ACCT 553 STUDY Start With a Dream /acct553study.com ACCT 553 STUDY Start With a Dream /acct553study.c | Page 15

3. Please describe the purpose of Sch3edules M-1 and M-3. When is a
Schedule M-3 required in lieu of a Schedule M-1. (5 pts.)
Chapter 17
4. Please define and differentiate a Spin-off, Split-off, and Split-up. ( 5
pts.)
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ACCT 553 Week 5 Quiz
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1. (TCO E) For federal tax purposes, royalty income not derived in the
ordinary course of a business is classified as:
2. (TCO F) When comparing corporate and individual taxation, the
following statements are true, except:
3. (TCO H) Al and Amy file a joint return for the 2012 tax year. Their
adjusted gross income is $80,000. They had a net investment income of
$8,000. In 2012, they had the following interest expenses:
Personal credit card interest: $4,000
Home mortgage interest: $8,000
Investment interest (on loans used to buy stocks): $10,000
4. (TCO B) Charitable contribution deductions for capital gains
property made by individuals without a reduction for long-term capital
gains to public charities are limited to: