[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[MommyBear]

17–An individual taxpayer (whose adjusted gross income is below $150,000 in the previous year) may avoid the penalty for failure to pay estimated tax for 2014 by:

paying at least ________ of the tax shown on the current year's return or

________ of the tax shown on the prior year's return (assuming that the prior year's return was for a full 12-month period).

A.90%; 90%

B.100%; 100%

C.90%; 100%

D.100%; 90%

[Anonymous]

So far the research questions apparently you dodon't always have to fill in the entire boxes? Sometimes you are just supposed to fill out the section? How would I know what to do?

[Anonymous]

18–In 2014, Best Corp., an accrual-basis calendar year C corporation, received $100,000 in dividend income from the common stock that it held in an unrelated domestic corporation.

The stock was not debt-financed, and was held for over a year. Best recorded the following information for 2014:

Loss from Best's operations ($ 10,000)

Dividends received 100,000

Taxable income (before dividends-received deduction) $ 90,000

========

Best's dividends-received deduction on its 2014 tax return was

A. $100,000

B. $80,000

C. $70,000

D. $63,000

[MommyBear]

I had to think about it before I answered. I wish these things came more naturally to me and I didn't have to think SO hard on questions that actually seem logical.

[Anonymous]

C? If it was 150,000 it would be 110%.

[MommyBear]

Yes! C is correct

[Anonymous]

17 – C?

[Anonymous]

Bucky, D?

[MommyBear]

A?

[CPAfit]

@mommy D. Neither

[MommyBear]

Zubairs–Are you talking about the domestic help question? If so, it's 2 only. Domestic help is not a business expense

[Anonymous]

18 – D is correct – This response uses the correct deduction percentage for Best Corp.'s ownership percentage and correctly limits the dividend received deduction to a percentage of the corporation's taxable income. The limit is calculated by multiplying taxable income (before the dividend received deduction), i.e., $90,000, by the correct dividend received deduction percentage, i.e., 70 percent.

[CPAfit]

@bucky D. $63,000

[Anonymous]

Mommy, 2 only?

[CPAfit]

@mommy ok. I thought since it was an instruction from the taxpayer, the tax preparer had to accept it as it is.

[Author]

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