CANNON CTFA FINAL PAPER UPDATED
COMPLETE QUESTIONS AND CORRECT
ANSWERS
●● What is the Basic Exclusion Amount?
Answer: $15,000,000
●● What is the Annual Exclusion Amount?
Answer: $ 19,000
●● Who is liable for gift tax?
Answer: Donor, Donor's estate, and Donee if Donor fails to pay
●● Federal Estate tax applies to the transfer of what?
Answer: Property at death
●● How is Tentative Gif Tax Calculated?t
Answer: Total gifts of Donor - Annual exclusions, marital deduction,
charitable deduction = taxable gift. Add prior Taxable gifts to reach total
taxable gifts which is a part of tentative tax. Subtract Applicable Credit =
gift tax due
,●● When must Form 706 be filed?
Answer: Within 9 months of Date of Death
●● What is the reporting requirement for Form 706
Answer: If the value of the gross eestate at the date of death, plus taxable
gifts made after 1976, is more than the BASIC EXCLUSION
AMOUNT.
—Will also want to do it if
electing portability
If there is a unique piece of property want on record to value incl
businesses so IRS agrees on value of underlying property
●● Crypto, stock certs, cash, and royalties are examples of what type of
property
Answer: Intangible Personal Property
●● Mineral, water, and air rights are an example of what type of
property?
Answer: Intangible Real Property
●● How is the economy measured in modern econimics?
Answer: GDP (Gross Domestic Product), GNP (Gross National Product)
,●● Difference between GDP and GNP?
Answer: GDP = ONLY domestic products ; GNP= both domestic AND
international activities
●● Nominal and Real adjustments apply to what:
Answer: GDP Adjustments
●● What are the final goods and services at current market prices?
Answer: Nominal GDP Adjustment
"GDP is up 4% and Inflation is up 3%. This means 4-3% = 1% Real
Gross Domestic Product"
●● What is the GDP Real adjustment?
Answer: Adjustment for inflation
"GDP is up 4% and Inflation is up 3%. This means 4-3% = 1% Real
Gross Domestic Product"
●● What type of ownership is subject to probate, transfers via will or
intestate estate, and gives full property rights in life and death?
Answer: Sole Ownership
●● What does the following describe: Weekly unemployment claims,
avg weekly manufacture hours, new orders for manufactures, vendor
performance/deliveries slow, number of building permits and private
, housing units, stock prices, money supply available to spend/lend,
interest rate spread, index o?
Answer: "Leading Indicators"
10 economic indicators used to predict turns in the biz cycle issued by
the bureau of economic analysis
●● What does the following describe: Avg duration of unemployment,,
inventories to sales ratio, manufacturing, and trade; labor costs per unit
of output, average prime rate, number of commercial and industrial
loans, amount of consumer installment credit to personal income ratio,
and consumer price index for service?
Answer: These seven factors are Lagging Economic Indicators that
move with, as to opposed to before or after, the business cycle.
●● What does the following describe: Employees in non-agricultural
jobs, personal income - transfer payments (amt living paycheck-to-
paycheck), industrial production, and trade/manufacturing sales
Answer: These four factors are Coincident Economic indicators
generally turn after the business cycle has turned... documents a turning
point in the business cycle.
●● What type of property interest can be (1) owned by multiple
individuals with undivided interest and survivorship rights that pass to
other owners; (2) that doesn't pass through will, trust, and avoids probate
by operation of law; (3) can be partitioned; and (4) is held by the four
unities: time, title, interest, and possession?
COMPLETE QUESTIONS AND CORRECT
ANSWERS
●● What is the Basic Exclusion Amount?
Answer: $15,000,000
●● What is the Annual Exclusion Amount?
Answer: $ 19,000
●● Who is liable for gift tax?
Answer: Donor, Donor's estate, and Donee if Donor fails to pay
●● Federal Estate tax applies to the transfer of what?
Answer: Property at death
●● How is Tentative Gif Tax Calculated?t
Answer: Total gifts of Donor - Annual exclusions, marital deduction,
charitable deduction = taxable gift. Add prior Taxable gifts to reach total
taxable gifts which is a part of tentative tax. Subtract Applicable Credit =
gift tax due
,●● When must Form 706 be filed?
Answer: Within 9 months of Date of Death
●● What is the reporting requirement for Form 706
Answer: If the value of the gross eestate at the date of death, plus taxable
gifts made after 1976, is more than the BASIC EXCLUSION
AMOUNT.
—Will also want to do it if
electing portability
If there is a unique piece of property want on record to value incl
businesses so IRS agrees on value of underlying property
●● Crypto, stock certs, cash, and royalties are examples of what type of
property
Answer: Intangible Personal Property
●● Mineral, water, and air rights are an example of what type of
property?
Answer: Intangible Real Property
●● How is the economy measured in modern econimics?
Answer: GDP (Gross Domestic Product), GNP (Gross National Product)
,●● Difference between GDP and GNP?
Answer: GDP = ONLY domestic products ; GNP= both domestic AND
international activities
●● Nominal and Real adjustments apply to what:
Answer: GDP Adjustments
●● What are the final goods and services at current market prices?
Answer: Nominal GDP Adjustment
"GDP is up 4% and Inflation is up 3%. This means 4-3% = 1% Real
Gross Domestic Product"
●● What is the GDP Real adjustment?
Answer: Adjustment for inflation
"GDP is up 4% and Inflation is up 3%. This means 4-3% = 1% Real
Gross Domestic Product"
●● What type of ownership is subject to probate, transfers via will or
intestate estate, and gives full property rights in life and death?
Answer: Sole Ownership
●● What does the following describe: Weekly unemployment claims,
avg weekly manufacture hours, new orders for manufactures, vendor
performance/deliveries slow, number of building permits and private
, housing units, stock prices, money supply available to spend/lend,
interest rate spread, index o?
Answer: "Leading Indicators"
10 economic indicators used to predict turns in the biz cycle issued by
the bureau of economic analysis
●● What does the following describe: Avg duration of unemployment,,
inventories to sales ratio, manufacturing, and trade; labor costs per unit
of output, average prime rate, number of commercial and industrial
loans, amount of consumer installment credit to personal income ratio,
and consumer price index for service?
Answer: These seven factors are Lagging Economic Indicators that
move with, as to opposed to before or after, the business cycle.
●● What does the following describe: Employees in non-agricultural
jobs, personal income - transfer payments (amt living paycheck-to-
paycheck), industrial production, and trade/manufacturing sales
Answer: These four factors are Coincident Economic indicators
generally turn after the business cycle has turned... documents a turning
point in the business cycle.
●● What type of property interest can be (1) owned by multiple
individuals with undivided interest and survivorship rights that pass to
other owners; (2) that doesn't pass through will, trust, and avoids probate
by operation of law; (3) can be partitioned; and (4) is held by the four
unities: time, title, interest, and possession?
