1. Sunshine Company has book income of $250,000. It also has tax depreciation in excess of book...

1. Sunshine Company has book income of $250,000. It also has tax depreciation in excess of book depreciation of $30,000 and $10,000 of interest on tax-exempt bonds. Without regard to tax expense, what is Sunshine's taxable income? (select one)

a. $210,000

b. $230,000

c. $270,000

d. $290,000

2. The corporate alternative minimum tax exemption begins to phased out for AMT income of (?) and is completely phased out at AMT income of (?) or more. (select)

a. $40,000; $150,000

b. $40,000; $310,000

c. $150,000; $300,000

d. $150,000; $310,000

3. Which of the following will disqualify a corporation from electing Subchapter S status? (select)

a. The corporation has 80 shareholders.

b. The corporation has on class of stock.

c. The election form is signed by 80% of its shareholders.

d. All shareholders are U.S. citizens except for 10% who are resident aliens.