Question :
1. A corporation has a June 30 year end. What is the last date it will file its return due for its June 30, 2012 year-end if it files an extension?
a. December 31, 2012
b. September 15, 2012
c. January 15, 2013
d. March 15, 2013
2. Borneo Corporation has $21,000 in present earnings and profits and $5,000 of accumulated earnings and profits. Borneo distributes $20,000 of income to its shareholders on June 15 and another $10,000 on December 15. How much of the December 15 distribution is taxable as a dividend?
a. $21,000
b. $10,000
c. $7,000
d. $5,000
3. Stewart is a 30 percent common partner in STP Partnership. His basis in his partnership interest at the starting of the year was $40,000. In the year, the partnership reported a $30,000 loss and paid off a $120,000 recourse debt. What is Stewart's year-end basis in his partnership interest?
a. 0
b. $4,000
c. $31,000
d. $67,000
4. When does a partner recognize profit on a distribution?
a. In a liquidating distribution when the fair market value of the property received exceeds partnership interest basis.
b. In a nonliquidating distribution and the property received exceeds the fair market value of the partnership interest.
c. In a nonliquidating distribution and the cash received exceeds the basis of the partnership interest.
d. Profit is not recognized until the property received for the partnership interest is sold.
5. Vera and Jake, a married couple with AGI of $321,000 for 2012, have $20,000 of mortgage interest, $8,000 of unreimbursed medical expenses, $4,000 of property taxes, and $9,000 of charitable contributions. How much can they claim for itemized deductions in 2012?
a. $41,000
b. $37 ,000
c. $33,000
d. $32,000
6. Charles gave his three grandsons $20,000 each, his friend, Joe, $15,000, and his daughter $30,000. His second wife, Marla, gave her three children $50,000 each and $50,000 to her church. What are their combined taxable gifts if they do not elect gift splitting?
a. $305,000
b. $230,000
c. $151,000
d. $ 76,000