The minimum accumulated earnings credit is
a. $150,000 for all corporations.
b. $150,000 for nonservice corporations only.
c. $250,000 for all corporations.
d. $250,000 for nonservice corporations only.
Answer: D
Tax
- The uniform capitalization method must be used by I. Manufacturers of tangible personal property. II. Retailers of personal property with $2 million dollars in average annual gross receipts for the three preceding years.
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- Dr. Berger, a physician, reports on the cash basis. The following items pertain to Dr. Berger's medical practice in 2014: - Cash received from patients in 2014: $200,000 - Cash received in 2014 from third-party reimburser for services provided by Dr. Berger in 2013: $30,000 - Salaries paid to employees in 2014 : $20,000 - Year-end 2014 bonuses paid to employees in 2015: $1,000 - Other expenses paid in 2014: $24,000 What is Dr. Berger's net inocme for 2014 from his medical practice?
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- Which of the following taxpayers may use the cash method of accounting?
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- Mr. and Mrs. Alvin Charak took a foster child, Robert, into their home in 2015. A state welfare agency paid the Charaks $3,900 during the year for related expenses. Actual expenses incurred by the Charaks during 2015 in caring for Robert amounted to $3,000. The remaining $900 was spent by the Charaks in 2015 towards their own personal expenses. How much of the foster child payments is taxable income to the Charaks in 2015?
- Income in respect of a cash-basis decedent
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- Darr. an employee of Sorce C corporation, is not a shareholder. Which of the following would be included in a taxpayer's gross income?
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- In July 1996, Dan Farley leased a building to Robert Shelter for a period of fifteen years at a monthly rental of $1,000 with no option to renew. At that time the building had a remaining estimated useful life of twenty years. Prior to taking possession of the building, shelter made improvements at a cost of $18,000. These improvements had an estimated useful life of twenty years at the commencement of the lease period. The lease expired on June 30, 2015, at which point the improvement had a fair market value of $2,000. The amount that Farley, the landlord, should include in his gross income for 2015 is
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