Placeholder

ACCT 424 DeVry Federal Tax Accounting II Entire Course

$140.00

Quantity:

Product Description

ACCT 424 DeVry Federal Tax Accounting II Entire Course

ACCT 424 DeVry Federal Tax Accounting II Entire Course

ACCT424

 

ACCT 424 DeVry Week 2 Discussion 1 Latest

Just when you thought you had the calculation of a corporation’s taxable income down (last week), Congress throws us a few more curves and, in some instances, an entirely different way of calculating a corporation’s taxable income! Chapter 3 introduces us to two of these big special situations: the PAD and the corporate AMT. Let’s start at the beginning: What are they, and why are they here? Please enlighten us!

ACCT 424 DeVry Week 2 Discussion 2 Latest

Workout Room (graded)

Think of the workout room as a classroom chalkboard that will be used to discuss and work on problems each week. So, who will be the first brave student? Please start with Chapter 3, Problem 33 on page 3-36.

ACCT 424 DeVry Week 3 Discussion 1 Latest

Indeed, sometimes 1 plus 1 does equal 1—at least in the merging and reorganization of corporations. As we see in the news almost weekly, one company agrees to purchase another, or two companies decide to merge. You get the idea. What are the tax consequences of such transactions (Tax-free reorganizations)

ACCT 424 DeVry Week 3 Discussion 2 Latest

Think of the workout room as a classroom chalkboard that will be used to discuss and work on problems each week. So who will be the first brave student? Please start with Chapter 7, problem 26 on page 7-38.

ACCT 424 DeVry Week 4 Discussion 1 Latest

When Congress enacted Subchapter S of the Code, it intended to give a certain group of corporations a break from the burden of double taxation. Provide an example of a limitation on what type of Corporations cannot elect S status. Find and post the text of the Code section that provides the limitation. (We might as well get a look at a verbatim Code section or two during the course of this class!)

ACCT 424 DeVry Week 4 Discussion 2 Latest

Think of the workout room as a classroom chalkboard that will be used to discuss and work on problems each week. So who will be the first brave student? Please start with Chapter 12, problem 24 on page 12-33 (Kitsch Ltd). Additional questions will follow as we get into the week. Begin posting from Monday, March 20, 2017.

ACCT 424 DeVry Week 5 Discussion 1 Latest

Choosing a partnership as a tax entity has nontax consequences that are different from those that arise from choosing the corporate form. Many things can cause a partnership to go sour—and many of them don’t have a thing to do with taxes. What are some of the more significant nontax and tax consequences of choosing the partnership form? Which do you think is the most important? Why?

ACCT 424 DeVry Week 5 Discussion 2 Latest

Think of the workout room as a classroom chalkboard that will be used to discuss and work on problems each week. So who will be the first brave student? Please start with Chapter 10, Problem 30 on page 10-49. Other questions will follow shortly.

ACCT 424 DeVry Week 6 Discussion 1 Latest

Every tax system has two major components: the thing that is being taxed (otherwise known as the tax base) and the rate at which it is taxed. With the income tax, the base is income. Contrary to what congress people might have you believe, however, the base of the death tax is not death. Rather, it’s the size of the decedent’s estate or the gross estate. How is this determined and, in particular, what is the starting point for this determination?

ACCT 424 DeVry Week 6 Discussion 2 Latest

This we will be trying to work out a number of questions relating to exam-type expectations. Think of the workout room as a classroom chalkboard that will be used to discuss and work on problems each week. So who will be the first brave student? Please start with Chapter 18, Problem 36 on page 18-38. Follow up questions

ACCT 424 DeVry Week 7 Discussion 1 Latest

Is the estate tax a worthwhile tax? Is it a good tax or a bad tax? Be sure to include the appropriate social and economic ramifications.

ACCT 424 DeVry Week 7 Discussion 2 Latest

Think of the workout room as a classroom chalkboard that will be used to discuss and work on problems each week. So who will be the first brave student? Please start with Chapter 20, Problems 20 on page 20-34. See you soon!!

ACCT 424 DeVry Week 8 Discussion Latest

Responses are listed below in the following order: response, author and the date and time the response is posted.

ACCT 424 DeVry Week 3 Hands On Exercise

Week 3 Hands On Exercise

ACCT 424 DeVry Week 4 Hands On Exercise

Week 4 Hands On Exercise

ACCT 424 DeVry Week 5 Hands On Exercise

Week 5 Hands On Exercise

ACCT 424 DeVry Week 6 Hands On Exercise

Week 6 Hands On Exercise

ACCT 424 DeVry Week 7 Hands On Exercise

Week 7 Hands On Exercise

ACCT 424 DeVry Week 1 Quiz Latest

Question 1. Question : (TCO 2) Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year. The partnership did not make any distributions, and the corporation did not pay any dividends. How much income must Barry report from these businesses?

  • $0 income from the partnership and $0 income from the corporation
  • $0 income from the partnership and $90,000 income from the corporation
  • $90,000 income from the partnership and $0 income from the corporation
  • $90,000 income from the partnership and $90,000 income from the corporation
  • None of the above

Question 2. Question : (TCO 2) Pelican Inc., a closely held corporation (not a PSC), has a $350,000 loss from a passive activity, $135,000 of active income, and $160,000 of portfolio income. How much is Pelican’s taxable income?

  • ($55,000)
  • $0
  • $135,000
  • $295,000
  • $160,000

Question 3. Question : (TCO 2) Copper Corporation owns stock in Bronze Corporation and has net operating income of $900,000 for the year. Bronze Corporation pays Copper a dividend of $150,000. Which amount of dividends received deduction may Copper claim if it owns 65% of Bronze stock (assuming Copper’s dividends received deduction is not limited by its taxable income)?

  • $0
  • $105,000
  • $120,000
  • $150,000
  • None of the above

Question 4. Question : (TCO 1) Jane and Walt form Yellow Corporation. Jane transfers equipment worth $950,000 (basis of $200,000) and cash of $50,000 to Yellow Corporation for 50% of its stock. Walt transfers a building and land worth $1,050,000 (basis of $400,000) for 50% of Yellow’s stock and $50,000 in cash.

  • Jane recognizes no gain; Walt recognizes gain of $50,000.
  • Jane recognizes a gain of $50,000; Walt has no gain.
  • Neither Jane nor Walt recognizes gain.
  • Jane recognizes a gain of $750,000; Walt recognizes gain of $650,000.
  • None of the above

Question 5. Question : (TCO 1) Mary transfers a building (adjusted basis of $15,000 and fair market value of $90,000) to White Corporation. In return, Mary receives 80% of White Corporation’s stock (worth $65,000) and an automobile (fair market value of $5,000). In addition, there is an outstanding mortgage of $20,000 (taken out 15 years ago) on the building, which White Corporation assumes. With respect to this transaction,

  • Mary’s recognized gain is $10,000.
  • Mary’s recognized gain is $5,000.
  • Mary has no recognized gain.
  • White Corporation’s basis in the building is $15,000.
  • None of the above

Question 6. Question : (TCO 1) Kim owns 100% of the stock of Cardinal Corporation. In the current year, Kim transfers an installment obligation, tax basis of $30,000 and fair market value of $200,000, for additional stock in Cardinal worth $200,000.

  • Kim recognizes no taxable gain on the transfer.
  • Kim has a taxable gain of $170,000.
  • Kim has a taxable gain of $180,000.
  • Kim has a basis of $200,000 in the additional stock she received in Cardinal Corporation.
  • None of the above

Question 7. Question : (TCO 1) Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000, for 50 shares in Crow Corporation. Mary transfers property, basis of $80,000 and value of $1,480,000, and agrees to serve as manager of Crow for 1 year; in return, Mary receives 50 shares of Crow. The value of Mary’s services is $120,000. With respect to the transfers,

  • Mary will not recognize gain or income.
  • Earl will recognize a gain of $1,400,000.
  • Crow Corporation has a basis of $1,480,000 in the property it received from Mary.
  • Crow will have a business deduction of $120,000 for the value of the services Mary will render.
  • None of the above

Question 8. Question : (TCO 11) Which statement, if any, does not reflect the rules governing the negligence accuracy-related penalty?

  • The penalty rate is 20%.
  • The penalty is imposed only on the part of the deficiency attributable to negligence.
  • The penalty applies to all federal taxes, except when fraud is involved.
  • The penalty is waived if the taxpayer uses Form 8275 to disclose a return position that is reasonable though contrary to the IRS position.
  • None of the above

Question 9. Question : (TCO 11) The rules of Circular 230 need not be followed by

  • an attorney.
  • a CPA.
  • a Walmart cashier who e-files 15 tax returns for her paying clients per filing season.
  • an enrolled agent.
  • All of the above

Question 10. Question : (TCO 11) Which statement correctly reflects the rules governing interest on an individual’s federal tax deficiency and a claim for refund?

  • The IRS has full discretion in determining the rate that will apply.
  • The simple interest method for calculating interest is used.
  • For noncorporate taxpayers, the rate of interest for assessments is the same as the rate of interest for refunds.
  • The IRS must adjust the rate of interest semiannually.
  • None of the above

ACCT 424 DeVry Week 2 Quiz Latest

Question 1. Question : (TCO 2) Which, if any, is a characteristic of the PAD?

  • Not applicable in situations involving S corporations
  • Applicable only to manufactured goods that are exported from the United States
  • Can never apply when the rendition of personal services is involved
  • Can sometimes apply when some of the components of a product are manufactured in foreign countries
  • None of the above

Question 2. Question : (TCO 2) Bacon Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kirby Corporation for $1,000. Kirby incurs TV advertising expenses of $300 and sells the machine by phone order for $1,700. If Bacon and Kirby corporations are members of an expanded affiliated group (EAG), their QPAI is

  • $30.
  • $600.
  • $1,000.
  • $1,600.

Question 3. Question : (TCO 2) Gem Corporation, a calendar-year taxpayer, has AMTI of $6 million (before adjustment for adjusted current earnings). If Gem Corporation’s ACE is $15 million, its tentative minimum tax is

  • $4.2 million.
  • $3.45 million.
  • $2.55 million.
  • $2.02 million.
  • None of the above

Question 4. Question : (TCO 3) Swan, a calendar-year corporation, has a deficit in current E & P of $200,000 and a $580,000 positive balance in accumulated E & P. If Swan determines that a $1 million distribution to its shareholders is appropriate at some point during the year, which is the maximum amount of the distribution that could potentially be treated as a dividend?

  • $0
  • $380,000
  • $480,000
  • $580,000
  • None of the above

Question 5. Question : (TCO 3) Balsa Corporation distributes land with a fair market value of $75,000 and an adjusted basis of $25,000. The land is subject to a liability of $30,000. Which is the total effect of the distribution on the E & P of Balsa?

  • Balsa’s E & P is neither increased nor decreased.
  • Balsa’s E & P is increased by $5,000.
  • Balsa’s E & P is increased by $50,000.
  • Balsa’s E & P is reduced by $75,000.
  • None of the above

Question 6. Question : (TCO 3) Which statement about property distributions is false?

  • When the basis of distributed property is greater than its fair market value, a deficit may be created in E & P.
  • When the basis of distributed property is less than its fair market value, the distributing corporation recognizes gain.
  • When the basis of distributed property is greater than its fair market value, the distributing corporation does not recognize loss.
  • The amount of a distribution received by a shareholder is measured by using the property’s fair market value.
  • None of the above

Question 7. Question : (TCO 3) Walnut Corporation, a calendar-year taxpayer, has taxable income of $110,000 for the year. In reviewing Walnut’s financial records, you discover that the following occurred this year.

Federal income taxes paid: $25,000

Net operating loss carry forward deducted currently: $25,000

Gain recognized this year on an installment sale from a prior year: $12,000

Depreciation deducted on tax return (ADS depreciation would have been $8,000): $15,000

Interest income from Wisconsin state bonds: $37,000

Walnut Corporation’s current E & P is

  • $73,000.
  • $138,000.
  • $142,000.
  • $166,000.
  • None of the above

Question 8. Question : (TCO 4) Five years ago, Eleanor transferred property she had used in her sole proprietorship to Blue Corporation for 100 shares of Blue Corporation in a transaction that qualified under § 351. The assets had a tax basis to her of $200,000 and a fair market value of $350,000 on the date of the transfer. In the current year, Blue Corporation (E & P of $1 million) redeems 30 shares from Eleanor for $225,000 in a transaction that does not qualify for sale or exchange treatment. With respect to the redemption, Eleanor will have a

  • $165,000 dividend.
  • $165,000 capital gain.
  • $225,000 dividend.
  • $225,000 capital gain.
  • None of the above

Question 9. Question : (TCO 4) Cardinal Corporation has 1,000 shares of common stock outstanding. John owns 300 of the shares, John’s grandfather owns 200 shares, John’s daughter owns 300 shares, and Redbird Corporation owns 200 shares. John owns 60% of the stock in Redbird Corporation. How many shares is John deemed to own in Cardinal Corporation under the attribution rules of 318?

  • 300
  • 600
  • 720
  • 800
  • None of the above

Question 10. Question : (TCO 4) In the current year, Dove Corporation (E & P of $1 million) distributes all of its property in a complete liquidation. Alexandra, a shareholder, receives land having a fair market value of $300,000. Dove Corporation had purchased the land as an investment 3 years previously for $375,000, and the land was distributed subject to a $270,000 liability. Alexandra took the land subject to the $270,000 liability. Which is Alexandra’s basis in the land?

  • $375,000
  • $300,000
  • $270,000
  • $30,000
  • None of the above

ACCT 424 DeVry Week 3 Quiz Latest

Question 4. Question : (TCO 5) Julio exchanged his $350,000 of bonds and $75,000 of stock (basis $10,000) in Calcite Corporation for $50,000 of stock and $375,000 in bonds in Mercury Corporation. Which is Julio’s recognized gain or loss, and which is Julio’s basis in his stock?

  • Julio has a recognized gain of $25,000 and a basis in his stock of $10,000.
  • Julio has a recognized gain of $25,000 and a basis in his stock of $40,000.
  • Julio has a recognized loss of $25,000 and a basis in his stock of $40,000.
  • Julio has a realized loss of $25,000, no recognized loss, and a basis in his stock of $40,000.
  • None of the above

Question 5. Question : (TCO 5) Jade Corporation merged into Fluorite Corporation 2 years ago. At the time of the merger, Jade had an E & P deficit of $350,000 and Fluorite had a positive E & P of $300,000. The prior 2 years have resulted in a positive E & P of $100,000. Despite having a negative E & P of $30,000 for the year, Fluorite makes a distribution to its shareholders of $370,000. How is the distribution taxed to the shareholders?

  • $370,000 treated as a return of capital
  • $20,000 taxed as a dividend and $350,000 treated as a return of capital
  • $300,000 taxed as a dividend and $70,000 treated as a return of capital
  • $370,000 taxed as a dividend
  • None of the above

Question 8. Question : (TCO 6) ParentCo’s separate taxable income was $350,000, and SubCo’s was $225,000. Consolidated taxable income before contributions was $400,000. Charitable contributions made by the affiliated group included $15,000 by ParentCo and $20,000 by SubCo. Compute the group’s charitable contribution deduction.

  • $57,500
  • $40,000
  • $35,000
  • $0
  • Some other amount

ACCT 424 DeVry Week 4 Midterm Exam Latest

Page: 1

Question 1. Question : (TCO 2) For the current year, Kelly Corp. had net income per books of $300,000 before the provision for federal income taxes. Included in the net income were the following items:

Dividend income from an unaffiliated domestic taxable corporation (taxable income limitation does not apply and there is no portfolio indebtedness) $50,000.

Bad debt expense (represents the increase in the allowance for doubtful accounts) $80,000.

Assuming no bad debt was written off, what is Kelly’s taxable income for the current year?

  • $250,000
  • $330,000
  • $345,000
  • $380,000

Question 2. Question : (TCO 2) Webster, a C corporation, has $70,000 in accumulated and no current earnings and profits. Webster distributed $20,000 cash plus property with an adjusted basis and fair market value of $60,000 to its shareholders. What amount should the shareholders report as dividend income?

  • $20,000
  • $60,000
  • $70,000
  • $80,000

Question 3. Question : (TCO 1) Sarah transfers property (basis of $120,000 and fair market value of $400,000) to Designer Corporation for 80% of its stock (worth $350,000) and a long-term note (worth $50,000), executed by Designer Corporation and made payable to Sarah. As a result of the transfer

  • Sarah recognizes no gain.
  • Sarah recognizes a gain of $230,000.
  • Sarah recognizes a gain of $280,000.
  • Sarah recognizes a gain of $50,000.
  • None of the above

Question 4. Question : (TCO 1) Rachel and Robert, mother and son, form Brook Corporation with the following investments: cash by Rachel of $55,000 and land by Robert (basis of $35,000 and fair market value of $45,000). Brook Corporation issues 200 shares of stock, 100 each to Rachel and Robert. Thus, each receives stock in Brook Corp. worth $50,000.

  • § 351 cannot apply, because Rachel should have received 110 shares instead of only 100.
  • As a result of the transfer, Robert recognizes a gain of $10,000.
  • Robert’s basis in the stock of Brook Corporation is $50,000.
  • § 351 may apply, because stock need not be issued to Rachel and Robert in proportion to the value of the property transferred.
  • None of the above

Question 5. Question : (TCO 1) William and Kate form Spring Corporation. William transfers property (basis of $20,000 and value of $300,000) for 100 shares in Spring Corporation. Kate transfers property (basis of $40,000 and value of $280,000) and provides legal services in organizing the corporation. The value of her services is $20,000. In return, Kate receives 100 shares in Spring Corporation. With respect to the transfers, _____.

  • William will recognize gain
  • Kate will not recognize any gain or income
  • Spring Corporation will have a basis of $280,000 in the property it acquired from Madison
  • Spring Corporation will have a business deduction of $20,000
  • None of the above

Question 6. Question : (TCO 11) Candace, a calendar-year taxpayer subject to a 35% marginal tax rate, claimed a charitable contribution deduction of $250,000 for a sculpture that the IRS later valued at $200,000. Which is the applicable overvaluation penalty?

  • $17,500
  • $14,000
  • $3,500
  • $0

Question 7. Question : (TCO 11) The penalty for substantial understatement of tax liability does not apply if _____.

  • the taxpayer has substantial authority for the treatment taken on the tax return
  • the relevant facts affecting the treatment are adequately disclosed in the return or on Form 8275
  • the IRS failed to meet its burden of proof in showing the taxpayer’s error
  • All of the above
  • None of the above

Question 8. Question : (TCO 2) Diamond Inc. has taxable income of $13 million this year. Which is the maximum DPAD tax savings for this C corporation?

  • $132,600
  • $265,200
  • $273,000
  • $409,500
  • None of the above

Question 9. Question : (TCO 2) Kent Corp. is a calendar-year accrual basis C corporation. In Year 1, Kent made a nonliquidating distribution of property with an adjusted basis of $150,000 and a fair market value of $200,000 to Reed, its sole shareholder. The following information pertains to Kent.

Reed’s basis in Kent stock at January 1, Year 1 $500,000 Accumulated earnings and profits at January 1, Year 1 $125,000. Current earnings and profits for Year 1 (from operations) $60,000. What was taxable as dividend income to Reed for Year 1?

  • $60,000
  • $150,000
  • $185,000
  • $200,000

Question 10. Question : (TCO 3) As of January 1, Boulder Corporation has a deficit in accumulated E & P of $37,500. For the tax year, current E & P (all of which accrued ratably) is $20,000 (prior to any distribution). On July 1, Boulder Corporation distributes $25,000 to its sole, noncorporate shareholder. The amount of the distribution that is a dividend is _____.

  • $0
  • $20,000
  • $25,000
  • $37,500
  • None of the above

Question 11. Question : (TCO 3) Oak Corporation, a calendar-year taxpayer, has taxable income of $110,000 for the year. In reviewing Oak’s financial records, you discover the following occurred this year.

Federal income taxes paid: $25,000

Net operating loss carryforward deducted currently: $25,000

Gain recognized this year on an installment sale from a prior year: $12,000

Depreciation deducted on tax return (ADS depreciation would have been $8,000): $15,000

Interest income from Illinois state bonds: $37,000

Oak Corporation’s current E & P is _____.

  • $73,000
  • $138,000
  • $142,000
  • $166,000
  • None of the above

Question 12. Question : (TCO 3) Which statement is false?

  • Most countries that trade with the United States do not impose a double tax on dividends.
  • Tax proposals that include corporate integration would eliminate the double tax on dividends.
  • The double tax on dividends may make corporations more financially vulnerable during economic downturns.
  • Many of the arguments in support of the double tax on dividends relate to fairness.
  • None of the above

Question 13. Question : (TCO 4) Five years ago, Rachel transferred property she had used in her sole proprietorship to Green Corporation for 100 shares of Green Corporation in a transaction that qualified under § 351. The assets had a tax basis to her of $200,000, and a fair market value of $350,000, on the date of the transfer. In the current year, Green Corporation (E & P of $1 million) redeems 30 shares from Rachel for $225,000 in a transaction that qualifies for sale or exchange treatment. With respect to the redemption, Rachel will have a _____.

  • $165,000 dividend
  • $165,000 capital gain
  • $225,000 dividend
  • $225,000 capital gain
  • None of the above

Question 14. Question : (TCO 4) Cook Corporation has 1,000 shares of stock outstanding. Harold owns 250 shares, Harold’s father owns 150 shares, Harold’s brother owns 250 shares, and Harold’s son owns 50 shares. Blue Corporation owns the other 300 shares in Cook Corporation. Harold owns 60% of the stock in Blue Corporation. Applying the § 318 stock attribution rules, how many shares does Harold own in Cook Corporation?

  • 250
  • 400
  • 450
  • 630
  • None of the above

Question 15. Question : (TCO 5) Pursuant to a plan of corporate reorganization adopted in the current year, Thomas exchanged 1,000 shares of Cyndy Corporation common stock which he had purchased for $325,000 for 1,200 shares of Play Corporation common stock that have a fair market value of $663,000. As a result of the exchange, Thomas’ recognized gain and his basis in the Play stock are

  • no recognized gain and basis of $325,000.
  • no recognized gain and basis of $663,000.
  • recognized gain of $338,000 and basis of $663,000.
  • None of the above

Question 16. Question : (TCO 5) Shelf Corporation transfers all of its assets, basis of $440,000 and FMV of $600,000, to Teal Corporation. Shelf receives voting stock in Teal valued at $500,000 and Teal assumes $100,000 of Shelf’s liabilities. Shelf distributes the Teal voting stock to its shareholders and is liquidated. Which, if any, of the following statements regarding this transaction is correct?

  • Shelf has a realized gain of $60,000 and a recognized gain of $0.
  • Shelf has a realized gain of $60,000 and a recognized gain of $100,000.
  • Shelf has a realized gain of $160,000 and a recognized gain of $0.
  • None of the above statements is correct.

Question 17. Question : (TCO 5) An equity structure shift cannot occur with which tax-free reorganization?

  • Type A
  • Type B
  • Type C
  • Type G
  • None of the above

Question 18. Question : (TCO 6) How are the members of a consolidated group affected by computations related to E & P?

  • E & P is computed solely on a consolidated basis.
  • Consolidated E & P is computed as the sum of the E & P balances of each of the group members.
  • Members E & P balances are frozen as long as the consolidation election is in place.
  • Each member keeps its own E & P account.

Question 19. Question : (TCO 6) Which corporation is not eligible for consolidated return status?

  • Tax-exempt charitable corporations
  • Insurance companies
  • Corporations formed outside the United States
  • Partnerships
  • All of the above

Question 20. Question : (TCO 6) Which tax item is not likely to be considered when a group of related corporations is evaluating the election to file on a consolidated basis?

  • Foreign tax payments
  • Capital gains and losses
  • Deferral of gains from intercompany transactions
  • AMT preferences and adjustments
  • All of the above

Page: 2

Question 1. Question : (TCO 2) Tate Company has approximately $250,000 in net income before deducting any compensation or other payment to its sole owner, Shari (who is single). Assume that Shari is in the 35% marginal tax bracket. Discuss the tax aspects of each of the following arrangements. (Ignore any employment tax considerations.)

(I) Shari operates Tate Company as a proprietorship.

(II) Shari incorporates Tate Company and pays herself a salary of $150,000 and no dividend.

(III) Shari incorporates the company and pays herself a $150,000 salary and a dividend of $77,750 ($100,000 – $22,250 corporate income tax).

(IV) Shari incorporates the company and pays herself a salary of $250,000.

Question 2. Question : (TCO 11) Lisa, a CPA, feels that she cannot act as an aggressive advocate for tax clients in today’s environment. What aspects of the ethical conduct of a tax practice might have influenced Lisa’s attitude?

Question 3. Question : (TCO 4) King Corporation has 1,000 shares of common stock outstanding owned by unrelated parties as follows: David, 300 shares; Helene, 300 shares; and Karen, 400 shares. Each of the three shareholders paid $75 per share for the King stock 10 years ago. King has $800,000 of accumulated E & P, and $40,000 of current E & P. In January of the current year, King distributes land held as an investment (adjusted basis of $260,000, fair market value of $220,000) to Karen in redemption of all 400 of her shares. In December of the current year, King distributes securities held as an investment (adjusted basis of $90,000, fair market value of $110,000) to Helene in redemption of 200 of her shares.

(I) What are the tax results to Karen on the redemption of her Palmer stock?

(II) What are the tax results to Helene on the redemption of her Palmer stock?

(III) What gain or loss is recognized by King Corporation on the two redemptions?

Question 4. Question : (TCO 5) Blake Corporation and Teal Corporation want to join forces as one corporation because their businesses are complementary. They would like the resulting corporation to have a new name, because both of them have been involved in high profile lawsuits due to environmental issues. Blake is a manufacturer with a basis in its assets of $2 million (value of $2.9 million) and liabilities of $500,000. Teal is a distributor of a variety of products including those of Blake’s. Its basis in its assets is $1.2 million (value of $2 million) and it has liabilities of $400,000. Given these facts, which type of reorganization would you suggest for Blake and Teal?

Question 5. Question : (TCO 6) The SRLY rules for consolidated tax returns are designed to keep corporations from trafficking their net operating losses. Explain.

ACCT 424 DeVry Week 5 Quiz Latest

Question 6. Question : (TCO 8) Which corporation is eligible to make the S election?

  • Foreign corporation
  • A 100%-owned corporation
  • An insurance company
  • A U.S. bank
  • None of the above

Question 8. Question : (TCO 8) Which, if any, has no effect on the stock basis of an S corporation shareholder?

  • Operating income
  • Long-term capital gain
  • Cost of goods sold
  • Short-term capital loss
  • None of the above

ACCT 424 DeVry Week 6 Quiz Latest

Question 1. Question : (TCO 9) During 2012, Jason gave $100,000 to his nephew, Matt. If he elects to split the gift with his spouse, Joan, how much is Jason’s taxable gift?

  • $23,000
  • $37,000
  • $100,000
  • $87,000

Question 2. Question : (TCO 9) In which country is the transfer of capital assets at death treated as a sale?

  • United States
  • Australia
  • New Zealand
  • Canada

Question 3. Question : (TCO 9) Donald and Frank (who are not related) acquired land as tenants with right of survivorship. Donald contributed $300,000, whereas Frank contributed $100,000 of the $400,000 purchase price. How much must be included in Donald’s gross estate if he were to die in 2012 when the land was valued at $1,200,000?

  • $1,200,000
  • $300,000
  • $900,000
  • $400,000

Question 4. Question : (TCO 9) The major distinguishing factor between an estate and an inheritance tax is

  • cash versus property transfers.
  • the party responsible for payment.
  • business or personal assets.
  • timing of the transfer involved.

Question 5. Question : (TCO 9) Garry wants to make a loan to his son with repayment on an installment arrangement. Which will prevent any part of this transaction from being taxed as a gift?

  • Loan less than the annual transfer exclusion
  • Charge interest
  • Filing Form 709 in advance
  • Having his son pay income taxes on the amount received

Question 6. Question : (TCO 9) Joe makes a gift of assets with a fair market value of $400,000 to his sister in 2012. He has made annual gifts of $50,000 cash for this and the last 4 years (total 5 years) to her as well as his brother, and he paid the applicable gift tax on these annual gifts. Presuming no other taxable gifts and before applying the unified tax credit, which is the amount of the taxable gifts for the current year?

  • $500,000
  • $487,000
  • $474,000
  • $400,000

Question 7. Question : (TCO 9) Which is not a requirement for a gift to be complete?

  • Formal contract
  • Delivery of the property
  • Competent donor
  • Acceptance of the gift

Question 8. Question : (TCO 9) When the gifts for any one calendar year exceed the annual exclusion or involve a gift of a future interest, which tax return must be filed with the IRS?

  • Form 1040
  • Form 706
  • Form 1040EZ
  • Form 709

Question 9. Question : (TCO 9) If a person dies while holding outstanding promissory notes issued to him or her by his or her child and the person forgives the notes in their will, which value should be included in the gross estate?

  • The original value should be included in the gross estate.
  • The book value should be included in the gross estate.
  • The fair market value should be included in the gross estate.
  • They should not be included in the gross estate at all.

Question 10. Question :       (TCO 9) In calculating the taxable estate, which is not allowed as a deduction?

  • Charitable transfers
  • State death taxes
  • Marital deduction
  • None of the above

ACCT 424 DeVry Week 7 Quiz Latest

Question 1. Question : (TCO 10) Which, if any, statement reflects the correct tax valuation rules?

  • The value of a note receivable is its face amount.
  • The geographical location of the property is relevant.
  • Sentimental value should be considered.
  • Values listed in the classified section of the newspaper are not representative.
  • None of the above

Question 2. Question : (TCO 10) Which factor does not decrease the value of a gross estate?

  • The election of § 2032 (alternate valuation date)
  • The election of § 2032A (special use valuation)
  • Stock involved represented a minority interest in a closely held corporation
  • Stock owned by the decedent who was the founder and key executive of a closely held corporation
  • None of the above

Question 3. Question : (TCO 10) In April 2011, Tim made a gift of real estate (basis of $900,000, fair market value of $800,000) to his aunt. After the gift, the aunt made $50,000 worth of capital improvements to the property. The aunt died in March 2012, when the property was worth $840,000. Under the aunt’s will, the realty passed to Tim. Tim’s income tax basis in the property is

  • $950,000.
  • $900,000.
  • $890,000.
  • $840,000.
  • None of the above

Question 4. Question : (TCO 10) In June 2011, Debra made a gift of securities (basis of $613,000, fair market value of $913,000) to her uncle, upon which a gift tax of $60,000 was paid. The uncle died in July 2012, when the securities were worth $950,000. Under the terms of the uncle’s will, the securities return to Debra. Debra’s income tax basis in the securities is

  • $613,000.
  • $633,000.
  • $950,000.
  • $970,000.
  • None of the above

Question 5. Question : (TCO 10) Lisa has been widowed three times. Her first husband died in 2009, leaving an unused exclusion amount of $3.5 million. Her second husband died in early 2011, leaving the entire $5 million exclusion amount unused. Lisa’s third husband died in late 2012 with an unused exclusion amount of $4 million. Lisa’s DSUEA is

  • $3.5 million.
  • $4 million.
  • $5 million.
  • $9 million.
  • $12.5 million.

Question 6. Question : (TCO 10) Superior is a complex trust. This year, it distributed all of its accounting income and $10,000 from corpus. Superior’s taxable income for the year is

  • ($5,000).
  • ($300).
  • ($100).
  • not determinable from the information given.

Question 7. Question : (TCO 10) The Yellow Trust incurred $10,000 of portfolio income. Its corporate trustee paid fiduciary fees of $1,000 therefrom. Yellow holds as one of its assets an insurance policy on the life of Marcia (the grantor). Premiums of $800 on this policy for the year were paid by Marcia. How much gross income does Marcia include with respect to these trust activities?

  • $0
  • $800
  • $8,200
  • $9,000
  • $10,000

Question 8. Question : (TCO 10) During the current year, a trust received $80,000 of taxable interest income, paid trustee’s commissions of $8,000, and had no other income or expenses. The trust instrument requires that $40,000 be paid annually to Antoinette and $80,000 be paid annually to George. How much gross income must Antoinette and George recognize?

  • $40,000 by Antoinette and $80,000 by George
  • $40,000 by Antoinette and $40,000 by George
  • $24,000 by Antoinette and $48,000 by George
  • $36,000 by Antoinette and $36,000 by George
  • None of the above

Question 9. Question : (TCO 10) The Jain Trust is required to pay its entire annual accounting income to Sam and Janet. The trust’s personal exemption is

  • $600.
  • $300.
  • $100.
  • $0.
  • None of the above

Question 10. Question :       (TCO 10) Three months after Emma died, her executor received the final $10,000 installment of Emma’s Super Lottery winnings from the state. Which statement is true?

  • The $10,000 is included only in Emma’s gross estate.
  • The $10,000 is subject to tax only on her estate’s income tax return.
  • The $10,000 is subject to neither income nor estate tax because it was received after Emma’s death.
  • The $10,000 is both included in Emma’s gross estate and subject to tax on her estate’s income tax return.
  • None of the above
ACCT 424 DeVry Federal Tax Accounting II Entire Course

ACCT 424 DeVry Federal Tax Accounting II Entire Course

 

 

ECOM,ECON,ECT,EDU,EED,EMM,ENG,ENGL,ENT,ENTR,ESE,ETH,ETHC,FIN,FIS,FP,GB,GBM,GED,GEN,GENERAL QUESTIONS,GLG,GM,GSCM,HCA,HCS,HHS,HIS,HIST,HLT,HOSP,HPE,HRM,HSA,HSM,HTM,HTT,HUM,HUMN,IFSM,INFT,INT,IS,ISCOM,IT,ITB,JADM,JUS,JWI,

There are no reviews yet.

Add your review