Acct 560 week 2 quiz solutions (spring 2017)

ACCT 560 – Advanced Studies In Federal Taxes And Management Decisions

Keller Graduate

1. Question: (TCO C) Which is a disadvantage of a sole proprietor?
2. Question: (TCO C) Which is not a characteristic of a partnership?
3. Question: (TCO C) Which is not a requirement of IRC § 351?
4. Question: (TCO C) Which is true with regard to the receipt of boot under IRC § 351?
5. Question: (TCO D) Which is true of equity in a corporation’s capital structure?
6. Question: TCO D) Which of the following scenarios does not result in a taxable stock dividend?
7. Question: (TCO D) Olivia and Tatiana form O-T Squared in 2016. Olivia contributed services worth $24,000 and property worth $1,000, and Tatiana contributed property worth $25,000. Each received 25 shares of O-T Squared. Does the transaction qualify under IRC § 351? If not, why not? Show your work, or provide your rationale.