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NEW QUESTION: 1
The rule limiting the allowability of passive activity losses and credits applies to:
A. Partnerships.
B. S corporations.
C. Personal service corporations.
D. Widely-held C corporations.
Answer: C
Explanation:
Explanation
Choice "c" is correct. The rule limiting the allowability of passive activity losses and credits applies to
personal service corporations.
Choice "a" is incorrect. The passive activity limitations apply to the various partners in the partnership as
opposed to the partnership itself.
Choice "b" is incorrect. The passive activity limitations apply to the various shareholders in the S
corporation as opposed to the corporation itself.
Choice "d" is incorrect. The passive activity rules do not apply to widely-held C corporations.

NEW QUESTION: 2
Cash payments for interest 15 Retirement of common stock 40 Cash payments to merchandise suppliers 93 Sale of equipment 31 Payment of dividends 38 Purchase of land 9 Cash payment for salaries
4 0 Cash collections from customers 265 Purchase of equipment 44
What are cash flows from financing activities?
A. 0
B. 1
C. 2
Answer: C
Explanation:
CFF = Outlflow from retirement of common stock = 40 Outflow from payment of dividends =
3 8 Total: -78

NEW QUESTION: 3
At Danielson Company, the Monday after Labor Day is a paid holiday. Steve, an employee at Danielson Company, works ninehour days on Tuesday, Wednesday, Thursday, Friday, and Saturday of that week. How many hours of overtime has Steve worked?
A. None
B. Nine
C. Five
D. Thirteen
Answer: C
Explanation:
Explanation: Steve has worked five hours of overtime. According to the Fair Labor Standards Act, paid holidays do not count as overtime. So, for the purpose of his overtime calculation, Steve has only worked 45 hours this week. Therefore, he has only worked five hours of overtime.