Individual Taxation
C & S Corp & Exempt Organizations
Property, Partnership, Estate, and Gift Taxation
Professional Responsibilities and Securities Regulation
Business Law 1,2,3
100
What is the age limit of a qualifying child?
What is under age 19 or 24 in the case of full-time student
100
A C corporation's net capital losses are: A-Deductible in full from the corporation's ordinary income B-Carried forward indefinitely until fully utilized C-Carried back 3 years and forward 5 years D-Deductible from the corporation's ordinary income only to the extent of $3000
What is carried back 3 years and forward 5 years
100
If the executor of a decedent's estate elects the alternate valuation date and none of the property included in the gross estate has been sold or distributed, the estate assets must be valued as of how many months after the decendent's death?
What is 6 months
100
A tax return preparer may disclose or use tax return information without the consent to: A-Facilitate a suppliers or lender's credit evaluation of the taxpayer B-Accommodate the request of a financial institution that needs to determine the amount of taxpayers debt to it, to be forgiven C-Be evaluated by a quality or peer review D-Solicit additional nontax business
What is C
100
In determining whether the consideration requirement fo form a contract has been satisfied, the consideration exchanged by the parties to the contract must be: A-of approximately equal value B-legally sufficient C-Exchanged simultaneously by the parties D-Fair and reasonable under the circumstances
What is B
200
Name four tax free distributions
What is Return of Capital (No E&P), Stock Split, Stock Dividend (unless cash or other property option/taxable FMV), Life Insurance Dividend
200
Which of the following exempt organizations must file annual information returns? A-Churches B-Private foundations C-Internally supported auxiliaries of churches D-Those with gross receipts of less than $50000 in each taxable year
What is Private foundations
200
Barker acquired a 50% interest in Kode Partnership by contributing $20000 cash and building with an adjusted basis of $26000 and a FMV o $42000. The building was subject to a $10000 mortgage, which was assumed by Kode. The other partners contributed cash only. The basis of Barker's interest in Kode is:
What is $41000
200
Pursuant to Treasury Circular 23, which of the following statements about the return of a client's records is correct? A-The client's records are to be destroyed upon submission of a tax return B-The practitioner may retain copies of the client's records C-The existence of a dispute over fees generally relieves the practitioner of responsibility to return the client's records D-The practitioner does not need to return any client records that are necessary for the client to comply with the client's federal tax obligations
What is B
200
Under the Sales Article of the UCC, which of the following statements is correct regarding the warranty of merchantibility arising when there has been a sale of goods by a merchant seller? A-The warranty must be in writing B-The warranty arises when the buyer relies on the seller's skill in selecting the goods purchased C-The warranty cannot be disclaimed D-The warranty arises as a matter of law when the seller ordinarily sells the goods purchased
What is D
300
Parker, whose spouse died during the preceding year, has not remarried. Parker maintains a home for a dependent child. What is Parker's most advantageous filing status?
What is Qualifying widow(er) with dependent Child
300
An S Corporation may deduct: A-Compensation of officers B-Net operating loss carryovers C-Foreign income taxes D-Charitable contributions within the percentage of income limitation applicable to corporations
What is Compensation of officers
300
In a "like-kind" exchange of an investment asset for a similar asset that will also be recognized on the transaction if both assets consist of: A-Convertible debentures B-Convertible preferred stock C-Partnership Interests D-Rental real estate located in different states
What is D-Rental real estate located in different states
300
The Sox Act of 2002 requires that he officers of a corporation be held accountable to a code of ethics. According to the act, codifications of ethical standards should include provisions for all of the following, except: A-Honest and ethical conduct B-Full, fair, accurate, and timely disclosure in periodic financial statements C-Compliance with laws, rules, and regulations D-Prompt internal reporting of code provisions and accountability for adherence to the code
What is D
300
Under the Negotiable Instruments Article of the UCC, which endorser's liabilities are disclaimed by a "without recourse" endorsement? A-Neither contract nor warranty liability B-Both contract and warranty liability C-Contract liability only D-Warranty liability only
What is C-Contract Liability
400
Jim and Kay Ross contributed to the support of their two children, Dale and Kim, and Jim's widowed parent, Grant. For Year 27, Dale, a 19-year-old full-time college student, earned $4500 as a babysitter. Kim, a 23-year-old bank teller, earned $12000. Grant received $5000 in dividend income and $4000 in nontaxable Social Security benefits. Grant and Kim are U.S. citizens and were over one-half supported by Jim and Kay, but neither of the two currently reside with Jim and Kay. Dale's main place of residence is with Jim and Kay, and he is currently on a temporary absence to attend school. How many exemptions can Jim and Kay claim on their year 27 joint income tax return?
What is 3
400
At the beginning of the year, Data, a C Corporation, had a $45000 deficit in accumulated earnings and profits. For the current year, Data reported earnings and profits of $15000. Data distributed $18000 to its shareholders during the current year. What amount of the distribution is treated as a taxable dividend?
What is $15000
400
Steve and Kay Briar, U.S Citizens, were married for the entire calender year. During the year, Steve gave a $30000 cash gift to his sister. The Briars made no other gift in the year. They each signed a timely election to treat the $30000 gift as made one-half by each spouse. Disregarding the unified credit and estate tax consequences, what amount of the current year gift is taxable to the Briars?
What is $2000
400
Which of the following factors by itself, requires a corporation to comply with the reporting requirements of the Securities Exchange Act of 1934: A-600 employees B-Shares listed on a national securities exchange C-Total assets of $2 mil D-400 holders of equity securities
What is B Shares listed on a nation securities exchange
400
Under the UCC Secured Transactions Article, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? A-Obtaining a duly executed financing statement B-Taking possession on the instrument C-Filing a security agreement D-Perfecting by attachment
What is B-Taking possession of the instrument
500
Lane, a single taxpayer, received $160000 in salary, $15000 in income from an S Corporation in which Lane does not materially participate, and a $35000 passive loss from real estate rental activity in which Lane materially participated. Lane's modified adjusted gross income was $165000. What amount of the real estate rental activity loss was deductible?
What is $15000
500
Lane Inc., an S corporation, pays single coverage health insurance premiums of $4800 per year and family coverage premiums of $7200 per year. Mill is a ten percent shareholder-employee in lane. On Mill's behalf, Lane pays Mill's family coverage under the health insurance plan. What amount of insurance premiums is includible in Mill's gross income?
What is $7200
500
On February 1 year 3, Hall learned that he was bequeathed 500 shares of common stock under his father's will. Hall's father had paid $2500 for the stock 10 years ago. FMV of the stock on Feb. 1 year 3, the date of his father's death, was $4000 and had increased to $5500 six months later. The executor of the estate elected the alternate valuation date for estate tax purposes. Hall sold the stock for $4500 on June 1 year 3, the date that the executor distributed the stock to him. How much income should hall include in his year 3 individual income tax return for the inheritance of the 500 shares of stock that he received from his father's estate?
What is $0. It is inherited property
500
Pix corp is making a $6 mil stock offering. Pix wante the offering exempt from registration under the securities act of 1933. Which of the following requirements would Pix have to comply with for the offering to be exempt?
What is Rule 506
500
Roth and Dixon both claim a security interest in the same collateral. Roth's security interest attached on January 1, year 1, and was perfected by filing on March 1, year 1. Dixon's security interest attached on February 1, year 1, and was perfected on April 1, Year 1, by taking possession of the collateral. Which of the following statements is correct? A-Roth's security interest has priority because Roth perfected before Dixon B-Dixon's security interest has priority because Dixon's interest attach before Roth's interest was perfected C-Roth's security Interest has priority because Roth's security interest attached before Dixon's security interest attached D-Dixon's security interest has priority because Dixon is in possession of the collateral
What is A
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