Question

4.) The rules for consolidated reporting for financial  stament purposes are the same as the rules for consolidated reporting purposes?

True

False

6.) Which of the following items is not a permanent book to tax difference ?

A.) 50% business meal hair cut

B.)fines and penalties

C) severance expenses

D.) officer compensation in excess of 1 million

7) For corporations which of the following regarding net capital losses is true?

A) a corporation that experiences a net capital losses is true

B) a corporation that experiences a net capital loss in year 4 first carries the loss back to year 3 then year 2 and then year 1 before carrying foward

C). net capital loss carry backs are deductible in determining a corporations net operating loss

D). net capital loss crankcase and carryovers create temporary boom differences if they are used before expire

8. Arctic inc reported 25 million in net income before tax for book purposes but only 19 million for federal income tax purposes which of the following could contribute to the difference

A. artci has a wholly owned uk subsidiary

B.artci owns 51% of gator inc a U.S. company

C. artic has favorable permanent and timing book to tax differences

D.) .all of the above

Answer 1

4	TRUE
6	C. Severance Expenses
7	B) a corporation that experiences a net capital loss in year 4 first carries the loss back to year 3 then year 2 and then year 1 before carrying foward
8	C. artic has favorable permanent and timing book to tax differences