Solved by verified expert :1421. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #28
Some fringe benefits always provide a deduction for the employer and are always
excluded from the gross income of the employee.
a.
True
b. False
1422. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #29
Of the corporate types of entities, all are subject to double taxation on
current earnings.
a.
True
b. False
1423. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #30
If the amounts are reasonable, salary payments to shareholder-employees can
reduce or avoid the double taxation result of a C corporation.
a.
True
b. False
1424. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #31
If lease rental payments to a noncorporate shareholder-lessor are classified as
unreasonable, the taxable income of a C corporation remains the same and the
gross income of the shareholder increases.
a.
True
b. False
1425. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #32
If the IRS reclassifies debt as equity under § 385, the repayment of the debt
by the corporation to the shareholder automatically is treated as a dividend.
a.
True
b. False
1426. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #33
Actual dividends paid to shareholders result in double taxation. Likewise,
deemed dividends (e.g., free use of corporate assets by a shareholder) result
in double taxation.
a.
True
b. False
1427. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #34
An effective way for all C corporations to avoid double taxation is not to make dividend distributions.
a.
True
b. False
1428. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #35
The accumulated earnings tax rate in 2011 is the same as the highest tax rate
for a C corporation.
a.
True
b. False
1429. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #36
A corporation can avoid the accumulated earnings tax by demonstrating that it
has plans to distribute earnings at a later date.
a.
True
b. False
1430. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #37
Only C corporations are subject to the accumulated earnings tax (i.e., S
corporations are not).
a.
True
b. False
