1. During 2019, Ral Corp. exchanged 5,000 shares of its own $10 par common stock for land with a fair market value of $75,000. As a result of this exchange, Ral should report in its 2019 tax return

	a.	no gain
	b.	$25,000 ordinary income
	c.	$25,000 sec 1245 gain
	d.	$25,000 sec 1231 gain

2. For Year 2, Quest Corp., an accrual-basis, calendar-year C corporation, had an $8,000 unexpired charitable contribution carryover from Year 1. Quest’s Year 2 taxable income before the deduction for charitable contributions was $200,000. On December 12, Year 2, Quest’s board of directors authorized a $15,000 cash contribution to a qualified charity, which was made on January 6, Year 3. What is the maximum allowable deduction that Quest may take as a charitable contribution on its Year 2 income tax return?

	a.	$8,000
	b.	$15,000
	c.	$23,000
	d.	$20,000

3. In 2019, Best Corp., an accrual-basis, calendar-year C corporation, received $100,000 in dividend income from the common stock that it held in an unrelated, less-than-20%-owned, domestic corporation. The stock was not debt-financed and was held for over a year. Best recorded the following information for 2019:

Loss from Best’s operations	$(10,000)
Dividends received	100,000
Taxable income (before dividends-
received deduction)	$  90,000

Best’s dividends-received deduction on its 2019 tax return was

	a.	$45,000
	b.	$65,000
	c.	$50,000
	d.	$100,000

Answer rating: 100% (QA)

Correct answer and explaination is given below Answer1 The correct option would be a ie No gain Expl... View the full answer