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3. Which of the following is excluded from income?

Compensation from a small service

Interest income from municipal bonds

Income from forgiveness of debt

Dividend income

9. All of the following are personal property except:

Building

Equipment

Automobiles

Furniture

11. King Corporation, a C Corporation has taxable income of $10,000,000 during 2022. What is the tax on the income if the sole shareholder is at the highest tax bracket and is single?

2,500,000

2,100,000

A C Corporation if a flow through entity and does not pay tax

A S Corporation if a flow through entity and does not pay tax

12. Lin's business, a non specified business has taxable income in the amount of $30,000 before the qualified business income deduction. If all the income is qualified business income, how much is her QBI deduction?

$3,000

$7,500

$6,000

$11,100

14. Denise, is a 50% owner of a partnership. The business takes a Wells Fargo loan out where the owners bear the economic risk of loss based on their ownership percentage. If the loan is $1,000,000, what type of liability does Denise bear?

Economic Risk Liability

Wells Fargo Liability

Nonrecourse Liability

Recourse Liability

15. Federal income tax expense in a C Corporation is a book-tax difference.

True

False

16. During the year, Kate Corporation received a $5,000 dividend from ABC, Kate Corporation owns less than 1 percent of the ABC stock. What is ABC's DRD associated with the dividend?

$1,750

$2,500

$3,250

$5,000

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