AICPA Certified Public Accountant CPA Regulation - CPA-Regulation FREE EXAM DUMPS QUESTIONS & ANSWERS
Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores'
1994 Form 1040.
In 1992, Joan received an acre of land as an inter-vivos gift from her grandfather. At the time of the gift, the land had a fair market value of $50,000. The grandfather's adjusted basis was $60,000. Joan sold the land in 1994 to an unrelated third party for $56,000.
Determine the amount of income or loss, if any that should be included on page one of the Moores'
1994 Form 1040.
In 1992, Joan received an acre of land as an inter-vivos gift from her grandfather. At the time of the gift, the land had a fair market value of $50,000. The grandfather's adjusted basis was $60,000. Joan sold the land in 1994 to an unrelated third party for $56,000.
Correct Answer: F
Vote an answer
Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).
Wallace purchased 500 shares of Kingpin, Inc. 15 years ago for $25,000. Wallace has worked as an owner/employee and owned 40% of the company throughout this time. This year, Kingpin, which is not an S corporation, redeemed 100% of Wallace's stock for $200,000. What is the treatment and amount of income or gain that Wallace should report?
Correct Answer: D
Vote an answer
Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).
In evaluating the hierarchy of authority in tax law, which of the following carries the greatest authoritative value for tax planning of transactions?
Correct Answer: D
Vote an answer
Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).
John and Mary were divorced in 1991. The divorce decree provides that John pay alimony of $10,000 per year, to be reduced by 20% on their child's 18th birthday. During 1992, John paid $7,000 directly to Mary and $3,000 to Spring College for Mary's tuition. What amount of these payments should be reported as income in Mary's 1992 income tax return?
Correct Answer: C
Vote an answer
Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).
Rich is a cash basis self-employed air-conditioning repairman with 1993 gross business receipts of
$20,000. Rich's cash disbursements were as follows:
What amount should Rich report as net self-employment income?
$20,000. Rich's cash disbursements were as follows:
What amount should Rich report as net self-employment income?
Correct Answer: C
Vote an answer
Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).
Under a $150,000 insurance policy on her deceased father's life, May Green is to receive $12,000 per year for 15 years. Of the $12,000 received in 1987, the amount subject to income tax is:
Correct Answer: C
Vote an answer
Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).
Which payment(s) is(are) included in a recipient's gross income?
I. Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a requirement toward obtaining the degree.
II. A grant to a Ph.D. candidate for his participation in a university-sponsored research project for the benefit of the university.
I. Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a requirement toward obtaining the degree.
II. A grant to a Ph.D. candidate for his participation in a university-sponsored research project for the benefit of the university.
Correct Answer: D
Vote an answer
Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).