Part I: Multiple Choice Please choose the answer that best answers the question 1. The starting point for an IRS corporate audit is a. Schedule C b. Form 1120 c. Schedule M-1 d. Schedule D 2. The number to begin an Earnings & Profits calculation is a. Capital Income b. Book Income c. Adjusted gross income d. Taxable Income 3. The corporate equivalent of Qualified Dividend Income is a. Dividend Received Deduction b. Ordinary Dividend Income c. Passive Foreign Investment Income d. Passive Activity Loss 4. What are the two types of Book/Tax Adjustment? a. Permanent/Non-resident b. Temporary/Wash sale c. Wash Sale/Non-Resident d. Permanent/Temporary Jeff is the largest shareholder of EG corporation. At the Board meeting he convinces the CEO to allow him to use the corporate jet to fly his wife away for their honeymoon. IRS would most likely rule this... 5. a. Not Necessary b. Not ordinary c. Constructive Dividend d. Fraud 6. The following is an Addition to the Earnings & Profits calculation Tax exempt income Federal Income Taxes Paid a. b