Law question data bank

182. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Ques108
Jessica, a cash basis individual, is a 60% shareholder of Crow Corporation, a
regular corporation. On January 1, 2011, Jessica loaned Crow $300,000, with the
principal due in 5 years and 6% interest due each January 1. Crow, an accrual
method, calendar year taxpayer, accrued $18,000 of interest expense on the loan
on December 31, 2011, and paid the $18,000 to Jessica on January 1, 2012. How
much is Crow’s deduction for interest on this loan for 2011? Would your answer
change if Jessica was a 25% shareholder of Crow?

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183. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Ques109
Briefly describe the accounting methods available for adoption by a C
corporation.

184. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Ques110
Briefly describe the charitable contribution deduction rules applicable to C
corporations.

.

185. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Ques111
In connection with the deduction of organizational expenditures under § 248,
comment on the following:

a.

Expenditures
qualifying for the deduction.

b.

Determination
of the deduction amount.

c.

The election
requirement.

186. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Ques112
What is the annual required estimated tax payment for a C corporation? What are
the rules regarding payment of the estimated tax?

187. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Ques113
Discuss the purpose of Schedule M-1. Give two examples of an addition and two
examples of a subtraction that could be reported on Schedule M-1.

188. CHAPTER
2—CORPORATIONS: INTRODUCTION AND OPERATING RULES Ques114
What is the purpose of Schedule M-3? Which corporations are required to file
Schedule M-3?

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