美国注册会计师(AICPA/USCPA)考试:REG单项选择题练习及解析(二十)

宏景AICPA2022-05-21 06:01:50

习惯是经过重复、练习而巩固下来的稳定持久的条件反射和自然需要,它体现了实践——认识——再实践”的哲学原理。所以培养良好的学习习惯,是美国注册会计师USCPA备考学习的关键。在平时的USCPA学习过程中,我们要养成课前认真预习,上课注意听讲、勤于思考、课后及时复习,并通过模拟练习加以巩固的学习习惯。

 

今天的免费模拟题练习是关于REG科目的。

 

1. June 30, Gold and Silver are calendar-year C corporations. The corporations have merged, with Gold as a subsidiary of Silver. Silver owns 85% of Gold's voting stock and fair market value (FMV).

Which of the following tax return filings would be appropriate for the two companies?

a. A consolidated return, because Silver owns at least 80% of both the voting stock and FMV of Gold.

b. Two separate returns, because the merger took place before the close of the second quarter.

c. Two separate returns, because Silver owns at least 80% of both the voting stock and FMV of Gold.

d. A consolidated return, because the merger took place before the close of the second quarter.

 

2. Quail, Inc. manufactures consumer products and sells them to distributors. Quail advertises its products to increase sales and enhance the value of its trade name.

What is the appropriate tax treatment for the advertising costs?

a. Amortize the costs over 36 months.

b. Amortize the costs over 15 years.

c. Amortize the costs over 60 months.

d. Deduct the costs currently as ordinary and necessary business expenses.

 

3.Baker, an individual, owned 100% of Alpha, an S corporation. At the beginning of the year, Baker's basis in Alpha Corp. was $25,000. Alpha realized ordinary income during the year in the amount of $1,000 and a long-term capital loss in the amount of $3,000 for this year. Alpha distributed $30,000 in cash to Baker during the year.

What amount of the $30,000 cash distribution is taxable to Baker?

a. $30,000

b. $7,000

c. $0

d. $5,000

 

答案及解析如下:

 

1. On June 30, Gold and Silver are calendar-year C corporations. The corporations have merged, with Gold as a subsidiary of Silver. Silver owns 85% of Gold's voting stock and fair market value (FMV).

Which of the following tax return filings would be appropriate for the two companies?

a. A consolidated return, because Silver owns at least 80% of both the voting stock and FMV of Gold.

b. Two separate returns, because the merger took place before the close of the second quarter.

c. Two separate returns, because Silver owns at least 80% of both the voting stock and FMV of Gold.

d. A consolidated return, because the merger took place before the close of the second quarter.

 

Explanation

Rule: IRC Sections 1501 and 1504 allow certain combinations of corporations (an affiliated group) to file a consolidated income tax return. An affiliated group is one or more chains of corporations connected through stock ownership with a common parent if that parent directly owns stock possessing at least 80% of the total voting power of at least one of the other corporations and having a value equal to at least 80% of the total value of the stock of the corporation.

Choice "a" is correct. Since Silver owns 85% of the voting stock and fair market value of Gold, they can file a consolidated return.

Choice "c" is incorrect. A consolidated return, not two separate returns, is appropriate with the 85% ownership.

Choice "b" is incorrect. A consolidated return, not two separate returns, is appropriate with the 85% ownership. The timing of the merger has nothing to do with the decision.

Choice "d" is incorrect. A consolidated return is appropriate with the 85% ownership. The timing of the merger has nothing to do with the decision.R14-24

 

2. Quail, Inc. manufactures consumer products and sells them to distributors. Quail advertises its products to increase sales and enhance the value of its trade name.

What is the appropriate tax treatment for the advertising costs?

a. Amortize the costs over 36 months.

b. Amortize the costs over 15 years.

c. Amortize the costs over 60 months.

d. Deduct the costs currently as ordinary and necessary business expenses.

 

Explanation

Rule: IRC Section 162 controls the deductibility of trade or business expenses. There is nothing special about advertising costs, except for certain foreign advertising costs. Any business expenses have to be reasonable and related to the taxpayer's business activities.

Choice "d" is correct. Advertising costs which are in the nature of selling expenses (which these expenses appear to be) are deductible if they are reasonable and are related to the taxpayer's business activities.

Choice "b" is incorrect. Advertising costs are expensed, not amortized over 15 years (180 months). Amortization over such a period is for goodwill and covenants not to compete, for example.

Choice "a" is incorrect. Advertising costs are expensed, not amortized over 36 months.

Choice "c" is incorrect. Advertising costs are expensed, not amortized over 60 months.R14-10

 

3.Baker, an individual, owned 100% of Alpha, an S corporation. At the beginning of the year, Baker's basis in Alpha Corp. was $25,000. Alpha realized ordinary income during the year in the amount of $1,000 and a long-term capital loss in the amount of $3,000 for this year. Alpha distributed $30,000 in cash to Baker during the year.

What amount of the $30,000 cash distribution is taxable to Baker?

a. $30,000

b. $7,000

c. $0

d. $5,000

 

Explanation

Choice "b" is correct. The taxability of distributions to shareholders in S corporations with no C corporation earnings and profits is as follows:

1. To the extent of basis in stock - tax free; treated as return of capital.

2. Any distributions in excess of the shareholder's basis - taxable; treated as capital gain.

Based upon this rule and the information in the question, Baker's basis is calculated as follows:

Beginning basis                25,000

Plus: Ordinary income           1,000

Less: Long-term capital loss (  3,000)

Baker's Basis                  23,000

Baker's basis should then be compared to the amount distributed to determine how much constitutes return of capital. In this instance, $23,000 would be nontaxable return of basis, and the remaining $7,000 would be taxable capital gain to Baker.

Choice "c" is incorrect. Baker's basis is less than the cash distributed so there would be some gain.

Choice "d" is incorrect. This choice does not take into account the current year activity of the S corporation in determining Baker's basis.

Choice "a" is incorrect. Based upon the above rule, amounts distributed to the extent of the shareholder's basis are not taxable.

Note: This question is the official released question of the AICPA. The question appears to assume that the S corporation was organized as such and has no prior C corporation earnings and profits. If this were the case (i.e., corporation E&P exist), ordering rules for distributions would apply, and an election would have had to be made to obtain the same tax effects as in the provided choice.


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(责任编辑:杨喜泉)

 

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