ABC Corporation is preparing Schedule M-1 of its Form 1120, US. Corporate Income Tax Return. Which of the following statements is incorrect with regard to the preparation of Schedule M-1?

Which of the following need not be met for a child to qualify as a dependent?

What amount of taxable income must be reported in the 2007 Income Tax Return for Estate and Trusts (Form 1041)?

Which of the following accounting changes does not require the f‌iling of Form 3115 to request a change in the accounting method?

George could not f‌ile his tax return on April 15th as he was out of the country on an assignment. He can request for an extension of time to pay his taxes within 6 months of the due date by f‌iling Form 4868.

Which of the following is income from passive activity?

John along with his spouse Nancy started a new consulting business in partnership. They share profits and losses in the ratio 6:4 respectively. They file a joint return as a married couple at the end of the year. Which of the following is true when they need to report the income and expenses of the consulting business?

Maggi and Philip are web developers. They went into business together and decided that the corporation structure would be in their best interest.

Susan runs a consulting business. The gross receipts for the tax year are $60,000 and the net profit is $45,000. In addition, Susan received $25,000 as wages. She also received stock dividends of $2,000, Municipal Bond interest Of $4,000 and savings account interest of $1,000. What is her adjusted gross income?

A and 8 f‌ile a joint return. They have sold securities in the year 2007 and the sale has resulted in a capital loss of $5792.60. Their taxable income for the year is $58000. How much can they deduct from their income in their joint return?

Jasco Corporation ends its tax year on 31st March. When must they file their income tax return for the year ending March 31st, 2007?