ENROLLED AGENT EXAM 2024
PREP - PART 2
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which type of income is not subject to self-employment tax?
A. Wages, salaries, and tips received as an employee
B. Non-employee compensation
C. Net profits from sole proprietorship
D. Distributive share of partnership income - ANSWERS-A
QUESTION 2
Mike owns a four-family apartment building and actively participates in the rental
activity. Mike advertised, rented the apartments to the tenants, collected rents, and
made repairs. His brother, Bryan, also owns an apartment building. Bryan spends
more than half his time developing, constructing, renting, managing, and operating
his apartment building as well as providing regular cleaning, linen service, and
made service for the convenience of the tenants. Which brother has self-
employment income from the apartment building?
A. Mike
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, ENROLLED AGENT EXAM 2024
PREP - PART 2
B. Bryan
C. Both
D. Neither - ANSWERS-B
QUESTION 3
Based on the following information, what is the amount of Beth's self-employment
income?
Salary from her S corp $15000
Partnership income (general partner) $8000
Corporate director's fees $1500
Payment from insurance company
for lost income $10000
A. $1500
B. $9500
C. $19500
D. $24500 - ANSWERS-C
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, ENROLLED AGENT EXAM 2024
PREP - PART 2
QUESTION 4
Dan, a calendar-year taxpayer, has the following amounts of gross income for
2016:
Wages $10,000
Interest $2000
Farm Income $200,000
Dan has tax, including self-employment tax, of $20,000, and withholding of
$1000. To avoid any filing or estimated tax penalties, Dan must
A. File an estimated tax payment by January 15, 2017, and pay 60% of the tax due
B. File his tax return and pay all the tax due by March 1, 2017
C. File an estimated tax payment by March 1, 2017, and pay 66 2/3% of the tax
due
D. File his tax return and pay all the tax due by April 15, 2017 - ANSWERS-B
END OF
PAGE 3
PREP - PART 2
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which type of income is not subject to self-employment tax?
A. Wages, salaries, and tips received as an employee
B. Non-employee compensation
C. Net profits from sole proprietorship
D. Distributive share of partnership income - ANSWERS-A
QUESTION 2
Mike owns a four-family apartment building and actively participates in the rental
activity. Mike advertised, rented the apartments to the tenants, collected rents, and
made repairs. His brother, Bryan, also owns an apartment building. Bryan spends
more than half his time developing, constructing, renting, managing, and operating
his apartment building as well as providing regular cleaning, linen service, and
made service for the convenience of the tenants. Which brother has self-
employment income from the apartment building?
A. Mike
END OF
PAGE 1
, ENROLLED AGENT EXAM 2024
PREP - PART 2
B. Bryan
C. Both
D. Neither - ANSWERS-B
QUESTION 3
Based on the following information, what is the amount of Beth's self-employment
income?
Salary from her S corp $15000
Partnership income (general partner) $8000
Corporate director's fees $1500
Payment from insurance company
for lost income $10000
A. $1500
B. $9500
C. $19500
D. $24500 - ANSWERS-C
END OF
PAGE 2
, ENROLLED AGENT EXAM 2024
PREP - PART 2
QUESTION 4
Dan, a calendar-year taxpayer, has the following amounts of gross income for
2016:
Wages $10,000
Interest $2000
Farm Income $200,000
Dan has tax, including self-employment tax, of $20,000, and withholding of
$1000. To avoid any filing or estimated tax penalties, Dan must
A. File an estimated tax payment by January 15, 2017, and pay 60% of the tax due
B. File his tax return and pay all the tax due by March 1, 2017
C. File an estimated tax payment by March 1, 2017, and pay 66 2/3% of the tax
due
D. File his tax return and pay all the tax due by April 15, 2017 - ANSWERS-B
END OF
PAGE 3
