Question 1. 1. Which of the following nominal rates does not apply to a C corporation? (Points : 1) |
15%
25%
34%
37% |

Question 2. 2. A corporation had capital gains of $4,000 and capital losses of $6,000 during the taxable year. How many of those capital losses can the company deduct on its tax return? (Points : 1) |
$0
$2,000
$4,000
$6,000 |

Question 3. 3. What is the gain or loss on the sale of an asset for $70,000 if the asset cost $200,000, had $140,000 of depreciation expense deducted from its cost, and has a major capital expenditure during its life of $30,000? (Points : 1) |
0
$10,000 gain
$20,000 loss
$20,000 gain |

Question 4. 4. What is the marginal tax rate for a C corporation with $200,000 of taxable income? (Points : 1) |
20%
34%
39%
38% |

Question 5. 5. A corporation can carry a net operating loss back (Points : 1) |
1 year
2 years
3 years
20 years |

Question 6. 6. John purchased a 40% interest in a partnership for $40,000 at the beginning of the year. At year-end, the partnership reported net income of $100,000 and distributed $10,000 cash to John. What is John's year-end basis? (Points : 1) |
$40,000
$130,000
$90,000
$70,000 |

Question 7. 7. Which of the following is not a characteristic of an S corporation? (Points : 1) |
It is a flow through entity
Owners increase their basis for debt taken by the S corporation
Owner's participate in limited tax-free fringe benefits
Owners increase their basis for gains and decrease basis for losses incurred by the S corporation |

Question 8. 8. A corporation can carry a net operating loss forward (Points : 1) |
1 year
2 years
15 years
20 years |

Question 9. 9. Losses (or sometimes termed negative income) can be grouped into three broad categories, which include all except which of the following? (Points : 1) |