1261. CHAPTER 12â??S CORPORATIONS Question TF #25 Depreciation recapture income is a Schedule K…

1261. CHAPTER 12â??S CORPORATIONS Question TF #25 Depreciation recapture income is a Schedule K…

1261. CHAPTER
12—S CORPORATIONS Question TF #25
Depreciation recapture income is a Schedule K item.

a.
True
b. False

1262. CHAPTER
12—S CORPORATIONS Question TF #26
A per-day, per-share allocation of flow-through S corporation items must be
used, unless the shareholder disposes of the entire interest in the entity.

a.
True
b. False

1263. CHAPTER
12—S CORPORATIONS Question TF #27
Any distribution of cash or property by a corporation that does not exceed the
balance of AAA with respect to the stock during a post-termination transition
period of approximately one year is applied against and reduces the adjusted
basis of the stock.

a.
True
b. False

1264. CHAPTER
12—S CORPORATIONS Question TF #28
All tax preference items flow through the S corporation, to be included in the
shareholders’ AMT calculations.

a.
True
b. False

1265. CHAPTER
12—S CORPORATIONS Question TF #29
An S shareholder who dies during the corporate tax year must report his or her
share of the pro rata income (or loss) up to the date of death on the final
individual tax return.

a.
True
b. False

1266. CHAPTER
12—S CORPORATIONS Question TF #30
A capital loss allocated to a shareholder always reduces the other adjustments account.

a.
True
b. False

1267. CHAPTER
12—S CORPORATIONS Question TF #31
Tax-exempt income is not separately stated on Schedule K of Form 1120S.

a.
True
b. False

1268. CHAPTER
12—S CORPORATIONS Question TF #32
A distribution from OAA is taxable.

a.
True
b. False

1269. CHAPTER
12—S CORPORATIONS Question TF #33
An item that appears in the “Other Adjustments Account†affects stock basis,
but not AAA, such as tax-exempt life insurance proceeds.

a.
True
b. False

1270. CHAPTER
12—S CORPORATIONS Question TF #34
An S corporation that has total assets of at least $5 million on Schedule L at
the end of the tax year must file a Schedule M-3.

a.
True
b. False

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