ACCT 424 Entire Course + Final Exam (Updated) Click on the link below to get Entire Course https://devryfinalexams.com/product/acct-424-midterm-exam-updated/ 1. (TCO 2) For the current year, Kelly Corp. had net income per books of $300,000 before the provision for federal income taxes. Included in the net income were the following items: Dividend income from an unaffiliated domestic taxable corporation (taxable income limitation does not apply and there is no portfolio indebtedness) $50,000. Bad debt expense (represents the increase in the allowance for doubtful accounts) $80,000. Assuming no bad debt was written off, what is Kelly's taxable income for the current year? (Points : 5) $250,000 $330,000 $345,000 $380,000 Question 2. 2. (TCO 2) Which statement is incorrect with respect to the treatment of net operating losses by corporations? (Points : 5) A corporation may elect to forgo the carryback period, and just carry forward an NOL. A corporation may claim dividends received deduction in computing an NOL. An NOL is generally carried back 2 years and forward 20 years. Unlike individuals, corporations do not adjust their NOLs for net capital losses or nonbusiness deductions. None of the above Question 3. 3. (TCO 1) Ilene and Frank form Happy Corporation. Ilene transfers equipment worth $475,000 (basis of $100,000) and $25,000 cash to Happy Corporation for 50% of its stock. Frank transfers a building and land worth $525,000 (basis of $200,000) for 50% of Happy's stock and $25,000 cash. Discuss the result of these transfers. (Points : 5) Ilene recognizes a gain of $375,000; Frank recognizes a gain of $325,000. Ilene recognizes a gain of $25,000; Frank recognizes no gain. Neither Ilene nor Frank recognizes gain. Ilene recognizes no gain; Frank recognizes a gain of $25,000. None of the above ACCT 424 Entire Course + Final Exam (Updated) Click on the link below to get Entire Course https://devryfinalexams.com/product/acct-424-midterm-exam-updated/