1. Business B, a calendar year C corporation, has incurred losses for each of the last five years. Before considering depreciation, Business B has an operating loss for this year. Which depreciation technique will maximize the firm’s tax benefits?
>Accelerated Cost recovery system
>Section 179
>Modified accelerated cost recovery system
>Bonus Depreciation
>Straight Line.
2. Which tax consequence should a corporation consider when determining the type of dividend to give to stockholders?
>Stock dividends are typically tax free to shareholders
>Cash dividends are tax free to shareholders
>Stock dividends are tax deductible to the corporation
>Cash dividends are tax deductible to the corporations.
3. Which circumstance qualifies for ordinary loss treatment?
>Stock purchased from another stockholder become worthless
>An affiliated corporation security become worthless
>A capital asset security become worthless
>Stock inherited become worthless.