Enrolled Agent Exam Prep

ENROLLED AGENT EXAM PREP - PART
2

Whichhoformhoofhobusinesshoentityhoishonothoaholegalhoentityhoseparatehoandhoaparthofromh
oitshoowner?


A.hoCorporation
B.hoPartnership
C.hoSolehoproprietorship
D.hoShocorporationho-hoans--✔✔C

Underhowhichhocircumstancehoishoanhoentityhorequiredhotohoapplyhoforhoahonewhoemployer
hoidentificationhonumber?


A.hoProprietorshiphothathoincorporates
B.hoBusinesshonamehochange
C.hoElectinghoorhorevokinghoShocorphostatus
D.ho50%hochangehoofhointeresthoinhopartnershiphowithinho12homonths.ho-hoans--✔✔A

LLC'shomayhobehoanhoattractivehosmallhobusinesshoalternativehoashoopposedhotohoanhoSho
corphobecausehoLLC'shoofferhothehofollowinghoadvantage(s)honothoavailablehoinhoShocorps
:

A.hoInclusionhoofhoentity-levelholiabilitieshoinhotaxhobasis
B.hoPass-throughhotaxation
C.hoFlexibilityhoinhotypeshoofhoownershoandhoownershiphointerest
D.hoBothhoinclusionhoofhoentity-
levelholiabilitieshoinhotaxhobasishoandhoflexibilityhoinhotypeshoofhoownershoandhoownershipho
interests.ho-hoans--✔✔D

AhodomestichoLLChowithhoatholeasthotwohomembershothathodoeshonothofilehoFormho8832,ho
EntityhoClassificationhoElection,hoishoclassifiedhoas

A.hoAnhoentityhodisregardedhoashoanhoentityhoseparatehofromhoitshoownershobyhoapplyingho
thehoruleshoinhoRegulationshoSectionho301.7701-3
B.hoAhopartnership
C.hoAhocorporation
D.hoAhonon-
entityhothathorequireshomembershotohoreporthothehoincomehoandhorelatedhoexpenseshoonho
Formho1040ho-hoans--✔✔B

, Whichhoofhothehofollowinghostatementshoregardinghoaccountinghomethodshoishofalse?

A.hoIfhoinventorieshoarehonecessary,hothehoaccrualhomethodhoishousedhoforhosaleshoandhop
urchases
B.hoAhocombinationho(hybrid)homethodhoishonothoanhoacceptablehomethodhoofhoaccounting
C.hoAhochangehofromhothehoaccrualhotohothehocashhomethodhoofhoaccountinghorequireshoc
onsenthofromhothehoIRS
D.hoUnderhothehocashhomethodhoofhoaccounting,hogrosshoincomehoincludeshoallhoitemshoof
hoincomehoactuallyhoorhoconstructivelyhoreceivedhoduringhothehoyearho-hoans--✔✔B


Youhocanhocomputehoyourhotaxablehoincomehounderhowhichhoofhothehofollowinghoaccounti
nghomethods?

A.hoHybridhomethod
B.hoAccrualhomethod
C.hoSpecialhomethodhoforhocertainhoitems
D.hoAllhoofhothehoanswershoarehocorrectho-hoans--✔✔D

WhichhoofhothehofollowinghoaccountinghochangeshodohonothorequirehothehofilinghoofhoForm
ho3115hotohorequesthoahochangehoinhoaccountinghomethod?


A.hoCorrectionhoofhoahomathhoerror
B.hoChangehofromhoaccrualhomethodhotohocashhomethod
C.hoChangehoinhothehomethodhoinventoryhoishovalued
D.hoChangehofromhocashhomethodhotohoaccrualhomethodho-hoans--✔✔A

Whichhoofhothehofollowinghoaccountinghomethodshoishonothoanhoacceptablehomethodhoofho
reportinghoincomehoandhoexpenses?

A.hoIfhoanhoinventoryhoishonecessaryhotohoaccounthoforhoyourhoincome,hoyouhomusthouseho
anhoaccrualhomethodhoforhopurchaseshoandhosales.hoYouhocanhousehothehocashhomethodh
oforhoallhootherhoitemshoofhoincomehoandhoexpenses.
B.hoIfhoyouhousehothehocashhomethodhoforhofiguringhoyourhoincome,hoyouhocanhousehotheho
accrualhomethodhoforhofiguringhoyourhoexpenses.
C.hoAnyhocombinationhothathoincludeshothehocashhomethodhoishotreatedhoashothehocashho
method.
D.hoYouhocanhousehodifferenthoaccountinghomethodshoforhoreportinghobusinesshoandhoper
sonalhoitems.ho-hoans--✔✔B

Generally,hoallhoofhothehofollowinghoentitieshomayhousehothehocashhomethodhoofhoaccounti
nghoexcept

A.hoAhofamilyhofarminghocorporationhowithhogrosshoreceiptshoofho$25homillionhoorholess.
B.hoAnhoentityhowithhonohoinventorieshoandhoaveragehogrosshoreceiptshoofho$5homillionhoor
holess.
C.hoAhoqualifiedhopersonalhoservicehocorporation.