FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 22: S: Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

Pass-through S corporation losses can reduce the basis in the shareholder's loan to the entity, but distributions do not.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

Distribution of appreciated property is taxable to an S corporation.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

Any excess of S corporation losses or deductions over the shareholder's combined stock and debt basis is suspended until there is a subsequent stock or debt basis.

Which item is not included in an S corporation's nonseparately computed income?

Which item does not appear on Schedule K of Form 1120S?

An item that appears in the "Other Adjustments Account" affects stock basis, but not AAA, such as tax-exempt interest.

Shareholders may deduct losses in excess of their basis in S corporation stock when a shareholder holds a loan basis of zero.

Where the S corporation rules are silent, partnership rules apply to the S corporation.

Form 1120S provides a shareholder's computation of his or her stock basis.

As a general rule, S corporation treatment is not advantageous when the individual tax rate far exceeds the applicable corporate tax rate.

Which statement is incorrect with respect to filing an S election?

An S shareholder's stock basis includes a ratable share of any S corporation liabilities.

How may an S corporation manage its liability for the built-in gains tax?

During 2012, Rasic, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2011, Rasic's stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. Calculate the amount and type of income that Rasic recognizes in 2012, assuming that there is no C corporation AEP.

For a new corporation, a premature S election may not be effective.

Non-separately computed loss ____________________ a S shareholder's stock basis.

You are a 60% owner of an S corporation. Calculate your ending stock basis, based upon these facts.

A new S corporation shareholder can revoke the S election unilaterally, if he/she owns how much of the existing S corporation's stock?

Randall owns 800 shares in Fabrication, Inc., an S corporation in Moss Hill, Texas.In 2012, his basis in his stock is $30,000, before the adjustment for this year's losses.During 2012, Randall's share of the corporation's ordinary loss is $20,000 and his share of its capital loss is $15,000.How much can Randall deduct due to these losses?

An S corporation's separately stated items are identical to those separately stated by partnerships.