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111.Which of the following items will be an addi...

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111.Which of the following items will be an addition to AMTI in arriving at ACE? 1. None of the above. 2. Excess charitable contributions. 3. Federal income tax. 4. Excess capital loss. 5. Tax-exempt income Save Answer 2. (Points: 1.25) Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2010 (before adjustment for adjusted current earnings). If Tanver?s adjusted current earnings is $16 million, its tentative minimum tax for 2010 is: 1. $7,000,000. 2. $2,750,000. 3. Some other amount. 4. $6,750,000. 5. $310,000. Save Answer 3. (Points: 1.25) Which entity is subject to the ACE provisions? 1. None of the above. 2. S corporation. 3. Regulated investment companies. 4. Real estate investment trust (REITs). 5. Real estate mortgage investment conduits. Save Answer 4. (Points: 1.25) Which statement is false? 1. The starting point for computing AMTI is taxable income. 2. None of the above. 3. The starting point for computing ACE is taxable income. 4. A tax preference is added to taxable income. 5. The ACE adjustment can be a negative amount. Save Answer 5. (Points: 1.25) Lemon, Inc., has taxable income of $13 million in 2010. What is the maximum DPAD tax savings for this C corporation? 1. $132,600. 2. $273,000. 3. $265,200. 4. None of the above. 5. $409,500. Save Answer 6. (Points: 1.25) Which statement is false? 1. None of the above is false. 2. Members of an EAG are treated as a single taxpayer for purposes of the DPAD. 3. For an EAG, the DPAD is allocated among the members in proportion to each member?s respective amount of QPAI. 4. The DPAD of a consolidated group must be allocated to the group?s members in proportion to each member?s QPAI. 5. The stock ownership requirement for the EAG rules is 50%. Save Answer 7. (Points: 1.25) O?Neal, Inc., an S corporation, has taxable income of $14 million in 2010. Assume there are two shareholders, each in the top individual tax bracket. What is the maximum DPAD tax savings for this S corporation? 1. None. 2. $1,260,000. 3. None of the above. 4. $441,000. 5. $294,000. Save Answer 8. (Points: 1.25) Which statement, if any, is false? 1. An S corporation is subject to the corporate AMT. 2. The AMT is a separate tax system from the ? 11 tax system. 3. Many of the adjustments that apply to individuals also apply to corporations. 4. A high level of investment in assets (e.g., equipment or structures) is a reason a company may be subject to the AMT. 5. None of the above. Save Answer 9. (Points: 1.25) Gem Corporation, a calendar year taxpayer, has AMTI (before adjustment for adjusted current earnings) of $6 million for 2010. If Gem Corporation?s ACE is $15 million, its tentative minimum tax for 2010 is: 1. $4.2 million. 2. $2.55 million. 3. $2.02 million. 4. None of the above. 5. $3.45 million. Save Answer 10. (Points: 1.25) Which of the following is always personal holding company income? 1. Gas royalties. 2. Rent income. 3. All of the above. 4. Interest. 5. Personal service contract income. Save Answer 11. (Points: 1.25) The penalty tax in 2010 for AET and PHC situations is the highest rate applicable to individual taxpayers. 1. False 2. True Save Answer 12. (Points: 1.25) A business with taxable income less than $1 million cannot be subject to the AMT. 1. False 2. True Save Answer 13. (Points: 1.25) As taxable income is reduced by an NOL carryback, there is a corresponding increase in the DPAD. 1. True 2. False Save Answer 14. (Points: 1.25) DPGR cannot include the cost of an embedded service that is part of in the sale of a manufactured product. 1. False 2. True Save Answer 15. (Points: 1.25) The regular foreign tax credit is available to reduce AMT liability. 1. True 2. False Save Answer 16. (Points: 1.25) In the case of an individual, modified AGI is substituted for taxable income in the DPAD formula. 1. True 2. False Save Answer 17. (Points: 1.25) The AMT rate for corporations is lower than the rates for individuals. 1. False 2. True Save Answer 18. (Points: 1.25) Reasonable needs for purposes of the accumulated earnings tax include loans to shareholders. 1. False 2. True Save Answer 19. (Points: 1.25) In connection with the construction of a housing project, a contractor pays an architect to design the homes being built. The architect?s fee is an embedded service that does not qualify as DPGR. 1. True 2. False Save Answer 20. (Points: 1.25) DPAD for 2010 is 9% of the greater of QPAI or TI, but not to exceed the W-2 wages limitation. 1. False 2. True Save Answer

 

Paper#6630 | Written in 18-Jul-2015

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