corporations∶organizationandcapitalstructure(编辑修改稿)

corporations∶organizationandcapitalstructure(编辑修改稿)内容摘要：

OBJ: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 5 min 7. Emma, the sole shareholder of Quail Corporation (a C corporation), has the corporation pay her a salary of $300,000 in 2020. The Tax Court has held that $80,000 represents unreasonable pensation. Assuming Emma is in the 35% bracket in 2020, the Tax Court’s holding will increase total tax she pays in 2020. ANS: F To the extent a salary payment is not considered reasonable, the payment is treated as a dividend, which is generally taxed at a maximum rate of 15%. The Tax Court’s holding saves Emma $16,000 [$80,000  (35% – 15%)]. (The total tax paid by Quail will increase as a result of the disallowed pensation deduction.) PTS: 1 DIF: 1 REF: p. 174 OBJ: 1 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min 8. Compensation that is determined to be unreasonable is usually treated as a constructive dividend to the shareholder and is not deductible by the corporation. ANS: T Unreasonable pensation is treated as a constructive dividend to the shareholder and is not deductible by the corporation. PTS: 1 DIF: 1 REF: p. 174 OBJ: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 9. Jake, the sole shareholder of Peach Corporation, a C corporation, has the corporation pay him $100,000. For tax purposes, Peach would prefer to have the payment treated as salary instead of dividend. ANS: T Corporations: Organization and Capital Structure 187 The corporation can deduct salary payments but cannot deduct dividends. (Jake must include in gross ine both salary and dividends, but he would prefer dividend ine due to the preferential tax rate accorded such ine.) PTS: 1 DIF: 1 REF: p. 174 OBJ: 1 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min 10. Thrush Corporation files Form 1120, which reports taxable ine of $200,000. The corporation’s tax is $56,250. ANS: F The tax is equal to $61,250 [($50,000  15%) + ($25,000  25%) + ($25,000  34%) + ($100,000  39%)]. PTS: 1 DIF: 1 REF: Exhibit OBJ: 4 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min 11. The corporate marginal tax rates range from 10% to 35%, while the individual marginal tax rates range from 15% to 39%. ANS: F The opposite is the case: the corporate marginal tax rates range from 15% to 39%, and the individual marginal tax rates range from 10% to 35%. PTS: 1 DIF: 1 REF: p. 175 | Exhibit OBJ: 1 | 4 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 12. Nontax considerations in the selection of business form include limited liability, free transferability of ownership interests, continuity of life, and centralized management. ANS: T PTS: 1 DIF: 1 REF: p. 177 OBJ: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 13. Under the ―checkthebox‖ Regulations, a singlemember LLC that fails to elect to be treated as a corporation will be taxed as a partnership. ANS: F Sole proprietorship, not partnership, is the default classification for a singlemember LLC that does not elect to be treated as a corporation under the ―checkthebox‖ Regulations. PTS: 1 DIF: 1 REF: p. 178 OBJ: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 14. All corporations are allowed to choose a calendar year or a fiscal year for Federal tax reporting purposes. ANS: F There are limitations on the use of a fiscal year in the case of personal service corporations and S corporations. Such entities generally must use the calendar year as their reporting period, but several exceptions to this rule apply (., business purpose for fiscal year). 188 2020 Comprehensive Volume/Test Bank PTS: 1 DIF: 1 REF: p. 1710 OBJ: 2 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 15. Corporations that maintain inventory for sale to customers are required to use the accrual method of accounting for all ine and expense items. ANS: F As a general rule, corporations that maintain inventory for sale to customers are required to use the accrual method of accounting for determining sales and cost of goods sold. The cash method may be used for other ine and expense items. PTS: 1 DIF: 1 REF: p. 1711 OBJ: 2 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 16. On December 31, 2020, Lavender, Inc., an accrual basis C corporation, accrues a $90,000 bonus to Barry, its vice president and a 70% shareholder. Lavender pays the bonus to Barry, who is a cash basis taxpayer, on March 15, 2020. Lavender can deduct the bonus in 2020, the year in which Barry’s services were performed. ANS: F Because Barry is a related party (more than 50% shareholder), Lavender’s deduction for the bonus occurs in 2020, the year in which the $90,000 is included in Barry’s gross ine. PTS: 1 DIF: 1 REF: Example 10 OBJ: 2 NAT: AICPA FNReporting | AACSB Analytic MSC: 5 min 17. In 2020, Fox Corporation had taxable ine of $100,000, which included a longterm capital gain of $30,000. The maximum amount of tax applicable to the capital gain is $4,500 ($30,000  15%). ANS: F While the maximum rate on longterm capital gains of individuals is limited to 15%, there is no maximum rate applicable to longterm capital gains of C corporations. PTS: 1 DIF: 1 REF: p. 1711 OBJ: 2 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min Corporations: Organization and Capital Structure 189 18. Albatross, a C corporation, had $200,000 ine from operations and a $25,000 shortterm capital loss in 2020. Albatross Corporation’s taxable ine is $200,000. ANS: T A corporation cannot deduct a capital loss in the year incurred. For corporations, a capital loss must be carried back three years or forward five years and be offset against capital gains in the carryback/forward years. PTS: 1 DIF: 1 REF: p. 1712 OBJ: 2 NAT: AICPA FNMeasurement | AACSB Analytic MS。