Question 1

A corporation has a tax year ending December 31,2016.When is the due date for the corporate income tax return (with no extensions)?

Accepted Answer

For corporations with a tax year ending December 31, the due date for the corporate income tax return (Form 1120) is April 15 of the following year (without extensions). Therefore, the correct answer is B.

Question 2

Tara and Jeff wish to form TJ Corporation.They have determined that they need initial capitalization of $1,000,000.What tax issues should they consider when determining whether to issue stock only or some combination of debt and equity?

Accepted Answer

The answer of Tara and Jeff wish to form TJ...

Question 3

Which of the following statements regarding corporate tax return schedules is correct?

Accepted Answer

Schedule M-3 reconciles book-tax differences. Schedule M-1 reconciles book-tax differences related to retained earnings, while Schedule M-2 reconciles book-tax differences related to unappropriated retained earnings and other adjustments.

Question 4

Atomic Corporation is enjoying a very profitable year.The board of directors is considering paying either a bonus to the president of the corporation or an extra dividend to the shareholder.Shinil is both the president and the 100% shareholder.Which of the following statements is generally correct with respect to closely held corporations in Atomic's position?

Accepted Answer

The answer of Atomic Corporation is enjoying a very profitable...

Question 5

Which corporations are required to file a Schedule M-3?

Accepted Answer

C corporations with assets of $10,000,000 or more are required to file a Schedule M-3 with their tax return.

Question 6

A new start-up corporation is formed by three individuals.They expect the corporation will experience losses in its first few years.The shareholders will prefer to have the corporation taxed as a C corporation rather than making an S election.

Accepted Answer

The answer of A new start-up corporation is formed by...

Quiz 16: Corporations

A corporation has a tax year ending December 31,2016.When is the due date for the corporate income tax return (with no extensions) ?

Tara and Jeff wish to form TJ Corporation.They have determined that they need initial capitalization of $1,000,000.What tax issues should they consider when determining whether to issue stock only or some combination of debt and equity?

Which of the following statements regarding corporate tax return schedules is correct?

Which corporations are required to file a Schedule M-3?

A new start-up corporation is formed by three individuals.They expect the corporation will experience losses in its first few years.The shareholders will prefer to have the corporation taxed as a C corporation rather than making an S election.