1.Current tax law imposes a $1 million limitation on the
deductibility of executive compensation . Should such limitation be reta ined
or repealed? Give reasons for your opinion .
2. Collins Corporation pa id a $30,000 alternative minimum
tax in 2017. What AMT benefit (if any) is availab le co reduce federal income
taxes paid in the current tax year or in a future tax year?
3. The accumu lated earnings tax is effectively a penalty on
corporations .
a. What is the purpose of the accumulated earn – ings tax?
b. Why does the “reasonab le needs of the
business” exception either reduce or eliminate the accumulated earnings
tax burden for many corporations?
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