Category: Uncategorized

MasterMind, Inc., a publicly traded firm, is considering loaning a top executive $40,000 to entice him to relocate and manage a new branch office. Owners of MasterMind, Inc. need to be informed that such action violates the law.

Alice Compton, owner of Fashion Design, wants to offer a retirement plan that will give her employees an incentive to maximize their performance. Alice should consider a

A leveraged ESOP can borrow funds to acquire company stock. The employer can make a tax-deductible contribution to the ESOP that lets the trustee repay the loan principal and interest.

Employer contributions to purchase life insurance within a qualified plan are not tax-deductible.

Which of the following spousal survivorship benefits are required by pension plans?(I)qualified pre-retirement survivor lump sum(II)qualified pre-retirement survivor annuity(III)qualified joint and survivor annuity(IV)qualified joint and survivor lump sum

For bonuses paid after the end of the taxable year, what is the maximum amount of time the company can delay paying the bonus and still be allowed to deduct the payment?

What is the typical treatment by the IRS of compensation paid to shareholders that has been disallowed as being unreasonable?

Amalgamated Industries, Inc., wants to install a plan that will be effective in January of next year. Amalgamated Industries uses a calendar year for tax reporting. Which of the following must happen before December of next year?

To claim the exclusion for dependent care assistance benefits under Section 129 the taxpayer must report the care provider’s

Caribon Cruise Tours has a traditional 401(k) plan for employees. Last year, payroll for employees covered under the plan was $500,000, and employee elective deferrals amounted to $100,000. Which of the following is true?