CPA Reg Test
A - ✔✔Alex and Myra Burg, married and filing joint income tax returns, derive their entire income from
the operation of their retail candy shop. Their 2019 adjusted gross income was $50,000. The Burgs
itemized their deductions on Schedule A for 2019. The following unreimbursed cash expenditures were
among those made by the Burgs during 2019:
Repair of glass vase accidentally broken in home by dog; vase cost $500 in 2014; fair value $600 before
accident and $200 after accident $90
Without regard to the $100 "floor" and the adjusted gross income percentage threshold, what amount
should the Burgs deduct for the casualty loss in their itemized deductions on Schedule A for 2019?
A. $0
B. $ 90
C. $300
D. $400
A - ✔✔Article 9 of the UCC which governs security interests has added some items that now are covered
by security interests law. Which of the following is true?
A. Security interests in tort claims already assessed by a court of law are covered.
B. After-acquired commercial tort claims are covered.
C. Both the mentioned security interests and after-acquired commercial tort claims are covered.
D. Neither the mentioned security interests and after-acquired commercial tort claims are covered.
A - ✔✔Frank Lyon was held up and robbed of $800 cash in June 2019. One month later, Frank had
$2,000 cash stolen from him by his housekeeper. Frank's adjusted gross income for 2019 was $10,000.
How much was deductible by Frank for theft losses in 2019?
A. $0
B. $1,600
C. $1,700
D. $1,800
,A - ✔✔James, a calendar-year taxpayer, was employed and resided in Boston. On February 4, 2019,
James was permanently transferred to Florida by his employer. James worked full-time for the entire
year. In 2019, James incurred and paid the following unreimbursed expenses in relocating:
Lodging and travel expenses while moving $1,000
Meals while in route to Florida 300
Cost of insuring household goods and personal effects during move 200
Cost of shipping household pets to new home 100
Costs of moving household furnishings and personal effects 3,000
What amount was deductible as moving expenses on James's 2019 tax return?
A. $0
B. $4,500
C. $4,300
D. $4,000
A - ✔✔Montrose sent Bilbo a written offer to sell his tract of land located in Majorsville for $50,000. The
parties were engaged in a separate dispute. The offer stated that it would be irrevocable for 30 days if
Bilbo would promise to refrain from suing Montrose during this time. Bilbo promptly delivered a
promise not to sue during the term of the offer and to forego suit if she accepted the offer. Montrose
subsequently decided that the possible suit by Bilbo was groundless and therefore phoned Bilbo and
revoked the offer 10 days after making it. Bilbo mailed an acceptance on the 30th day. Montrose did not
reply. Under the circumstances
A. Montrose's offer was supported by consideration, and was irrevocable for the 30 day period.
B. Bilbo's promise was accepted by Montrose by his silence.
C. Montrose's revocation, not being in writing, was invalid.
D. Montrose's written offer would be irrevocable even without consideration.
A - ✔✔Part agreed to act as Young's agent to sell Young's land. Part was instructed to disclose that Part
was acting as an agent but not to disclose Young's identity. Part contracted with Rice for Rice to
, purchase the land. After Rice discovered Young's identity, Young refused to fulfill the contract. Whom
does Rice have a cause of action against?
---------Part------------------Young
A.-----------Yes---------------Yes
B. -----------Yes----------------No
C.-----------No----------------Yes
D.-----------No----------------No
A - ✔✔Under the Sales Article of the UCC, the remedies available to a seller when a buyer breaches a
contract for the sale of goods may include
The right to resell
goods identified
to the contract
-------------------------------------The right to stop
-------------------------------------a carrier from
---------------------------------delivering the goods
A) Yes---------------------------------Yes
B) Yes----------------------------------No
C) No---------------------------------Yes
D) No---------------------------------No
A - ✔✔Under the Securities Exchange Act of 1934, which of the following penalties could be assessed
against a CPA who intentionally violated the provisions of Section 10(b), Rule 10b-5 of the Act?
Civil liability of monetary damages
-------------------------Criminal liability of a fine
A - ✔✔Alex and Myra Burg, married and filing joint income tax returns, derive their entire income from
the operation of their retail candy shop. Their 2019 adjusted gross income was $50,000. The Burgs
itemized their deductions on Schedule A for 2019. The following unreimbursed cash expenditures were
among those made by the Burgs during 2019:
Repair of glass vase accidentally broken in home by dog; vase cost $500 in 2014; fair value $600 before
accident and $200 after accident $90
Without regard to the $100 "floor" and the adjusted gross income percentage threshold, what amount
should the Burgs deduct for the casualty loss in their itemized deductions on Schedule A for 2019?
A. $0
B. $ 90
C. $300
D. $400
A - ✔✔Article 9 of the UCC which governs security interests has added some items that now are covered
by security interests law. Which of the following is true?
A. Security interests in tort claims already assessed by a court of law are covered.
B. After-acquired commercial tort claims are covered.
C. Both the mentioned security interests and after-acquired commercial tort claims are covered.
D. Neither the mentioned security interests and after-acquired commercial tort claims are covered.
A - ✔✔Frank Lyon was held up and robbed of $800 cash in June 2019. One month later, Frank had
$2,000 cash stolen from him by his housekeeper. Frank's adjusted gross income for 2019 was $10,000.
How much was deductible by Frank for theft losses in 2019?
A. $0
B. $1,600
C. $1,700
D. $1,800
,A - ✔✔James, a calendar-year taxpayer, was employed and resided in Boston. On February 4, 2019,
James was permanently transferred to Florida by his employer. James worked full-time for the entire
year. In 2019, James incurred and paid the following unreimbursed expenses in relocating:
Lodging and travel expenses while moving $1,000
Meals while in route to Florida 300
Cost of insuring household goods and personal effects during move 200
Cost of shipping household pets to new home 100
Costs of moving household furnishings and personal effects 3,000
What amount was deductible as moving expenses on James's 2019 tax return?
A. $0
B. $4,500
C. $4,300
D. $4,000
A - ✔✔Montrose sent Bilbo a written offer to sell his tract of land located in Majorsville for $50,000. The
parties were engaged in a separate dispute. The offer stated that it would be irrevocable for 30 days if
Bilbo would promise to refrain from suing Montrose during this time. Bilbo promptly delivered a
promise not to sue during the term of the offer and to forego suit if she accepted the offer. Montrose
subsequently decided that the possible suit by Bilbo was groundless and therefore phoned Bilbo and
revoked the offer 10 days after making it. Bilbo mailed an acceptance on the 30th day. Montrose did not
reply. Under the circumstances
A. Montrose's offer was supported by consideration, and was irrevocable for the 30 day period.
B. Bilbo's promise was accepted by Montrose by his silence.
C. Montrose's revocation, not being in writing, was invalid.
D. Montrose's written offer would be irrevocable even without consideration.
A - ✔✔Part agreed to act as Young's agent to sell Young's land. Part was instructed to disclose that Part
was acting as an agent but not to disclose Young's identity. Part contracted with Rice for Rice to
, purchase the land. After Rice discovered Young's identity, Young refused to fulfill the contract. Whom
does Rice have a cause of action against?
---------Part------------------Young
A.-----------Yes---------------Yes
B. -----------Yes----------------No
C.-----------No----------------Yes
D.-----------No----------------No
A - ✔✔Under the Sales Article of the UCC, the remedies available to a seller when a buyer breaches a
contract for the sale of goods may include
The right to resell
goods identified
to the contract
-------------------------------------The right to stop
-------------------------------------a carrier from
---------------------------------delivering the goods
A) Yes---------------------------------Yes
B) Yes----------------------------------No
C) No---------------------------------Yes
D) No---------------------------------No
A - ✔✔Under the Securities Exchange Act of 1934, which of the following penalties could be assessed
against a CPA who intentionally violated the provisions of Section 10(b), Rule 10b-5 of the Act?
Civil liability of monetary damages
-------------------------Criminal liability of a fine
