7. Yvonne Corporation manufactures and sells ceramic dinnerware. The company als

Question

7. Yvonne Corporation manufactures and sells ceramic dinnerware. The company also sells dinnerware that is purchased from unrelated foreign producers. During the 2017 tax year, Yvonne had a U. S. profit of $1.3 million (OPAI) and a loss from the imported merchandise of $200,000. What is Yvonne's DPAD? a. $33,000 b. $66,000 c. $99,000 d. $1,080,000 e. None of the above 8. Jackson, Inc. has the following items related to the AMT. Alternative minimum tax base $9,850,290 Regular tax Foreign AMT tax credit Cost of goods sold The corporation's AMT, if any, is: 1,120,152 123,000 2,000,000 a. $O b. $709,906. c. $726,906. d. $1,847,058. e. None of the above. 9. Which AMT adjustment would only be negative? a. Passive activity losses. b. AMT NOL deduction. c. DPAD d. Completed contract method. e. None of the above. 10. Canary Corporation has 5,000 shares of stock outstanding. It redeems in a qualifying stock redemption 1,200 shares for $475,000 at a time when it has paid-in capital of $300,000 and E & Pof S1.5 million. What would be the charge to Canary's E &P; as a result of the redemption? a. $72,000 b. $360,000 c.$432,000 d. $475,000 e. None of the above Page 2 of 7

Explanation / Answer

SOLUTION

7. Yvonne's DPAD = $99,000

DPAD = 9% * $1.1 million

=  $99,000

* The taxable income limitation shall apply.

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.