Questions from Federal Taxation

Q: Gulf Corporation reports the following amounts for Years 1 through 4:

Gulf Corporation reports the following amounts for Years 1 through 4: Gulf is not a small corporation exempt from the AMT. In what year(s) does Gulf obtain a minimum tax credit? In what year(s) can G...

Q: Several years ago, Bill acquired 100 shares of Bold Corporation stock

Several years ago, Bill acquired 100 shares of Bold Corporation stock directly from the corporation for $100,000 in cash. This year, he sold the stock to Sam for $35,000. What tax issues regarding the...

Q: In the current year, Edge Corporation’s regular tax before credits is

In the current year, Edge Corporation’s regular tax before credits is $165,000. Its tentative minimum tax is $100,000, and its only available tax credit is a $200,000 general business credit relating...

Q: In the current year, Harden Corporation has $700,000

In the current year, Harden Corporation has $700,000 of regular taxable income, $60,000 of tax preference items, $140,000 of net positive AMT adjustment items (other than the ACE adjustment), and $1 m...

Q: Ajax Corporation expects to have a $100,000 regular tax

Ajax Corporation expects to have a $100,000 regular tax and a $70,000 AMT for the current year. Last year, it had a $200,000 regular tax and no AMT. What minimum quarterly estimated tax payment must A...

Q: Dallas Corporation reports the following amounts for Years 1 and 2:

Dallas Corporation reports the following amounts for Years 1 and 2: Each tax year is a 12-month period. Dallas qualifies as a small corporation for purposes of estimated tax payments, but it does not...

Q: Zhao (an individual) and nine other unrelated individuals own all

Zhao (an individual) and nine other unrelated individuals own all of Duck Corporation’s stock. The following information pertains to Duck for the current year: Adjusted ordinary gross income……………………$3...

Q: In which of the following situations will Small Corporation be deemed to

In which of the following situations will Small Corporation be deemed to be a PHC? Assume that personal holding company income comprises more than 60% of Small’s adjusted ordinary gross income. a. Ar...

Q: In each of the following four scenarios, determine whether the corporation

In each of the following four scenarios, determine whether the corporation is a personal holding company. Assume the corporation’s outstanding stock is owned equally by three individ...

Q: In the current year, Moore Corporation is deemed to be a

In the current year, Moore Corporation is deemed to be a PHC and reports the following results: Taxable income……………………………………………………………………………..$200,000 Dividend received from an 18%-owned domestic corpo...