REG Exam
Study online at https://quizlet.com/_hr8c6h
1. If a taxpayer wants to litigate a tax position that is not tax-technical but has
high emotional appeal, in which of the following courts should the taxpayer
choose if he or she wants to request a jury trial?: US District court
2. Which of the following assets would be included in a debtor's bankruptcy
estate in a liquidation proceeding?: Proceeds from a life insurance policy received 90 days after the
petition was filed.
3. Before the provision for federal income tax, Karas Corporation had book
income of $400,000 for year 3. The book income included $100,000 of dividends
received from a taxable unaffiliated domestic corporation. What was Karas
Corporation's taxable income for year 3?: book income 400,000 - DRD 50,000 = 350,000
*since unaffiliated dividends received automatic 50% deduction (100,000 *50%) = 50,000
4. Smith purchased a table from Rex Furniture Store. Rex tendered delivery of
the table after receiving payment in full from Smith. Smith informed Rex that
Smith would be unable to take possession of the table until later that day.
Thieves stole the table before Smith returned. The risk of loss:: Remained with Rex
because Smith had not yet taken possession of the table.
5. Larry plans to gift his daughter $25,000 during the taxable year. Further if
she graduates college he will also gift her $100,000. Which of the gifts are
completed/incomplete?: $25,000 is complete
$100,000 is incomplete
6. Charlie purchased an apartment building on November 16, Year 1, for
$1,000,000. Determine the cost recovery for Year 20.
a.$36,360
b.$32,100
c.$45,500
d.$331,850: $36,360
Rental real property - 27.5 years
(.5) = .03636
.03636 * 1,000,000= 36,360
7. In computing the ordinary income of a partnership, a deduction is allowed
for: Guaranteed Payments to partners
1/5
, REG Exam
Study online at https://quizlet.com/_hr8c6h
8. Wok Corp. has decided to expand the scope of its business. In this connec-
tion, it contemplates engaging several agents. Which of the following agency
relationships is within the statute of frauds and thus should be contained in a
signed writing?: An agency for the forthcoming calendar year that is entered into in Mid-december of the prior
year.
9. With regard to an agreement for the sale of real estate, the statute of frauds-
: does not require that the agreement be signed by all parties.
10. A corporation that has been an S corporation from its inception may:: Have both
passive & nonpassive income: yes
Be owned by a bankruptcy estate: yes
11. if a piece of machinery is sold, use the following: 1231 gain/loss = sold for - basis
12. to establish the defense of fraud in the inducement, one of the elements the
party must generally prove is that:: the other party made a false representation of a material fact
13. Wally, a CPA and a neighbor of Rita's offered to sell his chain saw for $400
to Rita. Rita knew nothing about it and Wally assured her it "would do the
job". Relying on Wally's assurance, Rita purchased the saw. Wally has created a
warranty that:: the saw is capable of cutting trees in Rita's backyard
14. In year 1, Stone, a cash basis taxpayer incorporated her CPA practice. No
liabilities were transferred. The following assets were transferred to the corpo-
ration:
Cash $500
Computer Equipment:
Adj Basis $30,000
FMV $34,000
Cost $40,000: The corporation's total basis is $500 cash + 30,000 Adj Basis for computer
15. The mailbox rule generally makes acceptance of an offer effective at the time
the acceptance is dispatched. The mailbox rule does not apply if:: The offer provides
that an acceptance will not be effective until actually received.
16. In the articles of incorporation it includes:: the name of each incorporator, and the provision
of the issuance of voting stock.
2/5
Study online at https://quizlet.com/_hr8c6h
1. If a taxpayer wants to litigate a tax position that is not tax-technical but has
high emotional appeal, in which of the following courts should the taxpayer
choose if he or she wants to request a jury trial?: US District court
2. Which of the following assets would be included in a debtor's bankruptcy
estate in a liquidation proceeding?: Proceeds from a life insurance policy received 90 days after the
petition was filed.
3. Before the provision for federal income tax, Karas Corporation had book
income of $400,000 for year 3. The book income included $100,000 of dividends
received from a taxable unaffiliated domestic corporation. What was Karas
Corporation's taxable income for year 3?: book income 400,000 - DRD 50,000 = 350,000
*since unaffiliated dividends received automatic 50% deduction (100,000 *50%) = 50,000
4. Smith purchased a table from Rex Furniture Store. Rex tendered delivery of
the table after receiving payment in full from Smith. Smith informed Rex that
Smith would be unable to take possession of the table until later that day.
Thieves stole the table before Smith returned. The risk of loss:: Remained with Rex
because Smith had not yet taken possession of the table.
5. Larry plans to gift his daughter $25,000 during the taxable year. Further if
she graduates college he will also gift her $100,000. Which of the gifts are
completed/incomplete?: $25,000 is complete
$100,000 is incomplete
6. Charlie purchased an apartment building on November 16, Year 1, for
$1,000,000. Determine the cost recovery for Year 20.
a.$36,360
b.$32,100
c.$45,500
d.$331,850: $36,360
Rental real property - 27.5 years
(.5) = .03636
.03636 * 1,000,000= 36,360
7. In computing the ordinary income of a partnership, a deduction is allowed
for: Guaranteed Payments to partners
1/5
, REG Exam
Study online at https://quizlet.com/_hr8c6h
8. Wok Corp. has decided to expand the scope of its business. In this connec-
tion, it contemplates engaging several agents. Which of the following agency
relationships is within the statute of frauds and thus should be contained in a
signed writing?: An agency for the forthcoming calendar year that is entered into in Mid-december of the prior
year.
9. With regard to an agreement for the sale of real estate, the statute of frauds-
: does not require that the agreement be signed by all parties.
10. A corporation that has been an S corporation from its inception may:: Have both
passive & nonpassive income: yes
Be owned by a bankruptcy estate: yes
11. if a piece of machinery is sold, use the following: 1231 gain/loss = sold for - basis
12. to establish the defense of fraud in the inducement, one of the elements the
party must generally prove is that:: the other party made a false representation of a material fact
13. Wally, a CPA and a neighbor of Rita's offered to sell his chain saw for $400
to Rita. Rita knew nothing about it and Wally assured her it "would do the
job". Relying on Wally's assurance, Rita purchased the saw. Wally has created a
warranty that:: the saw is capable of cutting trees in Rita's backyard
14. In year 1, Stone, a cash basis taxpayer incorporated her CPA practice. No
liabilities were transferred. The following assets were transferred to the corpo-
ration:
Cash $500
Computer Equipment:
Adj Basis $30,000
FMV $34,000
Cost $40,000: The corporation's total basis is $500 cash + 30,000 Adj Basis for computer
15. The mailbox rule generally makes acceptance of an offer effective at the time
the acceptance is dispatched. The mailbox rule does not apply if:: The offer provides
that an acceptance will not be effective until actually received.
16. In the articles of incorporation it includes:: the name of each incorporator, and the provision
of the issuance of voting stock.
2/5
