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P2-U12 · PART 2 · SOURCE CYCLE 2026-2027
C Corporation Overview
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.
Q1.Alder Corporation files late with unpaid tax. What is the general late-filing rate and maximum?
5% per month or part, up to 25%
Q2.Alder Corporation expects $700 of estimated tax for the year. What is generally required?
Make installment payments of estimated tax
Q3.At what rate does Alder Corporation generally figure its federal income tax?
21% of taxable income
Q4.Which form does a corporation generally use to determine applicable-corporation status and calculate CAMT?
Form 4626
Q5.To what should Schedule L shareholder loans generally reconcile for an S corporation?
The sum of the shareholder-loan amounts on Schedules K-1
Q6.Which book-tax reconciliation schedule must an S corporation with at least $10 million of total assets at year-end file instead of Schedule M-1?
Schedule M-3 (Form 1120-S)
Q7.A corporation must make estimated tax payments if it expects its tax due to be _____ or more during the taxable year. A. 1000 B. 5000 C. 10000 D. 500
500
Q8.If an individual taxpayer transfers money or property to a corporation in exchange for stock in that corporation, and immediately afterward the person is in control of the corporation, the exchange is usually ____________. A. Fully taxable. B. A 1031 exchange. C. Partially taxable. D. Not taxable.
Not taxable.
Q9.A C corporation generally must make estimated payments throughout the year. For a calendar-year corporation, when are estimated tax payments normally due? A. April 15, June 15, September 15, and January 15. B. January 15, April 15, June 15, and September 15. C. April 15, June 15, September 15, and December 15. D. March 15, June 15, September 15, and January 15.
April 15, June 15, September 15, and December 15.
Q10.Hartford Bioresources, Inc. is a cash-basis, fiscal-year C corporation. Its tax year ends June 30. When are the installment payments for Hartford Bioresources’ estimated tax payments due? A. Installment payments are due on April 15, June 15, September 15, and December 15. B. Installment payments are due on October 15, December 15, March 15, and June 15. C. Installment payments are due on January 15, March 15, October 15, and February 15. D. Installment payments are due on June 15, August 15, December 15, and February 15.
Installment payments are due on October 15, December 15, March 15, and June 15.
Q11.Every business entity must figure taxable income for an annual accounting period called a: __________. A. Reporting year. B. Tax year. C. Accrual period. D. Fiscal period.
Tax year.