CRU exam 3 Comprehensive
Study Guide + Exam Questions &
Solutions Graded A+
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,Select two. Which of the following describe S corporations? -
Answer: 1. Stockholders pay taxes at individual rates based on
share of income/loss.
2. They are state-chartered legal entities with a limited number
of stockholders (not more than 100) that elect to be taxed as a
partnership.
In a partnership business structure the partnership pays taxes,
much like a corporation. - Answer: False
Income from the U.S. Individual Income Tax Return Form 1040
of a sole proprietor is reported on which of the following tax
schedules? - Answer: Schedule C (Form 1040), Profit or Loss
from Business
Which tax form is used to report income, deductions, gains,
losses, etc., from the operations of a partnership to the IRS? -
Answer: 1065
When analyzing tax returns, all of the following are added back
in order to income EXCEPT which one? - Answer: Recurring
cash expenses
,The Cash Flow Analysis Form 1084 is used to analyze and adjust
income from tax returns to determine qualifying income. -
Answer: True
Form 1125-E, Compensation of Officers is required if the total
receipts on Form 1120 are $500,000 or more, and it can be
used to determine the borrower's percentage of ownership
interest. - Answer: True
Select three. Which of the following are determined by the
legal structure of a business? - Answer: 1. The ability of the
business to accumulate capital
2. How income or loss is reported to the Internal Revenue
Service
3. How taxes are paid to the Internal Revenue Service
When underwriting self-employed borrowers, Fannie Mae and
Freddie Mac both require verification of the existence of the
business within how many calendar days prior to the note
date? - Answer: 120
Which schedule indicates whether a partner is a general
partner or a limited partner? - Answer: Schedule K-1
, When manually underwriting a loan for Freddie Mac with a
borrower who is a sole proprietor where the business has been
in existence less than five years, all of the following are always
required EXCEPT: - Answer: ?Current balance sheet and profit
and loss statement?
For loans to borrowers who are sole proprietors of their own
business, at least how many months' self-employment income
must be documented in order for that income to be used for
qualifying purposes? - Answer: Twelve
Select three. Which of the following can be used to identify the
borrower's percentage of ownership interest in a corporation? -
Answer: 1. Form 1125-E
2. Schedule G (Form 1120)
3. Letter from the corporate accountant
In reviewing a borrower's corporate tax returns, how should
nonrecurring other income reported on line 10 of Form 1120 be
handled on Form 1084? - Answer: It should be subtracted from
income.
Study Guide + Exam Questions &
Solutions Graded A+
Professional Academic Assistance Services
Services Offered
• Proctored Exam Assistance
• Online Class Management (Full Course Support)
• Exam Preparation & Study Materials
• Assignments and Coursework Support
• Essay and Research Paper Writing
• Discussion Posts & Responses
• Editing and Proofreading
• Confidential Academic Consultation
Contact Information
Email:
WhatsApp link: https://wa.me/254704846336
Fast Response | Confidential | Reliable Academic
Support
Helping Students Achieve Academic Excellence
,Select two. Which of the following describe S corporations? -
Answer: 1. Stockholders pay taxes at individual rates based on
share of income/loss.
2. They are state-chartered legal entities with a limited number
of stockholders (not more than 100) that elect to be taxed as a
partnership.
In a partnership business structure the partnership pays taxes,
much like a corporation. - Answer: False
Income from the U.S. Individual Income Tax Return Form 1040
of a sole proprietor is reported on which of the following tax
schedules? - Answer: Schedule C (Form 1040), Profit or Loss
from Business
Which tax form is used to report income, deductions, gains,
losses, etc., from the operations of a partnership to the IRS? -
Answer: 1065
When analyzing tax returns, all of the following are added back
in order to income EXCEPT which one? - Answer: Recurring
cash expenses
,The Cash Flow Analysis Form 1084 is used to analyze and adjust
income from tax returns to determine qualifying income. -
Answer: True
Form 1125-E, Compensation of Officers is required if the total
receipts on Form 1120 are $500,000 or more, and it can be
used to determine the borrower's percentage of ownership
interest. - Answer: True
Select three. Which of the following are determined by the
legal structure of a business? - Answer: 1. The ability of the
business to accumulate capital
2. How income or loss is reported to the Internal Revenue
Service
3. How taxes are paid to the Internal Revenue Service
When underwriting self-employed borrowers, Fannie Mae and
Freddie Mac both require verification of the existence of the
business within how many calendar days prior to the note
date? - Answer: 120
Which schedule indicates whether a partner is a general
partner or a limited partner? - Answer: Schedule K-1
, When manually underwriting a loan for Freddie Mac with a
borrower who is a sole proprietor where the business has been
in existence less than five years, all of the following are always
required EXCEPT: - Answer: ?Current balance sheet and profit
and loss statement?
For loans to borrowers who are sole proprietors of their own
business, at least how many months' self-employment income
must be documented in order for that income to be used for
qualifying purposes? - Answer: Twelve
Select three. Which of the following can be used to identify the
borrower's percentage of ownership interest in a corporation? -
Answer: 1. Form 1125-E
2. Schedule G (Form 1120)
3. Letter from the corporate accountant
In reviewing a borrower's corporate tax returns, how should
nonrecurring other income reported on line 10 of Form 1120 be
handled on Form 1084? - Answer: It should be subtracted from
income.
