CRPC COMPLETE ACTUAL PRACTICE
EXAM QUESTIONS AND 100% CORRECT
ANSWERS (DETAILED AND VERIFIED
ANSWERS) | ALREADY GRADED A+ | NEW
RELEASE 2025
Which one of the following statements regarding different forms of property co-
ownership is correct?
A) Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety
(TBE), and community property (CP) are all forms of co-ownership that can be used
by a husband and wife.
B) JTWROS, TBE, and tenancy in common are all forms of co-ownership that
require the consent of other co-owners before an owner can sell his or her interest in
the asset.
C) Payable on death (P.O.D.) and transfer on death (T.O.D.) designations are
completed gifts that give the named person the right to handle the account while the
original owner is alive.
D) JTWROS, TBE, and CP are all forms of co-ownership that do not require a
probate proceeding when one tenant dies. - ANSWER: A
,Harry, a single professor who is age 36, started his Roth IRA three years ago,
contributing $5,000 for his first year. He has since made a contribution of $5,500 in
Year 2 and also in Year 3. He converted a traditional IRA of $17,000 to the Roth IRA
last year. His total contributions are $16,000 plus the $17,000 conversion, and the
account is now worth $36,497. Harry would like to make a complete withdrawal so
that he can buy a new car. He wants to know what his options are and what the tax
consequences would be. Which one of the following statements would be the correct
information for Harry?
A) If a withdrawal of converted IRA funds is made from the Roth account before
five years has elapsed, such a withdrawal may be subject to the 10% penalty.
B) If Harry's Roth IRA meets the five-year holding period, the distribution will be a
qualified distribution.
C) Contribution amounts always come out of a Roth IRA account f - ANSWER: A
Harry, who is 34 years old, contributed $2,000 to a Roth IRA six years ago. By this
year, the investments in his account had grown to $3,785. Finding himself in a
financial bind, Harry is now compelled to withdraw $2,000 from this Roth IRA.
What is the tax and penalty status of this withdrawal?
A) Harry must pay tax and a $200 penalty.
B) Harry does not have to pay any tax or penalty on the $2,000 distribution, even
though he is only 34.
C) Harry must pay the penalty but no tax.
D) Harry must pay tax on the $2,000, but there is no penalty. - ANSWER: B
,Homer and Marge are married. Homer died this year at age 66. Marge is his sole
beneficiary for his IRA. What is/are Marge's option(s) for handling the required
minimum distributions (RMDs) from his IRA assets?
I. Marge must begin distributions in the year following the year Homer died.
Immerge can move Homer's account into her previously existing IRA. She will not
be subject to RMDs until she reaches age 72.
Idiomere’s only requirement is to have the account totally distributed by December
31 of the year with the 10th anniversary of Homer's death.
Image can move Homer's IRA into an inherited IRA. She would have to start RMDs
when Homer would have been 72.
A) I and II
B) II and IV
C) I and IV
D) III only - ANSWER: B
If a security has an average return of 14.2% and a standard deviation of 8.4, what
can be said about the security?
A) The security's returns can be expected to never be negative.
B) The security's returns can be expected to be between 8.4% and 14.2%
approximately 95% of the time.
, C) The security's annual volatility can be expected to be within a range
approximately 8.4% above and 8.4% below the current fair market value.
D) The security's returns can be expected to be between 5.8% and 22.6%
approximately 68% of the time. - ANSWER:D
If an investor wants to accumulate $250,000 over the next 12 years, can invest
$8,000 at the end of each year, and expects to earn an 11% compound return over
the 12 years, what lump sum must she deposit today in the investment to meet her
goal?
A) $71,460
B) $13,808
C) $19,521
D) $9,775 - ANSWER:C
If Tom and Jenny want to save a fixed amount annually to accumulate $2 million by
their retirement date in 25 years (rather than an amount that grows with inflation
each year), what level annual end-of-year savings amount will they need to deposit
each year, assuming their savings earn 7% annually?
A) $55,692
B) $31,621
C) $29,552
D) $54,130 - ANSWER: B
EXAM QUESTIONS AND 100% CORRECT
ANSWERS (DETAILED AND VERIFIED
ANSWERS) | ALREADY GRADED A+ | NEW
RELEASE 2025
Which one of the following statements regarding different forms of property co-
ownership is correct?
A) Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety
(TBE), and community property (CP) are all forms of co-ownership that can be used
by a husband and wife.
B) JTWROS, TBE, and tenancy in common are all forms of co-ownership that
require the consent of other co-owners before an owner can sell his or her interest in
the asset.
C) Payable on death (P.O.D.) and transfer on death (T.O.D.) designations are
completed gifts that give the named person the right to handle the account while the
original owner is alive.
D) JTWROS, TBE, and CP are all forms of co-ownership that do not require a
probate proceeding when one tenant dies. - ANSWER: A
,Harry, a single professor who is age 36, started his Roth IRA three years ago,
contributing $5,000 for his first year. He has since made a contribution of $5,500 in
Year 2 and also in Year 3. He converted a traditional IRA of $17,000 to the Roth IRA
last year. His total contributions are $16,000 plus the $17,000 conversion, and the
account is now worth $36,497. Harry would like to make a complete withdrawal so
that he can buy a new car. He wants to know what his options are and what the tax
consequences would be. Which one of the following statements would be the correct
information for Harry?
A) If a withdrawal of converted IRA funds is made from the Roth account before
five years has elapsed, such a withdrawal may be subject to the 10% penalty.
B) If Harry's Roth IRA meets the five-year holding period, the distribution will be a
qualified distribution.
C) Contribution amounts always come out of a Roth IRA account f - ANSWER: A
Harry, who is 34 years old, contributed $2,000 to a Roth IRA six years ago. By this
year, the investments in his account had grown to $3,785. Finding himself in a
financial bind, Harry is now compelled to withdraw $2,000 from this Roth IRA.
What is the tax and penalty status of this withdrawal?
A) Harry must pay tax and a $200 penalty.
B) Harry does not have to pay any tax or penalty on the $2,000 distribution, even
though he is only 34.
C) Harry must pay the penalty but no tax.
D) Harry must pay tax on the $2,000, but there is no penalty. - ANSWER: B
,Homer and Marge are married. Homer died this year at age 66. Marge is his sole
beneficiary for his IRA. What is/are Marge's option(s) for handling the required
minimum distributions (RMDs) from his IRA assets?
I. Marge must begin distributions in the year following the year Homer died.
Immerge can move Homer's account into her previously existing IRA. She will not
be subject to RMDs until she reaches age 72.
Idiomere’s only requirement is to have the account totally distributed by December
31 of the year with the 10th anniversary of Homer's death.
Image can move Homer's IRA into an inherited IRA. She would have to start RMDs
when Homer would have been 72.
A) I and II
B) II and IV
C) I and IV
D) III only - ANSWER: B
If a security has an average return of 14.2% and a standard deviation of 8.4, what
can be said about the security?
A) The security's returns can be expected to never be negative.
B) The security's returns can be expected to be between 8.4% and 14.2%
approximately 95% of the time.
, C) The security's annual volatility can be expected to be within a range
approximately 8.4% above and 8.4% below the current fair market value.
D) The security's returns can be expected to be between 5.8% and 22.6%
approximately 68% of the time. - ANSWER:D
If an investor wants to accumulate $250,000 over the next 12 years, can invest
$8,000 at the end of each year, and expects to earn an 11% compound return over
the 12 years, what lump sum must she deposit today in the investment to meet her
goal?
A) $71,460
B) $13,808
C) $19,521
D) $9,775 - ANSWER:C
If Tom and Jenny want to save a fixed amount annually to accumulate $2 million by
their retirement date in 25 years (rather than an amount that grows with inflation
each year), what level annual end-of-year savings amount will they need to deposit
each year, assuming their savings earn 7% annually?
A) $55,692
B) $31,621
C) $29,552
D) $54,130 - ANSWER: B
