current year, Burbank Corporation incurs an AMT for the first time. Its AMT is due to an ACE adjustment resulting from Burbank’s receiving $4 million of life insurance proceeds upon the death o...