A complex trust is automatically exempt from the Federal AMT
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: A fiduciary entity may be subject to the AMT.
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An entity usually cannot reasonably account for the profits related to inventory until that inventory is sold in the normal course of business
Indicate whether the statement is true or false
Sara invests $120,000 for a 30 percent interest in a partnership in which the other partners have capital totaling $200,000 before admitting Sara. After distribution of the bonus, what is Sara's capital balance?
A) $60,000 B) $96,000 C) $120,000 D) $144,000
Last year Burch Corporation's cash account decreased by $6,000. Net cash provided by (used in) investing activities was $13,000. Net cash provided by (used in) financing activities was $(30,000). On the statement of cash flows, the net cash provided by (used in) operating activities was:
A. $(23,000) B. $(6,000) C. $(17,000) D. $11,000
[The following information applies to the questions displayed below.]Baltimore Company issued a $9,000 face value discount note to Bank of the Chesapeake on March 1, Year 1. The note had a 5% discount rate and a one-year term to maturity.After accruing all interest expense due as of April 1, Year 1, Baltimore Company made the cash payment for the full amount due (i.e., principal and interest) to Bank of the Chesapeake. How does the cash payment affect the elements of Baltimore's financial statements? Assets=Liab.+EquityRev.?Exp.=Net Inc.Cash FlowA.(9,450)=(9,450)+NANA?NA=NA(9,000) FA/(450)OAB.(8,550)=(8,550)+NANA?NA=NA(8,550) FAC.(9,000)=(9,000)+NANA?NA=NA(9,000) FAD.(9,000)=(9,000)+NANA?NA=NA(8,550) FA/(450)OA
A. Option A B. Option B C. Option C D. Option D