Questions from Federal Taxation

Q: Describe a situation in which a corporation will not be treated as

Describe a situation in which a corporation will not be treated as such under state law.

Q: If a C corporation donates ordinary income property to a qualified charity

If a C corporation donates ordinary income property to a qualified charity, the measure of the amount of the deduction is the adjusted basis of the property. Do you agree with this statement? Explain....

Q: Golf Corporation generates a $40,000 net operating l0ss in

Golf Corporation generates a $40,000 net operating l0ss in 2018. Leo Tree’s the Golf CEO expect to offset all of the 2019 taxable income with the NOL. Explain to Leo whether that is possible.

Q: Kite, a calendar year C corporation, incurred a net operating

Kite, a calendar year C corporation, incurred a net operating loss in 2017 and a net operating loss in 2018. Explain any differences in the treatment of these NOLs.

Q: The dividends received deduction does not always completely eliminate the effect of

The dividends received deduction does not always completely eliminate the effect of taxation of dividend income at the corporate shareholder level Explain this statement.

Q: Two small C corporations have invested in the stock of IBM Corporation

Two small C corporations have invested in the stock of IBM Corporation. Although they own the same number and type of shares, one corporation is able to claim a larger dividends received deduction tha...

Q: Mallard Corporation was formed in December 2018 and plans to use the

Mallard Corporation was formed in December 2018 and plans to use the cash basis of accounting. Mallard incurred one-half of its organizational expenses in December 2018 and one-half in January 2019. T...

Q: Which of the following statements is not correct? a.

Which of the following statements is not correct? a. The basis of an asset that is purchased must be adjusted for depreciation allowable b. The general rule for the basis of property acquired by gift...

Q: Beige Corporation has a fiscal year ending April 30. For the

Beige Corporation has a fiscal year ending April 30. For the year ending April 30, 2018, Beige generated taxable income of $1.2 million. What is Beige Corporation's tax liability for this period?

Q: Small closely held corporations are formed with a minimum of investment.

Small closely held corporations are formed with a minimum of investment. Key assets used in the business are then leased to the corporation by the shareholders. What are the advantages of this approac...