1. Slow Corporation owns 20% interest in Fast Corporation, a domestic corporation. For 1993, Slow Corporation had gross receipts of $790,000, operating expenses of $800,000 and dividend income of $240,000 from Fast Corporation. What is Slow Corporations dividends received deduction for 1993?
a. $-0- b. $168,000 c. $184,000 d. $192,000 e. Some other answer.
2. Cullin Corporation realized a long-term capital gain of $10,000 , a short-term capital gain of $15,000 and a long-term capital loss of $27,000. What amount of the long-term capital loss may Cullin Corporation deduct in the current tax year?
a. $10,000 b. $15,000 c. $25,000 d. $27,000 e. Some other answer.
3. During 1992, ABC Corporation had the following income and expenses:
What is ABC's charitable contribution deduction for 1992?
a. $15,000 b. $17,000 c. $19,400 d. $20,000 e. Some other answer.
4. The basis of stock received in exchange for property transferred to a corporation is the same as the basis of the property transferred with certain adjustments. All of the following would decrease the basis of stock except:
a. The fair market value of the property received. b. Any amount treated as a dividend. c. Any money received. d. Any loss recognized on the exchange. e. All of these adjustments would decrease the basis.
5. During 1992, Anna transferred land with an adjusted basis to her of $20,000 and a fair market value of $56,000, to Elm Corporation in exchange for 100% of Elm Corporation's only class of stock. The land was subject to a liability of $26,000 which Elm assumed for legitimate business purposes. What is the amount of Anna's recognized gain?.
a. $-0- b. $6,000 c. $10,000 d. $36,000 e. Some other answer.
6. Winslow Corporation distributed a sailboat to its only shareholder, Mr. H. The sailboat had a FMV of $75,000 and an adjusted basis to Winslow Corporation of $50,000. The sailboat was also subject to a loan of $80,000 which Mr H. assumed. What is Winslow Corporation's gain or loss on the distribution?
a. ($5,000) b. $-0- c. $25,000 d. $30,000 e.Some other answer.
7. As of January 1, 1993, Cunningham Corporation, an accrual method taxpayer had accumulated earnings and profits of $225,000. For its 1993 tax year, Cunningham's books and records reflect the following:
Based on the above, what is the amount of Cunningham's accumulated earnings and profits as of December 31,1993
a. $189,750 b. $231,500 c. $ 256,500 d. $350,000 e.Some other answer.
8.During 1992 Sea Corporation reported gross income from operations of $100,000 and operating expenses of $150,000. Sea Corporation also received dividend income of $90,000 from a domestic corporation in which Sea is a 20% shareholder. What is the amount of Sea Corporation's net operating loss?
a.$-0- b.$23,000 c. $32,000 d. $40,000 e. Some other answer.
9. Glazed Windows, Inc., a C corporation, realized a long-term capital gain of $5,000 from the sale of a tract of land, a long-term capital gain of $10,000 from the sale of stock of Gem Corporation, and a long-term capital loss of $23,000 fm the sale of U.S. securities. What amount of the long-term capital loss may Glazed deduct in the current tax year?
a. $23,000 b. $18,000 c. $15,000 d. $8,000 e. Some other answer.
10. Beeker Corporation sells a residential real property it purchased 12 years ago in 1984. The apartment rental unit originally cost $800,000. Beeker selected a 20 year period over which to recover the cost of the asset using accelerated depreciation. The basis using accelerated depreciation was $250,000 at the date of the sale. The asset sold for $450,000. What is the §291 recapture for this asset?
a. $26,000 b. $40,000 c. $25,000 d. $10,000 e. Some other answer.