11. There is an effect of a payment of dividend whenfringe benefits are received by an employee from the company.promissory notes are paid to the employees for the services he hadrendered to his employer.a creditor condones the debt of a corporation.a corporation condones the debt of its stockholders.a.С.d.CS Scanned with CamScanner

The dividend is the distribution of income among the shareholders of the company. It is paid in the…

Answered: 11. There is an effect of a payment of…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 8MCQ: The purpose of Schedule M-1 on the corporate tax return is to: Reconcile accounting (book) income to...

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Similar questions

18. The following are examples of corporate expenses deductible from gross income, except one a. Expenses paid to an advertising firm in order to create a favorable image for the corporation b. Contribution to drum up business like contribution of softdrinks to barrio fiesta c. Premiums on life insurance covering the life of an employee if the beneficiary is his heir d. Representation expenses designed to promote business
Which of the following is true of taxable income? Multiple choice question. A company can deduct interest paid on debt when computing taxable income. A company can deduct dividends paid to shareholders when computing taxable income. A company cannot deduct interest paid on debt when computing taxable income.
I- Interest paid on preferred stock is deductible from gross income of the paying corporation.II- A capital expenditure usually benefits more than one accounting period and is deductible from gross income in the year it is paid or incurred.* True; true False; true true; false false; false Which of the following is true?* Payments which constitute bribes, kickbacks and others of similar nature which are necessary to realized profits are allowed as deductions from gross income. The taxes which are deductible from gross income include the taxes, interest and penalties incident to tax delinquency. Deductions are amounts allowed by the Tax Code to be deducted from gross income arrive at the income tax liability of a taxpayer. Losses from wagering transactions shall be allowed only up the extent of the gains from such transactions. Which statement is correct?* The compensation income of managerial or supervisory employees is subject to fringe benefit tax. The taxable fringe benefits…
When corporations issue stock in exchange for professional services, what account(s) should be debited and what account(s) should be credited?
Why would a creditor of a corporation consider suing shareholders of that corporation for a debt owed by the corporation to the creditor?A. The corporation has gone out of business.B. The debt is for a lot of money.C. The shareholder is usually liable for the corporation’s debts.D. The creditor had a contract with the corporation.
Corporations are required to pay taxes on O A. income from the business O B. operating expenses C. employee bonuses O D. start-up costs
Stockholders' equity can be described as debtor claim on total assets. creditorship claim on total assets. ownership claim on total assets. benefactor's claim on total assets.
To determine the amount of debt a corporation has, the user should examine: O A. Income statement B. Statement of Retained Earnings C. Statement of Cash Flows D. Balance Sheet
In corporations the stockholders are equally liable for the debts of the firm. a. True b. False
Which of the following items of interest expense may be deducted from gross income? Interest deducted in advance by the bank on a loan where no amortization payment has yet been made and the taxpayer reports income on cash basis. O Interest on the corporation's preferred stocks. O Interest for delinquency in the payment of taxes. O Interest paid out of a personal loan by the taxpayer.
Pass through. If the corporation is structured as an S corporation, profits and losses are well-versed to the shareholders, in order that the corporation doesn't pay financial gain taxes. Can you help me understand what that is, with details?
Financial Accounting MCQ

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