Questions from Federal Taxation

Q: List four types of differences that can cause a corporation’s book income

List four types of differences that can cause a corporation’s book income to differ from its taxable income.

Q: Port Corporation wants to change its tax year from a calendar year

Port Corporation wants to change its tax year from a calendar year to a fiscal year ending June 30. Port is a C corporation owned by 100 shareholders, none of whom own more than 5% of the stock. Can P...

Q: Stan and Susan, two calendar year taxpayers, are starting a

Stan and Susan, two calendar year taxpayers, are starting a new business to manufacture and sell digital circuits. They intend to incorporate the business with $600,000 of their own capital and $2 mil...

Q: Compare the tax treatment of capital gains and losses by a corporation

Compare the tax treatment of capital gains and losses by a corporation and by an individual.

Q: How is “control” defined for purposes of Sec. 351

How is “control” defined for purposes of Sec. 351(a)?

Q: What are organizational expenditures? How are they treated for tax purposes

What are organizational expenditures? How are they treated for tax purposes?

Q: What are start-up expenditures? How are they treated for

What are start-up expenditures? How are they treated for tax purposes?

Q: Describe three ways in which the treatment of charitable contributions by individual

Describe three ways in which the treatment of charitable contributions by individual and corporate taxpayers differ.

Q: Carver Corporation uses the accrual method of accounting and the calendar year

Carver Corporation uses the accrual method of accounting and the calendar year as its tax year. Its board of directors authorizes a cash contribution on November 3 of Year 1, that the corporation pays...

Q: Why are corporations allowed a dividends-received deduction? What dividends

Why are corporations allowed a dividends-received deduction? What dividends qualify for this special deduction?