CPA-Regulation 무료 덤프문제 온라인 액세스

Under the uniform capitalization rules applicable to property acquired for resale, which of the following costs should be capitalized with respect to inventory if no exceptions are met?

• A.Option C
• B.Option A
• C.Option B
• D.Option D

The rule limiting the allowability of passive activity losses and credits applies to:

• A.Personal service corporations.
• B.S corporations.
• C.Widely-held C corporations.
• D.Partnerships.

Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of the following costs should be capitalized with respect to inventory if no exceptions have been met?

• A.Option C
• B.Option A
• C.Option B
• D.Option D

Wallace purchased 500 shares of Kingpin, Inc. 15 years ago for $25,000. Wallace has worked as an owner/employee and owned 40% of the company throughout this time. This year, Kingpin, which is not an S corporation, redeemed 100% of Wallace's stock for $200,000. What is the treatment and amount of income or gain that Wallace should report?

• A.$175,000 ordinary income.
• B.$0
• C.$175,000 long-term capital gain.
• D.$200,000 long-term capital gain.

Elm Corp. is an accrual-basis calendar-year C corporation with 100,000 shares of voting common stock issued and outstanding as of December 28, 1996. On Friday, December 29, 1996, Hall surrendered 2,000 shares of Elm stock to Elm in exchange for $33,000 cash. Hall had no direct or indirect interest in Elm after the stock surrender. Additional information follows:

What amount of income did Hall recognize from the stock surrender?

• A.$18,000 capital gain.
• B.$17,000 capital gain.
• C.$25,000 dividend.
• D.$33,000 dividend.