Question 1

Cerulean Corporation owns 6% of the stock in Auburn Corporation.During the year,Auburn received cash dividends of $800,000 from this investment.Determine Auburn Corporation's dividends received deduction based on the following assumptions:

Accepted Answer

The answer of Cerulean Corporation owns 6% of the stock...

Question 2

Like regular dividends,constructive dividends must be distributed to a corporation's shareholders on a pro rata basis.

Accepted Answer

A) True 
 B)False

Question 3

Ten years ago,Oro Corporation purchased all of the stock of Plata Corporation for $400,000.In the current year,Plata Corporation is liquidated,and all of its assets (basis of $900,000; fair market value of $1.5 million) are distributed to Oro Corporation.As a result of the liquidation,a tax consequence is:

Accepted Answer

A)   Oro Corporation recognizes no gain or loss.
B)   Oro Corporation recognizes a gain of $800,000.
C)   Oro Corporation's basis in the assets of Plata Corporation is $400,000.
D)   Plata Corporation recognizes a gain of $600,000.
E)   None of the above.F) D) and E)
G) A) and E)

Question 4

A partnership's ordinary income or loss is computed without considering any qualified dividend income.This item is separately stated and passes through to the individual partners.

Accepted Answer

A) True 
 B)False

Question 5

How can the Subchapter S election be lost?

Accepted Answer

The S election may be terminated volunta...

Exam 20: Corporations and Partnerships

How can the Subchapter S election be lost?

Correct Answer
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The S election may be terminated volunta...
View Answer

Like regular dividends,constructive dividends must be distributed to a corporation's shareholders on a pro rata basis.

Correct Answer
verified

A partnership's ordinary income or loss is computed without considering any qualified dividend income.This item is separately stated and passes through to the individual partners.

Correct Answer
verified

Cerulean Corporation owns 6% of the stock in Auburn Corporation.During the year,Auburn received cash dividends of $800,000 from this investment.Determine Auburn Corporation's dividends received deduction based on the following assumptions:

Correct Answer
verified

Correct Answer
verified

Exam 20: Corporations and Partnerships

How can the Subchapter S election be lost?

Correct AnswerverifiedThe S election may be terminated volunta...View AnswerShow Answer

Like regular dividends,constructive dividends must be distributed to a corporation's shareholders on a pro rata basis.

Correct AnswerverifiedShow Answer

A partnership's ordinary income or loss is computed without considering any qualified dividend income.This item is separately stated and passes through to the individual partners.

Correct AnswerverifiedShow Answer

Cerulean Corporation owns 6% of the stock in Auburn Corporation.During the year,Auburn received cash dividends of $800,000 from this investment.Determine Auburn Corporation's dividends received deduction based on the following assumptions:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
The S election may be terminated volunta...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified