CTA Business Taxation

Question 1

Which tax form does a C corporation use to file its federal income tax return?

Accepted Answer

Form 1120

Answer

Form 1120S

Answer

Form 1065

Answer

Form 1041

Question 2

What is the current flat federal corporate income tax rate under the Tax Cuts and Jobs Act?

Accepted Answer

21%

Answer

25%

Answer

28%

Answer

35%

Question 3

A partnership files which informational return with the IRS?

Accepted Answer

Form 1065

Answer

Form 1120

Answer

Form 990

Answer

Form 1041

Question 4

Which of the following is a key characteristic of an S corporation?

Accepted Answer

Income passes through to shareholders' personal returns

Answer

Subject to double taxation

Answer

Can have an unlimited number of shareholders

Answer

Can have both US and foreign shareholders

Question 5

Under the qualified business income (QBI) deduction, eligible pass-through businesses may deduct up to what percentage of QBI?

Accepted Answer

20%

Answer

10%

Answer

15%

Answer

25%

Question 6

Which depreciation method allows businesses to immediately expense the full cost of qualifying assets in the year of acquisition?

Accepted Answer

Bonus depreciation (Section 168(k))

Answer

MACRS straight-line

Answer

Units of production

Answer

Sum-of-the-years-digits