True or False ________ 1. It is possible for a trust managed by a trustee to be treated as a corporation for income tax purposes. ________ 2. If the taxpayer creates a legal corporation under state law, the government cannot disregard the entity and tax the taxpayer on the income. ________ 3. Generally, corporate taxable income is more closely related to accounting income than individual taxable income is related to accounting income. ________ 4. Corporations should try to reclassify initial expenditures as expenses other than organization costs because organization costs do not give rise to any tax benefit. ________ 5. A corporation is not allowed a dividends-received deduction in computing its net operating loss for any given year. ________ 6. A corporation's annual charitable contribution deduction is limited to 10 percent of its taxable income without reduction for charitable contributions, the dividends-received deduction, net operating loss carrybacks, and capital loss carrybacks. ________ 7. Capital losses are more advantageous to corporations than individuals because there is a three-year carryback for corporations but no carry-back for individuals. ________ 8. Corporations compute gains and losses on the sale of depreciable property in the same way as individuals. ________ 9. An accrual basis corporation must use the cash method in claiming deductions for amounts paid to its sole shareholder, who is an individual on the cash method. ________ 10. Generally, corporations pay a lower marginal tax rate than individuals pay. ________ 11. Corporations are required to pay an alternative minimum tax at the same rate as individuals. ________ 12. A corporation with alternative minimum taxable income of $20,000 will be subject to an alternative minimum tax of $4,000. ________ 13. Form 1120 for a calendar year corporation is due April 15. ________ 14. An individual who transfers property in return for all of the common stock of a corporation will not recognize gain under