51 musketeer corporation has the following income and expense items during the curre 4312680

51 musketeer corporation has the following income and expense items during the curre 4312680

51) Musketeer Corporation has the following income and expense items during the current year:

Net income from operations (before dividend income)

$ 120,000

Dividends from 10% owned corporations

240,000

The allowed dividends-received deduction is

A) $ 120,000.

B) $ 168,000.

C) $192,000.

D) $240,000.

52) Jenkins Corporation has the following income and expense items during the current year:

Net loss from operations (before dividend income)

($ 25,000)

Dividends from 25% owned corporations

150,000

The allowed dividends-received deduction is

A) $100,000.

B) $120,000.

C) $125,000.

D) $150,000.

53) June Corporation has the following income and expense items during the current year:

Net loss from operations

($ 140,000)

Dividends received 25% owned corporations

240,000

The allowed dividends-received deduction is

A) $ 80,000.

B) $168,000.

C) $192,000.

D) $240,000.

54) For this tax year, Madison Corporation had taxable income of $80,000 before using any of the net operating loss from the previous year. Madison has never elected to forgo the carryback of its losses since incorporation five years ago. Madison's books and records reflect the following income (loss) since its incorporation.

5 years ago

$20,000

4 years ago

($35,000)

3 years ago

$10,000

2 years ago

$25,000

last year

($35,000)

What amount of taxable income (loss) should Madison report on its current tax return?

A) $45,000

B) $65,000

C) $70,000

D) $80,000

55) With respect to charitable contributions by corporations, all of the following rules apply with the exception of

A) unused contributions are carried forward 5 years.

B) the amount of the contribution deduction is always adjusted basis of the property contributed.

C) contributions are limited to 10% of taxable income, computed without regard to the charitable contribution deduction, NOL and capital loss carrybacks, or the dividend-received deduction.

D) accrual-basis corporations may accrue a contribution deduction in the year preceding payment if the board of directors authorizes such payment prior to the end of the tax year, and the payment is actually made within two and one-half months following the end of the tax year.

56) If a corporation's charitable contributions exceed the deduction limitation in a particular year, the excess

A) is not deductible in any future year.

B) becomes a carryover to a maximum of five succeeding years.

C) may be carried back to the third preceding year.

D) is carried over indefinitely.

57) Louisiana Land Corporation reported the following results for the current year:

Taxable income before the dividends-received deduction and before the charitable contributions deduction

320,000

Charitable contributions

60,000

Dividends received deduction

20,000

What is the amount of the taxable income for the current year?

A) $240,000

B) $268,000

C) $294,000

D) $300,000

58) Corey Corporation reported the following results for the current year:

Taxable income before the dividends-received deduction and before the charitable contributions deduction

$160,000

Charitable contributions

30,000

Dividends received deduction

10,000

What is the amount of the charitable contribution carryover to next year?

A) $0

B) $14,000

C) $16,000

D) $30,000

59) Charades Corporation is a publicly held company listed on the New York Stock Exchange. During the current year, its chief executive officer, Samantha Chen, receives the following compensation from the corporation: salary, $1,500,000; commissions based on sales generated by Samantha $200,000; payments to a qualified pension plan, $30,000; and tax-free fringe benefits, $20,000. What is the total amount that Charades may deduct?

A) $1,000,000

B) $1,250,000

C) $1,500,000

D) $1,750,000

60) Charades Corporation is a publicly held company listed on the New York Stock Exchange. During the current year, its chief executive officer, Samantha Chen, receives the following compensation from the corporation: salary, $1,500,000; commissions based on sales generated by Samantha, $200,000; payments to a qualified pension plan, $30,000; and tax-free fringe benefits, $20,000. What is the total amount taxable to Samantha?

A) $1,000,000

B) $1,200,000

C) $1,500,000

D) $1,700,000

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