William Corporation reports $100,000 of gross income for a tax year after 2017. What are the dividends
Question:
William Corporation reports $100,000 of gross income for a tax year after 2017. What are the dividends received deductions if Marley receives $300,000 in dividends from a 15% ownership interest in a U.S. corporation it has held for seven years? Assume $150,000 of IRC § 162 expenses.
Group of answer choices
-$100,000
-None of the answers are correct.
-$150,000
-250,000
-$125,000
2. WIlliam Corporation was formed and began business on August 1. It incurred the following organizational expenditures: expenses in connection with stock issuance of $5,000; legal fees for drafting corporate documents of $20,000; asset transfer fees of $19,000; accounting fees of $33,000; and fees paid to the state of incorporation of $1,000. Compute the organizational expenditures deduction for the current year (to the nearest dollar).
Group of answer choices
-$6,000
-$1,000
-$2,472
-$5,000
-None of the answers are correct.
3. Scottish Corporation reported $1,150,000 of taxable income for the 2020 tax year on its Form 1120. What was the amount of regular tax liability?
Group of answer choices
-$402,500
-$241,500
-None of the answers are correct
-$0
-$1,150,000
4. Which of the following is not eligible for the organizational expenditures deduction?
Group of answer choices
-None of the above.
-Expenses relating to marketing shares of stock
-Accounting fees relating to creating a corporation
-Fees paid for temporary directors
-Legal fees for filing articles of incorporation
5. Which corporate penalty tax targets corporations accumulating profits beyond a reasonable business need (thus avoiding the double-tax regime)?
Group of answer choices
-Accumulated Earnings Tax
-Corporate Earnings & Profits
-Personal Holding Company Tax
-None of the answers are correct.
-Accumulated Adjustment Account
Federal Tax Research
ISBN: 9781285439396
10th edition
Authors: Roby Sawyers, William Raabe, Gerald Whittenburg, Steven Gill