Question 1

Tax-exempt income is listed on Schedule ____________________ of Form 1120S.
K

Accepted Answer

The answer of Tax-exempt income is listed on Schedule ____________________...

Question 2

Which item does not appear on Schedule K of Form 1120S?

Accepted Answer

A)  Intangible drilling costs.
B)  Foreign loss.
C)  Utilities expense.
D)  Recovery of a tax benefit.
E)  All of the above items appear on Schedule K.F) B) and E)
G) A) and E)

Question 3

Estela,Inc.,a calendar year S corporation,incurred the following items in 2013.
  Calculate Estela's nonseparately computed income.

Accepted Answer

The answer of Estela,Inc.,a calendar year S corporation,incurred the following...

Question 4

What statement is correct with respect to an S corporation?

Accepted Answer

A)  There are now more LLCs than S corporations.
B)  S corporation status allows shareholders immediately to realize tax benefits from corporate losses.
C)  An S corporation is prohibited from being a member of an affiliated group.
D)  An LLP may own stock in an S corporation.
E)  None of the above statements is correct.F) A) and D)
G) B) and E)

Question 5

The carryover period for the NOLs of a C corporation does not continue to run during S corporation years.

Accepted Answer

A) True 
 B)False

Question 6

Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis.
upward or
increase

Accepted Answer

The answer of Depletion in excess of basis in property...

Question 7

You are given the following facts about a 50% owner of an S corporation.Compute his ending stock basis.

Accepted Answer

A)  $80,950.
B)  $85,750.
C)  $100,100.
D)  $106,225.
E)  Some other amount.F) None of the above
G) B) and D)

Question 8

An estate may be a shareholder of an S corporation.

Accepted Answer

A) True 
 B)False

Question 9

Which tax provision does not apply to an S corporation?

Accepted Answer

A)  DPAD.
B)  Section 1244 stock.
C)  Penalty for failure to file.
D)  10% charitable contribution limitation.
E)  Estimated tax payments.F) C) and E)
G) C) and D)

Question 10

An S election is made on the shareholder's Form 2553.

Accepted Answer

A) True 
 B)False

Question 11

As with partnerships,the income,deductions,and tax credits of an S corporation ____________________ to the shareholders annually.
flow through

Accepted Answer

The answer of As with partnerships,the income,deductions,and tax credits of...

Question 12

If a resident alien shareholder moves outside the U.S.,the S election is terminated.

Accepted Answer

A) True 
 B)False

Question 13

An S corporation does not recognize a loss when distributing assets that are worth less than their basis.

Accepted Answer

A) True 
 B)False

Question 14

A distribution from OAA is taxable.

Accepted Answer

A) True 
 B)False

Question 15

Which statement is incorrect?

Accepted Answer

A)  S corporations are treated as corporations under state law.
B)  S corporations are treated as partnerships for Federal income tax purposes.
C)  Distributions of appreciated property are taxable to the S corporation.
D)  None of the above statements is incorrect.E) All of the above
F) C) and D)

Question 16

An S corporation recognizes a ____________________ on any distribution of appreciated property.
gain

Accepted Answer

The answer of An S corporation recognizes a ____________________ on...

Question 17

A calendar year C corporation reports a $41,000 NOL in 2012,but it elects S status for 2013 and generates an NOL of $30,000 in that year.At all times during 2013,the stock of the corporation was owned by the same 10 shareholders,each of whom owned 10% of the stock.Kris,one of the 10 shareholders,holds an S stock basis of $2,300 at the beginning of 2013.How much of the 2013 loss,if any,is deductible by Kris?

Accepted Answer

A)  $0.
B)  $2,300.
C)  $3,000.
D)  $7,100.E) A) and B)
F) B) and D)

Question 18

An S corporation that has total assets of at least $10 million on Schedule L at the end of the tax year must file a Schedule M-3.

Accepted Answer

A) True 
 B)False

Question 19

Any distribution of cash or property by a corporation that does not exceed the balance of AAA with respect to S stock during a post-termination transition period of approximately one year is applied against and reduces the basis of the S stock.

Accepted Answer

A) True 
 B)False

Question 20

Most IRAs cannot own stock in an S corporation.

Accepted Answer

A) True 
 B)False

Exam 12: S Corporations

Any distribution of cash or property by a corporation that does not exceed the balance of AAA with respect to S stock during a post-termination transition period of approximately one year is applied against and reduces the basis of the S stock.

Correct Answer
verified

An S corporation does not recognize a loss when distributing assets that are worth less than their basis.

Correct Answer
verified

Which statement is incorrect?

Correct Answer
verified

An S corporation that has total assets of at least $10 million on Schedule L at the end of the tax year must file a Schedule M-3.

Correct Answer
verified

An S election is made on the shareholder's Form 2553.

Correct Answer
verified

An S corporation recognizes a ____________________ on any distribution of appreciated property. gain

Correct Answer
verified

You are given the following facts about a 50% owner of an S corporation.Compute his ending stock basis.

Correct Answer
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Correct Answer
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Estela,Inc.,a calendar year S corporation,incurred the following items in 2013. Calculate Estela's nonseparately computed income.

Correct Answer
verified

If a resident alien shareholder moves outside the U.S.,the S election is terminated.

Correct Answer
verified

An estate may be a shareholder of an S corporation.

Correct Answer
verified

Which tax provision does not apply to an S corporation?

Correct Answer
verified

What statement is correct with respect to an S corporation?

Correct Answer
verified

Tax-exempt income is listed on Schedule ____________________ of Form 1120S. K

Correct Answer
verified

The carryover period for the NOLs of a C corporation does not continue to run during S corporation years.

Correct Answer
verified

Most IRAs cannot own stock in an S corporation.

Correct Answer
verified

Which item does not appear on Schedule K of Form 1120S?

Correct Answer
verified

As with partnerships,the income,deductions,and tax credits of an S corporation ____________________ to the shareholders annually. flow through

Correct Answer
verified

Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis. upward or increase

Correct Answer
verified

A distribution from OAA is taxable.

Correct Answer
verified

Exam 12: S Corporations

Any distribution of cash or property by a corporation that does not exceed the balance of AAA with respect to S stock during a post-termination transition period of approximately one year is applied against and reduces the basis of the S stock.

Correct AnswerverifiedShow Answer

An S corporation does not recognize a loss when distributing assets that are worth less than their basis.

Correct AnswerverifiedShow Answer

Which statement is incorrect?

Correct AnswerverifiedShow Answer

An S corporation that has total assets of at least $10 million on Schedule L at the end of the tax year must file a Schedule M-3.

Correct AnswerverifiedShow Answer

An S election is made on the shareholder's Form 2553.

Correct AnswerverifiedShow Answer

An S corporation recognizes a ____________________ on any distribution of appreciated property. gain

Correct AnswerverifiedShow Answer

You are given the following facts about a 50% owner of an S corporation.Compute his ending stock basis.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Estela,Inc.,a calendar year S corporation,incurred the following items in 2013. Calculate Estela's nonseparately computed income.

Correct AnswerverifiedShow Answer

If a resident alien shareholder moves outside the U.S.,the S election is terminated.

Correct AnswerverifiedShow Answer

An estate may be a shareholder of an S corporation.

Correct AnswerverifiedShow Answer

Which tax provision does not apply to an S corporation?

Correct AnswerverifiedShow Answer

What statement is correct with respect to an S corporation?

Correct AnswerverifiedShow Answer

Tax-exempt income is listed on Schedule ____________________ of Form 1120S. K

Correct AnswerverifiedShow Answer

The carryover period for the NOLs of a C corporation does not continue to run during S corporation years.

Correct AnswerverifiedShow Answer

Most IRAs cannot own stock in an S corporation.

Correct AnswerverifiedShow Answer

Which item does not appear on Schedule K of Form 1120S?

Correct AnswerverifiedShow Answer

As with partnerships,the income,deductions,and tax credits of an S corporation ____________________ to the shareholders annually. flow through

Correct AnswerverifiedShow Answer

Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis. upward or increase

Correct AnswerverifiedShow Answer

A distribution from OAA is taxable.

Correct AnswerverifiedShow Answer

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