Solved by verified expert :1409. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #16
A major benefit of the S corporation election is the general avoidance of
double taxation.
a.
True
b. False
1410. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #17
Obtaining a deduction on payments made by a C corporation to shareholders is a
technique for reducing double taxation.
a.
True
b. False
1411. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #18
A corporation may alternate between S corporation and C corporation status each
year, depending on which results in more tax savings.
a.
True
b. False
1412. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #19
If a C corporation has earnings and profits at least equal to the amount of a
distribution, the tax consequences to the shareholders are the same, regardless
of whether the distribution is classified as a dividend or as a stock
redemption.
a.
True
b. False
1413. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #20
When a C corporation is classified as a small corporation for AMT purposes,
both the corporation and its shareholders are exempt from the AMT.
a.
True
b. False
1414. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #21
An S corporation is notsubject to
the AMT, but its shareholders are in that the S corporation’s AMT adjustments
and preferences are passed through to them.
a.
True
b. False
1415. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #22
The AMT statutory rate for C corporations and for S corporation shareholders on
the AMT base is 20%.
a.
True
b. False
1416. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #23
The AMT tax rate for a C corporation is less than the regular tax rate for C
corporations.
a.
True
b. False
1417. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #24
C corporations and S corporations can generate an AMT adjustment known as
Adjusted Current Earnings (ACE).
a.
True
b. False
1418. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #25
The ACE adjustment associated with the C corporation AMT can only be positive.
a.
True
b. False
1419. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question TF #26
An S corporation election for Federal income tax purposes also is effective for
all states’ income tax purposes.
a.
True
b. False
1420. CHAPTER 13—COMPARATIVE
FORMS OF DOING BUSINESS Question TF #27
The tax treatment of S corporation shareholders with respect to fringe benefits
is not the same as the tax treatment
for C corporation shareholders but is the same as the fringe benefit treatment
for partners.
a.
True
b. False
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
