A qualified distribution from a Roth IRA must meet which of the following requirements: I.The distribution must be made on or after the taxpayer reaches age 591/2. II.The distribution is for qualified education expenses. III.The taxpayer must begin distributions after reaching age 701/2.

A) Only statement I is correct. B) Only statement II is correct. C) Only Statements I and II are correct. D) Only statement III is correct. E) Only statements II and III are correct. A) Only statement I is correct. B) Only statement II is correct. C) Only Statements I and II are correct. D) Only statement III is correct. E) Only statements II and III are correct.

Exam 15: Choice of Business Entity - Other Considerations

Coffin Corporation (a domestic corporation)has $200,000 of U.S.source taxable income and $600,000 of foreign source taxable income from operations in Latvia.Latvia levied $67,000 in taxes on the foreign source income.U.S.taxes before credits are $280,000.The foreign tax credit limitation is

(Multiple Choice)

4.7/5

(43)

Question 61

Helen receives the right to acquire 700 shares of Smith Corporation stock through the company's incentive stock option plan.The fair market value of the stock at the date of the grant is $8 and the exercise price of the option is $15 per share.The fair market value of the stock at the date of exercise is $19.Helen will recognize income at the date of grant and the exercise date of Date of grant Exercise date a. \- 0- \- 0- b. \- 0- \ 2,800 c. \- 0- \ 4,900 d. \ 5,600 \- 0-

(Short Answer)

5.0/5

(36)

Question 62

On February 19,2011,Woodbridge Corporation granted Harvey an option to acquire 200 shares of the company's stock for $10 per share.The fair market price of the stock on the date of grant was $16.The stock requires that Harvey remain with the company for one year after the date of exercise.The option did not have a readily ascertainable fair market value.Harvey exercises the option on September 23,2012,when the fair market value of the stock is $19.He makes a Section 83(b)election at the exercise date.On September 23,2013,the fair market value of the stock is $25 per share.How much must he report as income in 2013?

(Multiple Choice)

4.9/5

(46)

Question 63

A taxpayer must begin withdrawals from any type of retirement plan (except a Roth IRA)no later than April 1 of the tax year after the taxpayer reaches age 70¹/₂ or,if later,the year they retire.

(True/False)

4.8/5

(31)

Question 64

A qualified distribution from a Roth IRA must meet which of the following requirements: I.The distribution must be made on or after the taxpayer reaches age 59¹/₂. II.The distribution is for qualified education expenses. III.The taxpayer must begin distributions after reaching age 70¹/₂.

(Multiple Choice)

4.8/5

(40)

Question 65

Thomas maintains an IRA account.During the year he wins $10,000 in the state lottery and contributes it to his IRA account.Because he is an active participant in a qualified pension plan,he does not take a deduction for any part of his contribution.At the end of 2013 the total assets in the account are $30,000.Thomas is subject to a penalty on his contribution of

(Multiple Choice)

4.7/5

(32)

Question 66

When calculating AMTI,individual taxpayers must add back the following: I.Miscellaneous itemized deductions subject to the 2% limitation. II.Personal exemption amounts.

(Multiple Choice)

4.9/5

(48)

Question 67

Match each statement with the correct term below. -IRA

(Multiple Choice)

4.8/5

(40)

Question 68

Abraham establishes a Roth IRA at age 45 and contributes $5,500 per year for the next 25 years.Assume he meets the income limits during this period.The account balance is now $364,500 ($137,500 contributions,$227,000 earnings).Abraham would like to draw out the entire amount this year.How much tax would Abraham have to pay as a result of this decision?

(Essay)

4.8/5

(39)

Question 69

On March 11,2011,Carlson Corporation granted Lana an option to acquire 200 shares of the company's stock for $ 6 per share.The fair market price of the stock on the date of grant was $10.The stock requires that Lana remain with the company for one year after the date of exercise.The option did not have a readily ascertainable fair market value.Lana exercises the option on June 12,2012,when the fair market value of the stock is $15.On June 12,2013,the fair market value of the stock is $20 per share.How much must she report as income in 2013?

(Multiple Choice)

4.9/5

(41)

Question 70

Which of the following is (are)AMT tax preference item(s)? I.Net operating loss deduction. II.Exclusion of gain on qualified small business stock.

(Multiple Choice)

4.9/5

(38)

Question 71

Jose is an employee of O'Hara Industry and earns $100,000 in 2012.The maximum amount O'Hara can contribute to a money purchase plan on behalf of Jose is

(Multiple Choice)

4.8/5

(41)

Question 72

Which of the following is (are)AMT tax preference item(s)? I.Tax-exempt interest from private activity bonds. II.Percentage depletion in excess of basis.

(Multiple Choice)

4.8/5

(31)

Question 73

Nestor receives the right to acquire 1,000 shares of Knolls Corporation stock through the company's incentive stock option plan.The fair market value of the stock at the date of the grant is $20 and the exercise price of the option is $24 per share.For the option to qualify as an incentive stock option I.Nestor must exercise the option within 10 years of the date of grant. II.Nestor must hold the stock for at least 2 years after the date of exercise before selling it.

(Multiple Choice)

4.8/5

(46)

Question 74

Dunn Company bought an old building in downtown Lafayette for $75,000.The land was not purchased; it is being leased.The building was originally placed into service in 1918.Dunn spends $100,000 to rehabilitate the building with the intent to develop a microbrewery on the site.The company retained 80% of the external and internal walls and framework.Assume the amount of the older building rehabilitation credit Dunn can claim is $10,000.What is the basis in the building for depreciation purposes?

(Multiple Choice)

4.8/5

(31)

Question 75

Peter opened his IRA in 2003and withdrew money to purchase a house in 2012.Since the distribution qualified as a "qualified first-time-homebuyer expenses," it is not subject to the 10% early withdrawal penalty.

(True/False)

4.8/5

(40)

Question 76

On January 22,2011,Dalton Corporation granted Kathleen an option to acquire 1,500 shares of the company's stock for $ 7 per share.The fair market price of the stock on the date of grant was $13.The stock requires that Kathleen remain with the company for one year after the date of exercise.The option did not have a readily ascertainable fair market value.Kathleen exercises the option on August 10,2012,when the fair market value of the stock is $17.She makes a Section 83 (b)election at the exercise date.On August 10,2013,the fair market value of the stock is $23 per share.How much must she report as income in 2012 and 2013? 2012 2013 a. \- 0- \ 15,000 b. \- 0- \ 24,000 c. \ 10,500 \ 4,500 d. \ 15,000 \- 0-

(Short Answer)

4.9/5

(37)

Question 77

Roland is an employee with the Belmont Corporation.Belmont maintains a money purchase plan for all its employees.Determine the maximum deductible contribution Belmont can make to the pension plan in each of the following situations: a.Roland's salary is $100,000. b.Roland's salary is $225,000.

(Essay)

4.9/5

(38)

Question 78

Ortiz Corporation determined its AMTI to be $120,000 for 2013.If the regular income tax liability is $15,000,what is the amount of the alternative minimum tax for 2013?

(Multiple Choice)

4.9/5

(37)

Question 79

Match each statement with the correct term below. -Alternative minimum tax

(Multiple Choice)

4.9/5

(39)

Question 80

Showing 61 - 80 of 106

Coffin Corporation (a domestic corporation)has $200,000 of U.S.source taxable income and $600,000 of foreign source taxable income from operations in Latvia.Latvia levied $67,000 in taxes on the foreign source income.U.S.taxes before credits are $280,000.The foreign tax credit limitation is

A taxpayer must begin withdrawals from any type of retirement plan (except a Roth IRA)no later than April 1 of the tax year after the taxpayer reaches age 70¹/₂ or,if later,the year they retire.

A qualified distribution from a Roth IRA must meet which of the following requirements: I.The distribution must be made on or after the taxpayer reaches age 59¹/₂. II.The distribution is for qualified education expenses. III.The taxpayer must begin distributions after reaching age 70¹/₂.

When calculating AMTI,individual taxpayers must add back the following: I.Miscellaneous itemized deductions subject to the 2% limitation. II.Personal exemption amounts.

Match each statement with the correct term below. -IRA

Which of the following is (are)AMT tax preference item(s)? I.Net operating loss deduction. II.Exclusion of gain on qualified small business stock.

Jose is an employee of O'Hara Industry and earns $100,000 in 2012.The maximum amount O'Hara can contribute to a money purchase plan on behalf of Jose is

Which of the following is (are)AMT tax preference item(s)? I.Tax-exempt interest from private activity bonds. II.Percentage depletion in excess of basis.

Peter opened his IRA in 2003and withdrew money to purchase a house in 2012.Since the distribution qualified as a "qualified first-time-homebuyer expenses," it is not subject to the 10% early withdrawal penalty.

Roland is an employee with the Belmont Corporation.Belmont maintains a money purchase plan for all its employees.Determine the maximum deductible contribution Belmont can make to the pension plan in each of the following situations: a.Roland's salary is $100,000. b.Roland's salary is $225,000.

Ortiz Corporation determined its AMTI to be $120,000 for 2013.If the regular income tax liability is $15,000,what is the amount of the alternative minimum tax for 2013?

Match each statement with the correct term below. -Alternative minimum tax

Federal Income Taxation - an Overview

Income Tax Concepts

Income Sources

Income Exclusions

Introduction to Business Expenses

Business Expenses

Losses: Deductions and Limitations

Taxation of Individuals

Acquisitions of Property

Cost Recovery on Property: Depreciation,depletion,and Amortization

Property Dispositions

Nonrecognition Transactions

Choice of Business Entity - General Tax and Nontax Factorsformation

Choice of Business Entity - Operations and Distributions

Tax Research

Filters

Exam 15: Choice of Business Entity - Other Considerations

Coffin Corporation (a domestic corporation)has $200,000 of U.S.source taxable income and $600,000 of foreign source taxable income from operations in Latvia.Latvia levied $67,000 in taxes on the foreign source income.U.S.taxes before credits are $280,000.The foreign tax credit limitation is

A taxpayer must begin withdrawals from any type of retirement plan (except a Roth IRA)no later than April 1 of the tax year after the taxpayer reaches age 701/2 or,if later,the year they retire.

A qualified distribution from a Roth IRA must meet which of the following requirements: I.The distribution must be made on or after the taxpayer reaches age 591/2. II.The distribution is for qualified education expenses. III.The taxpayer must begin distributions after reaching age 701/2.

When calculating AMTI,individual taxpayers must add back the following: I.Miscellaneous itemized deductions subject to the 2% limitation. II.Personal exemption amounts.

Match each statement with the correct term below. -IRA

Which of the following is (are)AMT tax preference item(s)? I.Net operating loss deduction. II.Exclusion of gain on qualified small business stock.

Jose is an employee of O'Hara Industry and earns $100,000 in 2012.The maximum amount O'Hara can contribute to a money purchase plan on behalf of Jose is

Which of the following is (are)AMT tax preference item(s)? I.Tax-exempt interest from private activity bonds. II.Percentage depletion in excess of basis.

Peter opened his IRA in 2003and withdrew money to purchase a house in 2012.Since the distribution qualified as a "qualified first-time-homebuyer expenses," it is not subject to the 10% early withdrawal penalty.

Roland is an employee with the Belmont Corporation.Belmont maintains a money purchase plan for all its employees.Determine the maximum deductible contribution Belmont can make to the pension plan in each of the following situations: a.Roland's salary is $100,000. b.Roland's salary is $225,000.

Ortiz Corporation determined its AMTI to be $120,000 for 2013.If the regular income tax liability is $15,000,what is the amount of the alternative minimum tax for 2013?

Match each statement with the correct term below. -Alternative minimum tax

Federal Income Taxation - an Overview

Income Tax Concepts

Income Sources

Income Exclusions

Introduction to Business Expenses

Business Expenses

Losses: Deductions and Limitations

Taxation of Individuals

Acquisitions of Property

Cost Recovery on Property: Depreciation,depletion,and Amortization

Property Dispositions

Nonrecognition Transactions

Choice of Business Entity - General Tax and Nontax Factorsformation

Choice of Business Entity - Operations and Distributions

Tax Research

Filters

A taxpayer must begin withdrawals from any type of retirement plan (except a Roth IRA)no later than April 1 of the tax year after the taxpayer reaches age 70¹/₂ or,if later,the year they retire.

A qualified distribution from a Roth IRA must meet which of the following requirements: I.The distribution must be made on or after the taxpayer reaches age 59¹/₂. II.The distribution is for qualified education expenses. III.The taxpayer must begin distributions after reaching age 70¹/₂.