PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Chapter 18, Problem 7QPD
To determine
Explain the reason for which IRS might prefer to audit NK Corporation rather than CS Corporation.
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Which of the following statements is incorrect?
A calendar year corporation must file its tax return no later than March 15 of the following year.
C corporations must annually file a Form 1120 tax return.
A corporation with average annual gross receipts of $30 million must use the accrual basis of accounting.
A corporation can choose the fiscal year-end of its choice when it files its first tax return without approval of the IRS.
Which of the following statements is false?
A. A corporation must file a Federal income tax return even if it has no taxable income for the year.
B. Dividend received deduction is calculated as the dividend received times deduction percentage.
C. A corporation cannot deduct net capital losses against its operating income.
D. A C corporation with taxable income of $100,000 in the current year will have a tax liability of $21,000.
E. Schedule M-1 is used to reconcile net income as computed for financial accounting purposes with taxable income reported on the corporation's income tax return.
XYZ is a calendar-year corporation that began business on January 1, 2021. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6.
XYZ corporation Income statement For current year
Book Income
Revenue from sales
$ 40,400,000
Cost of Goods Sold
(27,270,000)
Gross profit
$ 13,130,000
Other income:
Income from investment in corporate stock
300,0001
Interest income
21,6002
Capital gains (losses)
(4,000)
Gain or loss from disposition of fixed assets
3,0003
Miscellaneous income
50,000
Gross Income
$ 13,500,600
Expenses:
Compensation
(7,504,000)4
Stock option compensation
(204,000)5
Advertising
(1,354,000)
Repairs and Maintenance
(77,000)
Rent
(24,000)
Bad Debt expense
(43,000)6
Depreciation
(1,450,000)7
Warranty expenses
(74,000)8
Charitable donations
(500,000)9
Meals (all at restaurants)
(18,400)
Goodwill impairment…
Chapter 18 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 18 - Prob. 1QPDCh. 18 - Prob. 2QPDCh. 18 - Prob. 3QPDCh. 18 - Prob. 4QPDCh. 18 - Prob. 5QPDCh. 18 - Prob. 6QPDCh. 18 - Prob. 7QPDCh. 18 - Prob. 8QPDCh. 18 - Prob. 9QPDCh. 18 - Prob. 10QPD
Ch. 18 - Prob. 11QPDCh. 18 - Prob. 12QPDCh. 18 - Prob. 13QPDCh. 18 - Prob. 14QPDCh. 18 - Prob. 1APCh. 18 - Prob. 2APCh. 18 - Prob. 3APCh. 18 - Prob. 4APCh. 18 - Prob. 5APCh. 18 - Prob. 6APCh. 18 - Prob. 7APCh. 18 - Prob. 8APCh. 18 - Prob. 9APCh. 18 - Prob. 10APCh. 18 - Prob. 11APCh. 18 - Prob. 12APCh. 18 - A revenue agent determined that Ms. Owen underpaid...Ch. 18 - Prob. 14APCh. 18 - Prob. 15APCh. 18 - Prob. 16APCh. 18 - Prob. 17APCh. 18 - Prob. 18APCh. 18 - Prob. 19APCh. 18 - Prob. 20APCh. 18 - Prob. 22APCh. 18 - Prob. 8IRPCh. 18 - Prob. 9IRPCh. 18 - Prob. 1RPCh. 18 - Prob. 2RPCh. 18 - Prob. 1TPCCh. 18 - Prob. 2TPC
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