Tax Accounting Exam Review
Course Introduction
Tax Accounting introduces students to the principles and practices of accounting for income taxes in both individual and business contexts. The course covers the fundamentals of tax laws, regulations, and compliance requirements, with a focus on the preparation and reporting of federal and state tax returns. Students learn about the determination of taxable income, allowable deductions, tax credits, and the impact of various accounting methods on tax liability. Emphasis is placed on understanding the ethical responsibilities of tax professionals and the strategic considerations involved in tax planning and decision-making. Through case studies and practical exercises, students gain proficiency in applying tax accounting concepts to real-world scenarios.
Recommended Textbook
South Western Federal Taxation 2019 Comprehensive 42nd Edition by David M. Maloney
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28 Chapters
4038 Verified Questions
4038 Flashcards
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Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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211 Verified Questions
211 Flashcards
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Sample Questions
Q1) Mitigation of the annual accounting period concept
A)Deferral of gains from involuntary conversions
B)Carryforward of net operating losses
C)"No change" is one possible result
D)State income tax applied to visiting nonresident
E)IRS special agent
F)Undoing the "piggyback" result
G)Ideal budget goal as to new tax legislation
H)Every state that has a general sales tax has one
I)Imposed by all states and the Federal government
J)Imposed by some states but not the Federal government
K)Imposed only by the Federal government
L)No correct match provided
Answer: B
Q2) In an office audit, the audit by the IRS takes place at the office of the taxpayer.
A)True
B)False Answer: False
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Chapter 2: Working with the Tax Law
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102 Flashcards
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Sample Questions
Q1) Which Regulations have the force and effect of law?
A) Procedural Regulations
B) Finalized Regulations
C) Legislative Regulations
D) Interpretive Regulations
E) All of these
Answer: C
Q2) A jury trial is available in the following trial court:
A) U.S. Tax Court.
B) U.S. Court of Federal Claims.
C) U.S. District Court.
D) U.S. Circuit Court of Appeals.
E) None of these.
Answer: C
Q3) Arizona is in the jurisdiction of the Eighth Circuit Court of Appeals.
A)True
B)False
Answer: False
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Chapter 3: Computing the Tax
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Sample Questions
Q1) In January 2018, Jake's wife dies and he does not remarry. For tax year 2018, Jake may not be able to use the filing status available to married persons filing joint returns.
A)True
B)False
Answer: True
Q2) Multiple support agreement
Answer: j
Q3) An individual taxpayer uses a fiscal year of March 1 to February 28. The due date of this taxpayer's Federal income tax return is May 15 of each tax year.
A)True
B)False
Answer: False
Q4) Additional standard deduction
Answer: a
Q5) Tax Rate Schedule
Answer: h
Q6) Scholarship funds for tuition
Answer: h
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Chapter 4: Gross Income: Concepts and Inclusions
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Sample Questions
Q1) The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $480 ($480/12 = $40 per month)? a two-year membership costs $720 ($720/24 = $30 per month). Cash payment is required at the beginning of the membership period. On July 1, 2018, the company sold a one-year membership and a two-year membership. For financial reporting purposes, Maroon reports the membership income ratably over the number of months involved. The company should report as gross income from the two contracts:
A) $1,200 in 2018.
B) $960 in 2018.
C) $180 in 2020.
D) $780 in 2019.
E) None of these.
Q2) George and Erin divorced in 2019, and George is required to pay Erin $20,000 of alimony each year. George earns $75,000 a year. Erin is required to include the alimony payments in gross income although George earned the income.
A)True
B)False
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Page 6
Chapter 5: Gross Income: Exclusions
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Sample Questions
Q1) Christie sued her former employer for a back injury she suffered on the job in 2018. As a result of the injury, she was partially disabled. In 2019, she received $240,000 for her loss of future income, $160,000 in punitive damages because of the employer's flagrant disregard for the employee's safety, and $15,000 for medical expenses. The medical expenses were deducted on her 2018 return, reducing her taxable income by $12,000. Christie's 2019 gross income from the above is:
A) $415,000.
B) $412,000.
C) $255,000.
D) $175,000.
E) $172,000.
Q2) Sam was unemployed for the first two months of 2018. During that time, he received $4,000 of state unemployment benefits. He worked for the next six months and earned $14,000. In September, he was injured on the job and collected $5,000 of workers' compensation benefits. Sam's Federal gross income from the above is $18,000 ($4,000+ $14,000).
A)True
B)False
Q3) What Federal income tax benefits are provided for college students?
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Page 7
Chapter 6: Deductions and Losses: In General
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Sample Questions
Q1) Olive, Inc., an accrual method taxpayer, is a corporation that is equally owned by Maurice and Alex, who are brothers. The corporation uses the accrual method of accounting and the shareholders use the cash method. To provide Olive with funds to acquire additional working capital, the shareholders each loan Olive $100,000 with a 6% interest rate. At the end of the tax year, there is unpaid accrued interest of $3,000 due to each shareholder. From a timing perspective, when should Olive deduct this $6,000 and when should Maurice and Alex include the $3,000 in gross income? Olive pays the $3,000 to each shareholder early next year.
Q2) Only under limited circumstances can a loss on the sale of a personal use asset be deducted.
A)True
B)False
Q3) Which of the following can be claimed as a deduction for AGI?
A) Personal casualty losses.
B) Investment interest expenses.
C) Medical expenses.
D) Property taxes on personal use real estate.
E) None of the above.
Q4) Are all personal expenses disallowed as deductions in 2018?
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Sample Questions
Q1) If an election is made to defer deduction of research expenditures, the amortization period is based on the expected life of the research project if less than 60 months.
A)True B)False
Q2) In 2018, personal casualty gains are allowed to offset personal casualty losses. If an excess casualty loss results, it is not deductible (unless attributable to a Federally-declared disaster).
A)True B)False
Q3) Discuss the tax treatment of non-reimbursed losses of an employee in connection with a trade or business.
Q4) A taxpayer who sustains a casualty loss in an area designated by the President of the United States as a disaster area may take the loss in the year in which the loss occurred or elect to take the loss in the previous year. Identify factors that should be considered in deciding in which year to take the loss.
Q5) Losses on rental property are classified as deductions for AGI.
A)True B)False
Page 9
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Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
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Sample Questions
Q1) On July 17, 2018, Kevin places in service a used automobile that cost $25,000. The car is used 80% for business and 20% for personal use. In 2019, he used the automobile 40% for business and 60% for personal use. Determine the cost recovery recapture for 2019.
A) $0
B) $528
C) $2,000
D) $2,500
E) None of the above
Q2) Simpson Company, a calendar year taxpayer, acquires an apartment building on March 22, 2018 for $900,000. What is the maximum cost recovery deduction it may take for 2018?
A) $18,297.
B) $22,617.
C) $25,911.
D) $31,365.
Q3) Discuss the difference between the half-year convention and the mid-quarter convention.
Q4) Discuss the beneficial tax consequences of an SUV not being classified as a passenger automobile.
Page 10
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Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
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Sample Questions
Q1) A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.
A)True
B)False
Q2) When contributions are made to a traditional IRA, they are deductible by the participant. Later distributions from the IRA upon retirement are fully taxed.
A)True
B)False
Q3) Logan, Caden, and Olivia are three unrelated parties who claim the standard deduction. All are married and attend Citron University and each pays tuition of $6,100. Of this payment, Logan can claim a deduction of $4,000? Caden a deduction of $2,000? and Olivia no deduction at all. Explain.
Q4) Felicia, a recent college graduate, is employed as an accountant by an oil company. She would like to continue her education and obtain a law degree. Discuss Felicia's tax status if she attends a local law school on a:
a. Part-time basis.
b. Full-time basis.
Q5) Sue has unreimbursed expenses.
Page 11
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Sample Questions
Q1) Fees for automobile inspections, automobile titles and registration, bridge and highway tolls, parking meter deposits, and postage are not deductible if incurred for personal reasons, but they are deductible as deductions for AGI if incurred as a business expense by a self-employed taxpayer.
A)True
B)False
Q2) Herbert is the sole proprietor of a furniture store. He can deduct real property taxes on his store building as a business deduction but he cannot deduct state income taxes related to his net income from the furniture store as a business deduction.
A)True
B)False
Q3) Capital assets donated to a public charity that would result in long-term capital gain if sold, are subject to the 30%-of- AGI ceiling limitation on charitable contributions for individuals.
A)True
B)False
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Chapter 11: Investor Losses
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Sample Questions
Q1) Identify how the passive activity loss rules broadly classify various types of income and losses. Provide examples of each category.
Q2) Gloria owns and works fulltime at a shop that rents watercraft of various types to tourists who are vacationing at the beach. If she generates a loss from that activity, the loss is subject to the passive activity loss rules because it is rental property.
A)True
B)False
Q3) List the taxpayers that are subject to the passive activity loss rules and summarize the general impact of these rules on these taxpayers.
Q4) Tom participates for 100 hours in Activity A and 450 hours in Activity B, both of which are nonrental businesses.
Both activities are active.
A)True
B)False
Q5) Describe the general rules that limit the deduction of investment interest expense.
Q6) Active participation.
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13
Chapter 12: Tax Credits and Payments
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Sample Questions
Q1) The education tax credits (i.e., the American Opportunity credit and the lifetime learning credit) are available to help defray the cost of higher education regardless of the income level of the taxpayer.
A)True
B)False
Q2) BlueCo incurs $900,000 during the year to construct a facility that will be used exclusively for the care of its employees' pre-school age children during normal working hours. The credit for employer-provided child care available to BlueCo this year is $225,000.
A)True
B)False
Q3) The additional Medicare taxes assessed on high-income individuals carry differing tax rates depending on the tax base.
A)True
B)False
Q4) How does the FICA tax compare to the self-employment tax? How are these two taxes similar and how do they differ?
Q5) Describe the withholding requirements applicable to employers.
Q6) Discuss the treatment of unused general business credits.
Page 14
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Chapter 13: Property Transactions: Determination of Gain or
Loss, Basis Considerations, and Nontaxable Exchanges
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285 Verified Questions
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Sample Questions
Q1) Jake exchanges land used in his business for a different parcel of land to be used in his business. His adjusted basis for $325,000 and the fair market value is $310,000. The fair market value of the new parcel of land is $300,000. In additi receives cash of $10,000. Calculate Jake's realized and recognized gain or loss and his adjusted basis for the assets r
Q2) Dennis, a calendar year taxpayer, owns a warehouse (adjusted basis of $190,000) which is destroyed by a tornado in October 2018. He receives insurance proceeds of $250,000 in January 2019. If before 2021, Dennis replaces the warehouse with another warehouse costing at least $250,000, he can elect to postpone the recognition of any realized gain.
A)True
B)False
Q3) Parker bought a brand new Ferrari on January 1, 2018, for $125,000. Parker was fatally injured in an auto accident on June 23, 2018, when the fair market value of the car was $105,000. Parker was driving a loaner car from the Ferrari dealership while his car was being serviced. In his will, Parker left the Ferrari to his best friend, Ryan. Ryan's holding period for the Ferrari begins on January 1, 2018.
A)True
B)False
Page 15
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Chapter 14: Property Transactions: Capital Gains and
Losses, Section 1231, and Recapture Provisions
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Sample Questions
Q1) Martha is unmarried with one dependent and files as head of household. She had 2018 taxable income of $45,000 which included $16,000 of 0%/15%/20% net long-term capital gain. What is her tax on taxable income using the alternative tax on net long-term capital gain method?
Q2) Orange Company had machinery destroyed by a fire on December 23, 2018. The machinery had been acquired on April 1, 2016, for $49,000 and its adjusted basis was $14,200. The machinery was completely destroyed and Orange received $30,000 of insurance proceeds for the machine and did not replace it. This was Orange's only casualty or theft event for the year. As a result of this event, Orange has:
A) $4,200 ordinary loss.
B) $15,800 § 1245 recapture gain.
C) $14,200 § 1245 recapture gain.
D) $30,000 § 1231 gain.
E) None of the above.
Q3) If a capital asset is sold at a gain, the holding period is important.
A)True
B)False
Q4) Describe the circumstances in which the potential § 1245 depreciation recapture is extinguished.
Page 16
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Chapter 15: Taxing Business Income
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Sample Questions
Q1) Once a taxpayer reaches certain taxable income thresholds, § 199A limits the qualified business income (QBI) deduction. These thresholds ($315,000 for married taxpayers filing jointly and $157,500 for all other taxpayers) are indexed for inflation after 2018.
A)True
B)False
Q2) Qualified business income (QBI) is defined as the ordinary income less ordinary deductions a taxpayer earns from a "qualified trade or business" (e.g., from a sole proprietorship, S corporation, or partnership) conducted in the United States by the taxpayer.
A)True
B)False
Q3) The QBI deduction percentage matches the 21% tax rate applicable to C corporations.
A)True
B)False
Q4) What are some of the issues remaining unresolved with the QBI deduction?
Q5) What is a limited liability company? What favorable nontax and tax attributes does the LLC entity form offer taxpayers?
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Chapter 16: Accounting Periods and Methods
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Sample Questions
Q1) The tax year of one of the principal partners may determine the partnership's tax year.
A)True
B)False
Q2) Color, Inc., is an accrual basis taxpayer. In December 2018, the company received from a customer a $500 claim for defective merchandise. Color paid the customer in January 2019. Also, in December 2018, the company received a bill of $800 for office supplies that had been purchased and used in November 2018. The bill was not paid until January 2019. In January 2019, the company received a claim for $600 for defective merchandise purchased in 2018. Color paid the customer the $600 in February 2018. Assuming Color uses the recurring item exception to economic performance, the company's deductions for 2018 as a result of the above are:
A) $500.
B) $600.
C) $800.
D) $1,300.
E) $1,900.
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18
Chapter 17: Corporations: Introduction and Operating Rules
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Sample Questions
Q1) Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Gold Corporation, a personal service corporation (PSC), had gross receipts of $24 million in 2015, $27 million in 2016, and $25 million in 2017. Which of the corporations will be allowed to use the cash method of accounting in 2018?
A) Copper Corporation only.
B) Gold Corporation only.
C) Both Copper Corporation and Gold Corporation.
D) Neither Copper Corporation nor Gold Corporation.
E) None of the above.
Q2) For purposes of the accumulated earnings tax, earnings can be accumulated for reasonable needs of the business.
List several examples of what is included and several examples of what is not included in the reasonable needs of the business.
Q3) Canary Corporation, which sustained a $5,000 net short-term capital loss during the year, will enter $5,000 as an addition on Schedule M-1 of Form 1120.
A)True
B)False
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Page 19
Chapter 18: Corporations: Organization and Capital Structure
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Sample Questions
Q1) Lynn transfers property (basis of $225,000 and fair market value of $300,000) to Condor Corporation in exchange for § 1244 stock. The transfer qualifies as a nontaxable exchange under § 351. In the current year, Lynn sells the Condor stock for $100,000. Assume Lynn files a joint return with her husband, Ricky. With respect to the sale, Lynn has:
A) An ordinary loss of $125,000.
B) An ordinary loss of $100,000 and a capital loss of $25,000.
C) A capital loss of $125,000.
D) An ordinary loss of $100,000 and a capital loss of $100,000.
E) None of the above.
Q2) Perry organized Cardinal Corporation 10 years ago by contributing property worth $2 million (basis of $450,000) for 2,500 shares of stock in Cardinal, representing 100% of the stock in the corporation. Perry later gave each of his children, Brittany and Julie, 750 shares of stock in Cardinal Corporation. In the current year, Perry transfers property worth $600,000 (basis of $150,000) to Cardinal for 1,000 shares in the corporation. What gain, if any, will Perry recognize on the transfer?
Q3) What is the rationale underlying the tax deferral treatment available under § 351?
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Page 20
Chapter 19: Corporations: Distributions Not in Complete
Liquidation
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Sample Questions
Q1) The stock of Tan Corporation (E & P of $1.5 million) is owned as follows: 90% by Egret Corporation (basis of $900,000), and 10% by Zoe (basis of $70,000). Both shareholders acquired their shares in Tan more than six years ago. In the current year, Tan Corporation liquidates and distributes land (fair market value of $1.1 million, basis of $1.3 million) and equipment (fair market value of $700,000, basis of $410,000) to Egret Corporation, and securities (fair market value of $200,000, basis of $260,000) to Zoe. What are the tax consequences of these distributions to Egret, to Tan, and to Zoe?
Q2) Proceeds of life insurance received upon the death of a key employee (policy had no cash surrender value).
Q3) Which of the following is not a consequence of the double tax on dividends?
A) Corporations have an incentive to retain earnings and structure distributions to avoid dividend treatment.
B) Corporations have an incentive to invest in noncorporate rather than corporate businesses.
C) The cost of capital for corporate investments is increased.
D) Corporations have an incentive to finance operations with debt rather than equity.
E) All of the above are consequences of the double tax on dividends.
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Page 21
Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Sample Questions
Q1) If a parent corporation makes a § 338 election, the subsidiary corporation must be liquidated.
A)True
B)False
Q2) What will cause the corporations involved in a § 368 reorganization to recognize gain or loss? What will cause shareholders of the companies involved in the corporate reorganization to recognize gain or loss? If gain is recognized by shareholders, what are the different tax character possibilities?
Q3) For corporate restructurings, meeting the § 368 reorganization "Type" requirements is all that needs to be considered when planning the structure of the transaction.
A)True
B)False
Q4) For a corporate restructuring to qualify as a tax-free reorganization, the step transaction doctrine must apply.
A)True
B)False
Q5) What are the tax consequences of a § 332 liquidation to the parent corporation, subsidiary corporation, and minority shareholder?
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Chapter 21: Partnerships
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Q1) Tim and Darby are equal partners in the TD Partnership. Partnership income for the year is $60,000. Tim needs cash in order to pay tax on his share of the partnership income, but Darby wants to leave the cash in the partnership for expansion. If the partners agree, it is acceptable for TD to distribute $8,000 to Tim, and no cash or other property to Darby.
A)True
B)False
Q2) If a partnership allocates losses to the partners, the partners must first apply the passive loss limitations, then the basis limitation, and finally the at-risk limitations. If all three hurdles are met, the partner may deduct the loss.
A)True
B)False
Q3) A distribution can be "proportionate" (as defined for purposes of Subchapter K) even if only one partner receives assets from the partnership.
A)True
B)False
Q4) Business purpose
Q5) Entity concept
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Chapter 22: S Corporations
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Sample Questions
Q1) A service-type S corporation shareholder cannot claim the 20% QBI deduction.
A)True
B)False
Q2) AAA can have a negative balance.
A)True
B)False
Q3) Which of the following reduces a shareholder's S corporation stock basis?
A) Depletion deductions in excess of the basis of property.
B) Illegal kickbacks paid.
C) Nontaxable income.
D) Sales income.
E) A 20% QBI deduction.
Q4) Separately stated items are listed on Schedule __________________ of the Form 1120S.
Q5) Depreciation recapture income is a Schedule K item on the Form 1120S. A)True
B)False
Q6) Depreciation recapture income is a ___________________ (separately, nonseparately) computed amount.
Q7) Discuss two ways that an S election may be terminated.
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Chapter 23: Exempt Entities
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Q1) Federal agencies exempt from Federal income tax under § 501(c)(1) are not subject to the unrelated business income tax (UBIT).
A)True
B)False
Q2) Which of the following statements are correct with respect to the unrelated business income tax?
A) Under certain circumstances, a corporate sponsorship payment can be classified as not being an unrelated trade or business.
B) Under certain circumstances, a casino game can be classified as not being an unrelated trade or business.
C) Under certain circumstances, the exchanging or renting of membership lists to other exempt organizations can be classified as not being an unrelated trade or business.
D) Only a. and c. are correct.
E) a., b., and c. are all correct.
Q3) Tax on self-dealing
Q4) A church is one of the types of exempt organizations.
A)True
B)False
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25
Chapter 24: Multistate Corporate Taxation
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Q1) State-level NOL.
Q2) By making a water's edge election, the multinational taxpayer can limit the reach of unitary principles to the apportionment factors and income of its U.S. and E.U. affiliates.
A)True
B)False
Q3) The use tax is designed to complement the sales tax. A use tax typically covers purchases made out of state and brought into the jurisdiction.
A)True
B)False
Q4) The most commonly used state income tax apportionment formula is:
A) Sales factor only.
B) Sales factor double-weighted.
C) Sales factor equally weighted with property and payroll.
D) Payroll factor only.
Q5) When a ________________ is in effect, out-of-state sales that are not subject to tax in the destination state are pulled back into the sales factor numerator of the origination state.
Q6) Deduction for advertising expenditures.
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Chapter 25: Taxation of International Transactions
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Q1) ForCo, a non-U.S. corporation based in Aldonza, purchases widgets from USCo, Inc., its U.S. parent corporation.
The widgets are sold by ForCo to an unrelated foreign corporation in Aldonza. The income from sale of the widgets by ForCo is Subpart F foreign base company sales income.
A)True
B)False
Q2) Activity that creates the potential for effectively connected income.
Q3) Treasury powers over transfer pricing.
Q4) LocalCo merges into HeirCo, a non-U.S. entity, in a transaction that would qualify as a "Type A" reorganization.
The resulting realized gain is tax-deferred under U.S. income tax law, using §§ 351 and 368.
A)True
B)False
Q5) Bilateral agreement between two countries related to tax issues.
Q6) In international corporate income taxation, what are the uses of the "sourcing rules" in computing Federal taxable income?
Q7) A country with very low or no income tax.
Page 27
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Chapter 26: Tax Practice and Ethics
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Q1) A ________________ % penalty may result when the value of an asset contributed to a charity is reported at an amount that exceeds 150% of the correct valuation.
Q2) Failure to pay a tax that is due.
Q3) After receiving a ninety-day letter, the taxpayer has 90 days to:
A) Pay any outstanding tax, interest, and penalties.
B) Appeal the dispute to the Tax Court.
C) Either a. or b.
D) Neither a. nor b.
Q4) Circular 230 applies to all paid tax practitioners. But attorneys, CPAs, and enrolled agents are exempt from the Circular 230 rules, because each of the groups has its own code of professional conduct.
A)True
B)False
Q5) If the taxpayer comes to the office of the IRS for the audit of a tax return, the review is called a(n)____________________ audit.
Q6) Substantial understatement of tax liability.
Q7) Fraudulent failure to file a tax return.
Q8) Undervaluation of a reported item.
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Chapter 27: The Federal Gift and Estate Taxes
Available Study Resources on Quizplus for this Chatper
141 Verified Questions
141 Flashcards
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Sample Questions
Q1) Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister.
Q2) Pursuant to Corey's will, Emma (Corey's sister) inherits his property. Emma dies in a later tax year. The estate tax attributable to the inclusion of the property in Corey's gross estate was $300,000. The estate tax attributable to the inclusion of the property in Emma's gross estate is $400,000. Emma's credit for the tax on prior transfers is:
A) $0 if Emma died 9 1/2 years after Corey.
B) $300,000 if Emma died 3 years after Corey.
C) $400,000 if Emma died 1 year after Corey.
D) $240,000 if Emma died 5 1/2 years after Corey.
Q3) To make the election to split gifts, spouses must file a Form 709 (Federal gift tax return).
A)True
B)False
Q4) Lily pays for her grandson's college expenses. Under what conditions might such payments not constitute a gift?
Q5) Casualty loss to property after the death of the owner.
Q6) Interest on municipal bonds accrued after death.
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Chapter 28: Income Taxation of Trusts and Estates
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/7735
Sample Questions
Q1) The entity can choose between the cash and accrual methods of reporting its income and deductions.
Q2) The Raja Trust operates a welding business. Its current-year cost recovery deductions properly amount to $75,000. Raja's accounting income was $100,000, of which $40,000 was distributed to first-tier beneficiary Chuck, $25,000 was distributed to second-tier beneficiary Ruby, and $35,000 was accumulated by the trustee. Ruby also received a $25,000 discretionary corpus distribution. Raja's DNI was $80,000. Identify the treatment of Raja's cost recovery deductions.
Q3) When a beneficiary receives a distribution from a trust of an asset other than cash, generally a(n)____________________ basis is assigned to the asset.
Q4) Under the Federal income tax rules for trusts and estates, a(n) ________________ generally must use a calendar tax year, but a(n)________________ can select any tax year-end.
Q5) Income beneficiary Molly wants to receive all of the municipal bond interest income of the Brenner Trust. A special allocation of this sort must be supported by a non-tax
Q6) The fiduciary in charge of an estate.
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