d. $81,375 e. None of the above Which of the following statements is correct reg
ID: 2557637 • Letter: D
Question
d. $81,375 e. None of the above Which of the following statements is correct regarding the taxation of C corporations? a. The alternative minimum tax does not apply b. A corporation with taxable income of less than $500 need not file a tax return. c. The due date for a corporate income tax return (ignoring extensions) is the fifteenth day of 22. the third month following the close of the corporation's tax year. d. In general, the required annual payment for corporate estimated taxes is 90% of the corporation's final tax for the current year e. None of the above. Vireo Corporation, a calendar year C corporation, has taxable income of $1.3 million and $3 million for 2016 and 2017, respectively. The minimum 2015 estimated tax installment payments for Vireo are: a. April 15, 2017, S110,500; June 15, 2017, s110,500; September 15, 2017, $110,500; 23, December 15, 2017, S110,500. b. April 15, 2017, $110,500, June 15, 2017, $399,500; September 15, 2017, $399,500; December 15, 2015, $399,500. c. April 15, 2017, $110,500; June 15, 2017, $399,500; September 15, 2017, $255,000; December 15, 2017, $255,000. d. April 15, 2017, $255,000; June 15, 2017, $255,000; September 15, 2017, $255,000; December 15, 2017, $255,000. e. None of the above 24. Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions-subtractions -taxable income. Which of the following items is an addition on Schedule M-1? a. Charitable contributions carryover from previous year b. Proceeds of life insurance paid on death of key employee. c. Charitable contributions in excess of deductible limits. d. Tax-exempt interest. e. None of the above. 25. Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions- subtractions income. Which of the following items is a subtraction on Schedule M-1. a. Book depreciation in excess of allowable tax depreciation. b. Federal income tax per books. c. Premiums paid on life insurance policy on key employee d. Tax-exempt interest. - taxableExplanation / Answer
Answer to Question Number 22
Answer is option C - The due date for a corporate income tax return (ignoring extensions) is the fifteenth day of the third month following the close of the corporation's tax year.
Option A is not correct as Corporations are subject to the alternative minimum tax.
Option D is not correct as In general, the required annual payment for corporate estimated taxes is 100% of the corporation’s final tax.
Answer to Question Number 23
Taxable income for the year 2017 = $3 million
Tax rate = 34%
Therefore total tax liability = $3 million * 34% = $1,020,000
Hence quarterly tax would be = $1,020,000/4 = $255,000
Therefore correct option is D - April 15, 2017 - $255,000, June 15, 2017 - $255,000, September 15, 2017 - $255,000, December 15, 2017 - $255,000
Answer to Question Number 24
The correct option is C - Charitable contributions in excess of deductible limits.
RATIONALE: The other items are subtractions on Schedule M-1.
Answer to Question Number 25
The correct option is D - Tax exempt interest.
RATIONALE: The other items are additions on Schedule M-1.
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