Multiple choice

1. Orlando has two employees who earned the following amounts evenly during 2011: 

Jason $17,000 
Evelyn 15,000 

If Orlando timely pays 5.4 percent for state unemployment tax, what is the amount of his 2011 FUTA after the state tax credit?


A) $1,728 


B) $256 


C) $0 


D) $112 


E) $756

2. For 2011, the Butternut Corporation has net income on its books of $75,000, including the following items: Net capital losses $10,000 
Federal income tax expense 22,250 
Federal tax depreciation exceeds the depreciation deducted on the books by $7,250. What is the corporation's taxable income?




A) $97,250 


B) $75,000 


C) $85,000 


D) $107,250 


E) $100,000 




3. Ted forms the Nutshell Corporation during the 2011 tax year. To form the corporation, Ted transfers assets having a fair market value of $550,000 to Nutshell Corporation for 100 percent of the corporation's stock. Ted's adjusted basis in the assets transferred was $250,000 and Nutshell Corporation assumed a $175,000 mortgage on the assets. If the fair market value of the stock received by Ted is $375,000, what is his basis in the stock received from the corporation?



A) $75,000 


B) $425,000 


C) $550,000 


D) $375,000 


4. On August 31, 2011, Roberta acquired a 20 percent interest in Zelkova Company, a partnership, by contributing property with an adjusted basis of $8,500 and a fair market value of $15,000. The property was subject to a mortgage of $10,000, which was assumed by Zelkova Company. What is Roberta's basis in her partnership interest in Zelkova Company immediately after the partnership contribution?


A) $6,500 


B) $500 


C) $8,500 


D) $3,000 


E) $7,000