Question 1

In general, if a shareholder's ownership interest is not diminished as a result of a stock redemption, the Code will treat the transaction as a sale or exchange.

Accepted Answer

A) True 
 B)False

Question 2

Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2016.
-Loss on sale between related parties in 2016.

Accepted Answer

A)  Increase
B)  Decrease
C)  No effectD) None of the above
E) All of the above

Question 3

How does the payment of a property dividend affect E & P?

Accepted Answer

Corporate distributions reduce E & P by ...

Question 4

During the year, Blue Corporation distributes land to its sole shareholder. If the fair market value of the land is less than its adjusted basis, Blue will not be able to recognize a loss on the distribution.

Accepted Answer

A) True 
 B)False

Question 5

Use of MACRS cost recovery when computing taxable income does not require an E & P adjustment.

Accepted Answer

A) True 
 B)False

Exam 13: Corporations: Earnings Profits and Distributions

Use of MACRS cost recovery when computing taxable income does not require an E & P adjustment.

Correct Answer
verified

Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2016. -Loss on sale between related parties in 2016.

Correct Answer
verified

In general, if a shareholder's ownership interest is not diminished as a result of a stock redemption, the Code will treat the transaction as a sale or exchange.

Correct Answer
verified

During the year, Blue Corporation distributes land to its sole shareholder. If the fair market value of the land is less than its adjusted basis, Blue will not be able to recognize a loss on the distribution.

Correct Answer
verified

How does the payment of a property dividend affect E & P?

Correct Answer
verified
Corporate distributions reduce E & P by ...
View Answer

Exam 13: Corporations: Earnings Profits and Distributions

Use of MACRS cost recovery when computing taxable income does not require an E & P adjustment.

Correct AnswerverifiedShow Answer

Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2016. -Loss on sale between related parties in 2016.

Correct AnswerverifiedShow Answer

In general, if a shareholder's ownership interest is not diminished as a result of a stock redemption, the Code will treat the transaction as a sale or exchange.

Correct AnswerverifiedShow Answer

During the year, Blue Corporation distributes land to its sole shareholder. If the fair market value of the land is less than its adjusted basis, Blue will not be able to recognize a loss on the distribution.

Correct AnswerverifiedShow Answer

How does the payment of a property dividend affect E & P?

Correct AnswerverifiedCorporate distributions reduce E & P by ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Corporate distributions reduce E & P by ...
View Answer