ACC 455 FINAL EXAM 3 | VERIFIED SOLUTION

ACC 455 FINAL EXAM 3 1) Identify which of following statements is false. A. Members from both House and Senate are on Conference Committee. B. When tax advisors speak of tax law, they usually have in mind just Internal Revenue Code. C. Records of committee hearings are helpful in determining Congressional intent. D. All are false. 2) Which of following courts is not a trial court for tax cases? A. U.S. District Court B. U.S. Court of Federal Claims C. U.S. Bankruptcy Court D. U.S. Tax Court 3) Term tax law includes A. legislation B. treasury regulations C. judicial decisions D. all of above 4) Which of following statements about a partnership is true? A. Partners are taxed on distributions from a partnership. B. Partners are considered employees of partnership. C. A partnership is a taxpaying entity. D. Partners are taxed on their allocable share of income whether it is distributed or not. 5) Which of following statements is incorrect? A. Limited partners' liability for partnership debt is limited to their amount of investment. . In a general partnership, all partners have unlimited liability for partnership debts. . In a limited partnership, all partners participate in managerial decision-making. . All of statements are correct. ) Which of following statements is correct? A. S shareholders are only taxed on distributions. . S shareholders are taxed on their proportionate share of earnings whether or not distributed. . An owner of a C corporation is taxed on his or her proportionate share of earnings. . S shareholders are taxed on their proportionate share of earnings that are distributed. ) Identify which of following statements is true. . Under check-the-box regulations, an LLC that has one member (owner) may be isregarded as an entity separate from its owner. . An unincorporated business may not be taxed as a corporation. . A new LLC that is owned by four members elects to be taxed under its default classification as a partnership) in its first year of operations. entity is prohibited from changing its tax lassification at any time in future. . All are false. 8) Three members form an LLC in current year. Which of following statements is ncorrect? A. LLC can elect to have its default classification ignored. B. If LLC elects to use its default classification, it can elect to change its status to being taxed as a C corporation beginning with third tax year after initial classification. C. LLC's default classification under check-the-box rules is as a partnership