1. Dedria Corporation changed its name to Lenise Corporation. This is example of what type of tax-free reorganization? X reorganization F reorganization Y reorganization Z reorganization 2. Earnings accumulated for self-insurance purposes are considered to be for the reasonable needs of the business for purposes of the accumulated earnings tax (section 531). True False 3. Once a Corporation is determined to be a personal holding company, it will always be a personal holding company for the remainder of its existence for purposes of the personal holding company tax (section 541). true false 4. The IRS may impose both the accumulated earnings tax (section 531) and the personal holding company tax (section 541) on a Corporation in the same tax year. true false 5. Earnings accumulated for purposes of making loans to suppliers are considered to be for the reasonable needs of the business. true false 6. Corporations are not required to make estimated tax payments for any alternative minimum tax liability. true false 7. Voting stock only may be used by the acquiring corporation in a type B reorganization without causing the reorganization to be taxable. true false 8. In a type C reorganization, the acquiring corporation must assume all of the liabilities of the acquired (target) Corporation true false 9. Nonvoting stock may be used in a type a reorganization without causing the reorganization to be taxable true fasle 10. In regards to the personal holding company tax (section 541), under which of the following circumstances will the Corporation not pass the 50% tax? The Corporation has 10 unequal unrelated shareholders the Corporation has 10 equal unrelated shareholders the Corporation has nine equal unrelated shareholders the Corporation has nine unrelated shareholders 11. Which of the following types of income is not considered to be personal holding company income for purposes of the personal holding company tax (section 541)? Dividends interests sales royalties 12. Maggiore corporations total reasonable business needs for 2013 was $220,000. Majority corporations accumulated earnings and profit at the beginning of 2013 was 20 $40,000 (including consideration for the dividends listed below). Majority Corporation also the following information for 2013: taxable income-$350,000; federal income tax-hundred $19,000; dividends received (less than 20% owned domestic corporation)-hundred thousand dollars; cash dividends paid in 2013-$4000; dividends paid January 31, 2014-$20,000; consent dividends-$10,000; access travel contributions-$16,000; net capital loss adjustment-$8000. The accumulated earnings credit for purposes of the accumulated earnings tax for Maggiore Corporation for the year of 2013 is: $10,000 $110000 $80,000 $100,000 13. Which of the following will not reduce the amount of acutely taxable income? A non-taxable dividend paid during the tax year. A property dividend paid during the tax year. A cash dividend paid within two and .

1. 1. Dedria Corporation changed its name to Lenise Corporation.
This is example of what type of tax-free reorganization?
X reorganization
F reorganization
Y reorganization
Z reorganization
2. Earnings accumulated for self-insurance purposes are
considered to be for the reasonable needs of the business for
purposes of the accumulated earnings tax (section 531).
True
False
3. Once a Corporation is determined to be a personal holding
company, it will always be a personal holding company for the
remainder of its existence for purposes of the personal holding
company tax (section 541).
true
false
4. The IRS may impose both the accumulated earnings tax
(section 531) and the personal holding company tax (section
541) on a Corporation in the same tax year.
true
false
5. Earnings accumulated for purposes of making loans to
suppliers are considered to be for the reasonable needs of the
business.
true
false
6. Corporations are not required to make estimated tax payments
for any alternative minimum tax liability.
true

2. false
7. Voting stock only may be used by the acquiring corporation
in a type B reorganization without causing the reorganization to
be taxable.
true
false
8. In a type C reorganization, the acquiring corporation must
assume all of the liabilities of the acquired (target) Corporation
true
false
9. Nonvoting stock may be used in a type a reorganization
without causing the reorganization to be taxable
true
fasle
10. In regards to the personal holding company tax (section
541), under which of the following circumstances will the
Corporation not pass the 50% tax?
The Corporation has 10 unequal unrelated shareholders
the Corporation has 10 equal unrelated shareholders
the Corporation has nine equal unrelated shareholders
the Corporation has nine unrelated shareholders
11. Which of the following types of income is not considered to
be personal holding company income for purposes of the
personal holding company tax (section 541)?
Dividends
interests
sales
royalties
12. Maggiore corporations total reasonable business needs for
2013 was $220,000. Majority corporations accumulated earnings

3. and profit at the beginning of 2013 was 20 $40,000 (including
consideration for the dividends listed below). Majority
Corporation also the following information for 2013: taxable
income-$350,000; federal income tax-hundred $19,000;
dividends received (less than 20% owned domestic
corporation)-hundred thousand dollars; cash dividends paid in
2013-$4000; dividends paid January 31, 2014-$20,000; consent
dividends-$10,000; access travel contributions-$16,000; net
capital loss adjustment-$8000. The accumulated earnings credit
for purposes of the accumulated earnings tax for Maggiore
Corporation for the year of 2013 is:
$10,000
$110000
$80,000
$100,000
13. Which of the following will not reduce the amount of
acutely taxable income?
A non-taxable dividend paid during the tax year.
A property dividend paid during the tax year.
A cash dividend paid within two and one-half months after the
close of the tax year.
It can set dividend paid within two and one-half months after
the close of the tax year.
14. Four 2013, Prada Corporation had the following
transactions: regular taxable income- $1,440,000; a salary
depreciation on real estate in excess of straight-line (placed in
service in 2010)-$560,000; and workstation of certified
pollution control facilities- $160,000; tax-exempt interest on
lamentable bonds not use for a central government purposes-
$280,000; untaxed appreciation on property donated to a
qualified charity-hundred and $20,000; percentage depletion in
excess of operatives adjusted basis-$180,000. The regular
federal income tax liability for Prada Corporation for 2013 was
$489,600. The alternative minimum tax (line 16) four Prada

4. Corporation for tax year 2013 is:
$0
$58,400
$548,000
$489,600
15. Majority corporations total reasonable business needs for
2013 was $320,000. Majority corporations accumulated earnings
and profit at the beginning of 2013 was $210,000 (including
consideration for dividends listed below ). Majority Corporation
also have the following information for 2013: taxable income-
$350,000; federal income tax-$119,000; dividends received
(less than 20%) domestic corporation)-$100,000; cash dividends
paid in 2013-$40,000; dividends paid January 31, 2014-$20,000;
consent dividends-$10,000; access charitable contributions-
$16,000; net capital loss adjustment-$8000. The dividends paid
deduction for purposes of the accumulated earnings tax for
majority Corporation for the year 2013 is:
$100,000
$70,000
$60,000
$40,000
16. Majority corporations total reasonable business needs for
2013 was $320,000. Majority corporations acutely earning a
profit at the beginning of 2013 was $210,000 (including
consideration for dividends listed below) majority Corporation
also the following information for 2013: taxable income-
$250,000; federal income tax $119,000; dividends received (less
than 20% own domestic corporation)-$100,000; cash dividends
paid in 2013-$40,000; dividends paid January 31, 2014-$20,000;
consent dividends-$10,000; excess charitable contributions-
$16,000; net capital loss adjustment-$8000. The cumulative
earning credit for purposes of the accumulated earnings tax for
majority Corporation for the year 2013 is:
$60,000

5. $100,000
$110,000
$40,000
17. In a complete liquidation of the Corporation, under no
circumstances may the liquidating Corporation have a recognize
loss as a result of liquidation.
True
false
18. It is possible (i.e. could happen) for a liquidating
Corporation to recognize a gain or loss on the distribution of
disqualified property.
True
false
19. Michelle and her daughter, Gloria, or the sole shareholders
of Zoe Corporation. Gloria terminates her entire stock
ownership and Zoe Corporation by selling all for stock back to
the Corporation. One year later, Gloria buys the stock of
Michelle in Zoe Corporation. Despite this, Gloria is complete
termination of her interest can still be treated as a qualified
stock redemption
true
false
20. As a result of a redemption, a shareholder’s direct and
indirect (i.e. stock attribution rules effect) ownership in a
corporation decreased from 60% to 40%. Under these
circumstances, the redemption qualifies for sale (redemption)
treatment
true
false
21. A split-off his exchange of the Parent Corporation stock by
shareholders of the Parent Corporation in exchange for stock in

6. a Subsidiary of the Parent Corporation.
True
false
22. A split-off is where a parent corporation give stock of its
subsidiaries to its shareholders and the shareholders give up
nothing in return.
True
false
23. A spin-off is where a shareholder of a parent Corporation
receives stock in the subsidiary corporation of the parent
corporation and the shareholders returned stock of the parent
Corporation back to the parent Corporation.
True
False
24. In 2006, Roma carried out successful section 302 (B) (3)
(complete termination of shareholders interests) redemption as
to stock in Trieste Corporation. In 2013, Roma inherits stock in
Trieste they Corporation from her father. Roma has not violated
the 10 year rule concerning stock redemption under section 302
(B) (3).
True
False
25. It is not possible (i.e. could not happen) for illiquid
incorporation to recognize a gain or loss on the dissipation of
disqualified property.
true
false
26. Losses to the disturbing Corporation in a corporate
liquidation are disallowed in a related-arty situations only if the
property distributed to the shareholder is a non-pro-rata
distribution.

7. true
false
27. At the time of her death in 2013-Gloria owned 19% of the
stock in gene Corporation and 18% of the stock in June
Corporation for purposes of satisfying the more than 35% test
requirement of section 303 of the IRS code, the value of the
stocks may be combined.
True
False
28. A spin-off is where a parent Corporation gives stock of its
subsidiaries to its shareholders and the shareholders give up
nothing in return.
true
false
29. Avian died in 2013 with an adjusted gross estate of
$1,200,000. Avian’s gross estate included 80% of the stock of
Poordone Corporation valued at $4000. Avian have purchased
the stock in 1993 for $80,000. The death taxes and funeral and
administrative expenses for Avian’s estate totaled $125,000.
The executor of Avian’s estate redeemed $20,000 of the stock
Avian owned in Poordone Corporation. As a result of this
transaction, Avian’s estate has a taxable divert income of:
(assume that Avian’s as they does not qualify for any
redemption under section 302 (B) and Poordone Corporation has
substantial
E&P.
$125,000
$75,000
$0
$200,000