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ACC 4250 Corporate Assignment Part I Yves Bofossa True or False 1. It is possible for a trust managed by a trustee to be treated as a corporation for income tax purposes. Answer: False 2. If the taxpayer creates a legal corporation under state law, the government cannot disregard the entity and tax the taxpayer on the income. Answer: False 3. Generally, corporate taxable income is more closely related to accounting income than individual taxable income is related to accounting income. Answer: False 4. Corporations should try to reclassify initial expenditures as expenses other than organization costs because organization costs do not give rise to any tax benefit. Answer: False 5. A corporation is not allowed a…show more content…
Answer: True 15. An individual receiving both stock and short term notes for appreciated property has no recognized gain because of &351. Answer: True 16. Section 351 encompasses non simultaneous transfers provided they are part of one transaction. Answer: True 17. Assumption of all debt by a corporation is included under the non-recognition provision of &351. Answer: True 18. A corporation does not recognize gain on the transfer of its own stock in exchange for money or other property. Answer: True 19. In any 351 transfer, the corporation’s basis in the property is the same as the transferor’s basis. Answer: True 20. A corporation does not recognize income as the result of a contribution to capital, even though it does not issue any stock. Answer: True Multiple choice 21. Answer: B 22. Answer: C 23. Answer: C 24. Answer: D 25. Answer: C 26. Answer: E 27. Answer: D 28. Answer: B 29. Answer: C 30. Answer: A 31. Answer: D 32. Answer: E 33. Answer: C 34. Answer: B 35. Answer: C 36. Answer: E 37. Answer: E 38. Answer: B 39. Answer: C 40. Answer: A 41. Answer: B 42. Answer: B 43. Answer: A 44. Answer: B 45. Answer: C 46. Answer: A 47. Answer: A 48. Answer: E 49. Answer: B 50. Answer: D Part 2 Required a) the calculation for depreciation and the tax loss for
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