1. Katrina owns 100% of Money Corporation's stock. Katrina's basis in the stock is $8,000. Money Corporation has E&P of $40,000. If Money Corporation redeems 60% of Katrina's stock for $50,000, Katrina must report dividend income of
A. $8,000
B. $40,000
C. $50,000
D. $0
E. None of the above
2. Dodge Inc., has taxable income of $10 million this year. Which is the maximum DPAD tax savings for this C Corporation?
A. $0
B. $204,000
C. $210,000
D. $306,000
E. $900,000
3. Puzzle Corporation has average gross receipts of $5.6 million, $4.6 million, and $4.7 million in 2012, 2013, and 2014, respectively. Puzzle is
A. not subject to the corporate income tax
B. a small corporation with respect to the AMT
C. subject to the AMT
D. not a small corporation with respect to the AMT
E. None of the above.