308 Exam 4 True/False Qs

Ricky is a partner at XYZ partnership and Jojo is the sole shareholder of a C corporation. During the current year, both businesses generated income of $300,000. For the current year, Jojo must report $300,000 of income on his individual tax return.

• True
• False

Under the Check-the-box Regulations, a one-owner LLC that fails to elect to be treated as a corporation will be taxed as a sole proprietorship.

• True
• False

XYZ Corporation is a C corporation that generates taxable income of $600,000 during the current year. If XYZ paid dividends of $100,000 to its shareholders, then the corporation will deduct the dividend and pay taxes on $500,000.

• True
• False

An LLC with one owner can elect to be taxed as a C Corporation.

• True
• False

A Married individual in a specified service business, with a Modified taxable income (taxable income b/f QBID) over $500,000 will have a QBI deduction of 0.

• True
• False

QBID is considered a "For AGI" deduction.

• True
• False

Monique owns a sole proprietorship. The business generated income of $100,000 in 2025. During the year Monique distributed cash of $20,000. Monique must report $80,000 on her individual tax return for 2025.

• True
• False

The accumulated earnings and personal holding company taxes are designed to prevent the accumulation of earnings within a corporation.

• True
• False

In the current year, X Corp which owns stock in Y Corp. X had net operating income of $200,000 (including the dividend) for the year. Y pays X a dividend of $30,000. X takes a dividends received deduction of $15,000. This means that X Corp owns less than 20% of Y Corp.

• True
• False

A partner's profit-sharing, loss-sharing, and capital-sharing ownership percentages can be different.

• True
• False