Question 1

The termination of an S election occurs on the day after a corporation ceases to be a qualifying S corporation.

Accepted Answer

A) True 
 B)False

Question 2

With respect to passive losses,there are three classes of income,losses,and credits: ____________________,____________________,and passive.

Accepted Answer

active,por...

Question 3

Yates Corporation elects S status,effective for calendar year 2015.Yates' only asset has a basis of $50,200 and a fair market value of $110,400 as of January 1,2015.The asset is sold at the end of 2015 for $130,800.What amount must Mark Farris,a 60% owner and subject to a 15% income tax rate,pay,if any?

Accepted Answer

A)   $5,358
B)   $12,642
C)   $21,070
D)   $35,718E) A) and B)
F) A) and C)

Question 4

Which tax provision does not apply to an S corporation?

Accepted Answer

A)   DPAD.
B)   Section 1244 stock.
C)   Penalty for failure to file.
D)   10% charitable contribution limitation.
E)   Estimated tax payments.F) A) and D)
G) B) and C)

Question 5

An S corporation's LIFO recapture amount equals the excess of the inventory's value under ____________________ over the ____________________ value.

Accepted Answer

The answer of An S corporation's LIFO recapture amount equals...

Question 6

Samantha owned 1,000 shares in Evita,Inc. ,an S corporation,that uses the calendar year.On October 11,2015,Samantha sells all of her Evita stock.Her basis at the beginning of 2015 was $60,000.Her share of the corporate income for 2015 was $22,000,and she receives a distribution of $35,000 between January 1 and October 11,2015.Her stock basis at the time of the sale is:

Accepted Answer

A)   $117,000.
B)   $82,000.
C)   $60,000.
D)   $47,000.E) B) and C)
F) B) and D)

Question 7

A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14.By the end of the year,$60,000 of these receivables are collected.Calculate any built-in gains tax,assuming that there is sufficient taxable income.

Accepted Answer

A)   $0
B)   $10,000
C)   $21,000
D)   $35,000
E)   Some other amountF) C) and D)
G) None of the above

Question 8

All tax preference items flow through the S corporation,to be included in the shareholders' AMT calculations.

Accepted Answer

A) True 
 B)False

Question 9

A distribution from OAA is taxable.

Accepted Answer

A) True 
 B)False

Question 10

Shareholders owning a(n)____________________ of shares (voting and nonvoting)may ____________________ revoke an election.

Accepted Answer

majority,v...

Question 11

Where the S corporation rules are silent,C corporation provisions apply.

Accepted Answer

A) True 
 B)False

Question 12

Tax-exempt income at the S corporation level flows through as taxable to the shareholder.

Accepted Answer

A) True 
 B)False

Question 13

Advise your client how income,expenses,gain,and losses are allocated to shareholders of an S corporation.

Accepted Answer

In general,S corporation items are divid...

Question 14

In the case of a complete termination of an S corporation interest,a ____________________ tax year may occur.

Accepted Answer

The answer of In the case of a complete termination...

Question 15

Arizona is a(n)____________________ property state for purposes of the S corporation requirements.

Accepted Answer

The answer of Arizona is a(n)____________________ property state for purposes...

Question 16

Which,if any,of the following can be eligible shareholders of an S corporation?

Accepted Answer

A)   A Roth IRA.
B)   Partnership.
C)   A non-U.S.corporation.
D)   A nonqualifying trust.
E)   None of the above can own stock.F) All of the above
G) C) and D)

Question 17

Which,if any,of the following items decreases an S corporation's AAA?

Accepted Answer

A)   Section 1231 loss.
B)   Expenses related to tax-exempt income.
C)   Depletion in excess of basis.
D)   Distribution from earnings and profits.
E)   None of the above affects the AAA.F) B) and C)
G) A) and E)

Question 18

If a resident alien shareholder moves outside the U.S. ,the S election is terminated.

Accepted Answer

A) True 
 B)False

Question 19

An S corporation may not amortize its organization expenses.

Accepted Answer

A) True 
 B)False

Question 20

Voting common stock and voting preferred stock (with a preference on dividends)would be treated as ____________________ class(es)of stock.

Accepted Answer

The answer of Voting common stock and voting preferred stock...

Exam 15: S Corporations

Advise your client how income,expenses,gain,and losses are allocated to shareholders of an S corporation.

Correct Answer
verified
In general,S corporation items are divid...
View Answer

Arizona is a(n)____________________ property state for purposes of the S corporation requirements.

Correct Answer
verified

Which,if any,of the following can be eligible shareholders of an S corporation?

Correct Answer
verified

Where the S corporation rules are silent,C corporation provisions apply.

Correct Answer
verified

An S corporation's LIFO recapture amount equals the excess of the inventory's value under over the value.

Correct Answer
verified

An S corporation may not amortize its organization expenses.

Correct Answer
verified

If a resident alien shareholder moves outside the U.S. ,the S election is terminated.

Correct Answer
verified

With respect to passive losses,there are three classes of income,losses,and credits: ,,and passive.

Correct Answer
verified
active,por...
View Answer

In the case of a complete termination of an S corporation interest,a ____________________ tax year may occur.

Correct Answer
verified

Voting common stock and voting preferred stock (with a preference on dividends)would be treated as ____________________ class(es)of stock.

Correct Answer
verified

All tax preference items flow through the S corporation,to be included in the shareholders' AMT calculations.

Correct Answer
verified

A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14.By the end of the year,$60,000 of these receivables are collected.Calculate any built-in gains tax,assuming that there is sufficient taxable income.

Correct Answer
verified

Correct Answer
verified

Tax-exempt income at the S corporation level flows through as taxable to the shareholder.

Correct Answer
verified

Correct Answer
verified

A distribution from OAA is taxable.

Correct Answer
verified

The termination of an S election occurs on the day after a corporation ceases to be a qualifying S corporation.

Correct Answer
verified

Which,if any,of the following items decreases an S corporation's AAA?

Correct Answer
verified

Shareholders owning a(n) of shares (voting and nonvoting)may revoke an election.

Correct Answer
verified
majority,v...
View Answer

Which tax provision does not apply to an S corporation?

Correct Answer
verified

Exam 15: S Corporations

Advise your client how income,expenses,gain,and losses are allocated to shareholders of an S corporation.

Correct AnswerverifiedIn general,S corporation items are divid...View AnswerShow Answer

Arizona is a(n)____________________ property state for purposes of the S corporation requirements.

Correct AnswerverifiedShow Answer

Which,if any,of the following can be eligible shareholders of an S corporation?

Correct AnswerverifiedShow Answer

Where the S corporation rules are silent,C corporation provisions apply.

Correct AnswerverifiedShow Answer

An S corporation's LIFO recapture amount equals the excess of the inventory's value under ____________________ over the ____________________ value.

Correct AnswerverifiedShow Answer

An S corporation may not amortize its organization expenses.

Correct AnswerverifiedShow Answer

If a resident alien shareholder moves outside the U.S. ,the S election is terminated.

Correct AnswerverifiedShow Answer

With respect to passive losses,there are three classes of income,losses,and credits: ____________________,____________________,and passive.

Correct Answerverifiedactive,por...View AnswerShow Answer

In the case of a complete termination of an S corporation interest,a ____________________ tax year may occur.

Correct AnswerverifiedShow Answer

Voting common stock and voting preferred stock (with a preference on dividends)would be treated as ____________________ class(es)of stock.

Correct AnswerverifiedShow Answer

All tax preference items flow through the S corporation,to be included in the shareholders' AMT calculations.

Correct AnswerverifiedShow Answer

A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14.By the end of the year,$60,000 of these receivables are collected.Calculate any built-in gains tax,assuming that there is sufficient taxable income.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Tax-exempt income at the S corporation level flows through as taxable to the shareholder.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A distribution from OAA is taxable.

Correct AnswerverifiedShow Answer

The termination of an S election occurs on the day after a corporation ceases to be a qualifying S corporation.

Correct AnswerverifiedShow Answer

Which,if any,of the following items decreases an S corporation's AAA?

Correct AnswerverifiedShow Answer

Shareholders owning a(n)____________________ of shares (voting and nonvoting)may ____________________ revoke an election.

Correct Answerverifiedmajority,v...View AnswerShow Answer

Which tax provision does not apply to an S corporation?

Correct AnswerverifiedShow Answer

Correct Answer
verified
In general,S corporation items are divid...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

An S corporation's LIFO recapture amount equals the excess of the inventory's value under over the value.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

With respect to passive losses,there are three classes of income,losses,and credits: ,,and passive.

Correct Answer
verified
active,por...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Shareholders owning a(n) of shares (voting and nonvoting)may revoke an election.

Correct Answer
verified
majority,v...
View Answer

Correct Answer
verified