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- Which of the following entities is taxed as a C corporation and will file Form 1120, U.S. Corporation Income Tax Return? (a) Kenneth, Inc., a pass-through entity taxed at the shareholder level. (b) Plushpuppies, Inc., which has made a valid subchapter S election. (c) Minors Financial, an unincorporated organization formed in 1995. Minors has been filing as a corporation since 1995. (d) Rescue Dogs, Inc., which has been recognized as a tax-exempt organizationThe S-corporation is a flow-through business entity under Subchapter S of the IRC. Go to the IRS websiteLinks to an external site. and search for a corporation's tax return (Form 1120) and an S-corporation tax return (Form 1120-S). Discuss one similarity or difference that you notice between the two returns. In that discussion, include why the similarity or difference exists.In appropriate situations the IRS may assert That the Corporation be disregarded as a sham or nominee That income reported by the Corporation belongs on the shareholder’s personal Form 1040 Schedule C under the assignment of income principles. Income is reallocated under §482 to unrelated organizations Tax benefits may be denied under §269 if control of a Corporation is acquired for a purpose of avoiding federal income tax. All of the above All of the above except C All of the above except D All of the above except C & D
- 9. Under Section 22 (B) of the Tax Code, the term "corporation" does not include: Associations Joint accounts (cuentas en participation) Joint-stock companies General professional partnershipsTo qualify as a pass-through entity for U.S. corporate income tax, a REIT must be all of the following EXCEPT a.structured as a corporation, trust, or association. b.have transferable shares or certificates of interest. c.managed by a board of directors or trustees. d.jointly owned by less than 100 persons.What is the deadline by which a c corporation must file a tax return
- Which of the following statements regarding political contributions made by a corporation is CORRECT? a. Political contributions are allowed as a deduction in the computation of taxable income, therefore they are deducted on Schedule 2. b. Corporations receive a tax credit equal to 15% of political contributions made in the year. O c. Political contributions are not allowed as a deduction in the computation of business income, therefore they are added back on Schedule 1. O d. The total deduction for political contributions is limited to 75% of the corporation's net income in the year.Which of the following is wrong? Exempt corporations are subject to income tax on their income from unrelated activities. Government-Owned and Controlled Corporations are subject to regular corporate income tax. Exempt corporations who filed late are not subject to penalties because they have no tax due. None of the above.You must file an IRS form 2553 to tell the IRS that you want to be an S Corporation or in other words to "elect S Corporation status" otherwise you will be a C Corporation. Select one: O True O False
- Which of the following characteristics best describes a corporation? business with a single owner Is not taxed Stockholders not personally liable for entity’s debts Not a separate taxable entity1. All associations or corporations enumerated under Sec. 30 of the NIRC on exempt association are automatically exempt from income tax. 2. Exemption from tax is privilege viewed with disfavor by the state. As such a taxpayer, to become exempt, must comply with the requirements for tax exemption by laws or regulations. A= 1st statement is true, second statement is false. B=1st statement is false, second statement is true. C= Both statements are false. D= Both statement are true. OA O O D PA C corporation can be described as: (a) A business that is separate and distinct from its owners, allowing the owners to conduct business while limiting their personal liability. (b) A business association defined by federal statute. (c) A legal entity that has more than one shareholder. (d) A type of corporation where owners have limited liability, and income, expenses, and deductions flow through to the shareholders and are taxed only at the shareholder level.