Download CPA Regulation (REG). 2024 Final Exam Questions and Answers and more Exams Business Policy and Regulation in PDF only on Docsity!
CPA Regulation (REG). 2024 Final Exam
Questions and Answers
Disclosure of taxpayer information to other is permissible under 3 ways: - Answer>>1. computer processing 2. peer review process 3. Through an administrative order. Itemized deductions not limited to limitation: GIMIC - Answer>>Gambling losses (to the extent of gambling winnings)
- Investment Interest expense 3. Medical Expenses 4. Casualt Losses (non-business) non-deductible taxes - Answer>>Federal Income Taxes 2. Inheritance tax 3. Business Taxes (deductible on Sch. E) Altertrnative Minimum Tax: Adjustments (+/-) PANIC TIME - Answer>>Passive activity Losses, Acc. Dep., NOL's, Installment Income of a Dealer, Contracts (% complet vs. completed) Tax deductions, Mtg. Interest not used 4 house, Medical(limited to 10% of AGI) Misc. deductions are NOT allowed, Exemptions (personal) and standard deduction Tax Preferences - Answer>>Always ADD BACK PPP Private activity bond interest income Percentage depletion the excess over adj. basis of property, pre- 1987 acceleateraed depreciation Organizational & Start-up expenses - Answer>>Tax: 5000 expense maximum remainder amortized over 180 months GAAP- expensed when incurred Capital Losses for corportations - Answer>>Corps can only use to offset Cap gains. Carryback/over= 3/5 applied only to cap gains. carryback/forwards are always treated as a S/T Cap. LOSS
NOL for Corps - Answer>>carryback/forward= 2/20 No Charitable contribution deduction or DRD allowed before calculatiting a NOL Rule 504 under 1933: - Answer>>1. Exempts issuance up to $ million 2. General solicittion is ok 3. must be sold w/in 12 mnths 4. sold to any # of investors (seed capital) 5. resell is ok Rule 506 under 1933: - Answer>>1. Private placement of unlimited dollar amount 2. 35 non-accredited sales to unlimited accredited Rule 505 under 1933: - Answer>>1. Exempts issuances of up t Punitive Damages - Answer>>intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. Although the purpose of punitive damages is not to compensate the plaintiff, the plaintiff will in fact receive all or some portion of the punitive damage award. Not available UCC. suing for NEGLIGENCE- MUST PROVE 4 THINGS: DBCI - Answer>>dUTY OF CARE, BREACH (Lack of Due Care), CASUALITY AND INJURY Prefrential Transfer - Answer>>The transfor of debtors property made fro the benefit of a creditor on account of an antecedent debt while the debtor was insolvent. 1 yr for an insider and 90 days for others. Chapter 7 - Answer>>provides for liquidation of a debtor's estate. n a liquidation proceeding, after the petition is filed, a trustee will be appointed and an automatic stay against creditor collection proceedings goes into effect.
Partnership basis and capital account- Basis= - Answer>>Capital Account + Partners share of liabilities 3 types of IRREVOCABLE offers: UFO - Answer>>Unilateral Contracts where performance has been commenced. Firm offers by merchants, Option Contractons where consideration has been paid to keep offer open. Under the Statute of Frauds what 6 contracts MUST be in writing: MY LEGS - Answer>>Marriage, Contracts that cant be performed with-in a YEAR, Land,Executors to pay estate debts out of personal funds, Sale of GOODS over $500, Contracts to act as a SURETY. 4 exceptions to contracts that must be evidenced in writing SWAP
- Answer>>Specially mfg. goods, Writen confirmation of a contract by if no objection w/in reasonable time, Admission in court, Performance of work under the contract to the extent of performance. To be Negotiable within UCC 3 the instrument must (7) - Answer>>Be in WRITING, SIGNED by the maker or drawer, Contain an UNCONDITIONAL PROMISE to pay, For a FIXED amount, Payable on DEMAND or at a definite time, Be payable to order or to bearer, Contain no additional instruction not authorized by the UCC. An HDC takes a negotiable instrument subject to which of the following (Real or Personal) defenses? - Answer>>REAL only. FAIDS- Forgery, Fraud in the execution, Alteration, Adjudicated insanity, Infancy, Illegality, Duress, Discharge in BK, Sureyship, Statute of limitations has run (3 on drafts, 6 on Notes)
A PMSI creditor: - Answer>>1) Sells the collateral to the debtor on credit & retains a secuirty interest. 2) Advances the funds used by debtor to buy the collateral. NOTE: Did debtor receive collateral w/ Creditors $ or via Credit? If yes then PMSI exists Who has priority when conflicts in collateral interest arise? - Answer>>1) buyers in the ordinary course of business inventory
- PMSI 3) The holder of a perfected secuiry interest in or a judicial lian that has attached to the collateral 4) The holder of an unperfected sec. interest 5) The debtor What 3 elements must exist for a security agreement to ATTACH:
- Answer>>1. Be an AGREEMENT 2. Secured party must give value 3. Debtor must have rights in the Collateral. Charitable contributions on Ind. T/R: - Answer>>Limited to 50% of AGI for L/T Cap Gain Property the limitation is 30% DNI formula - Answer>>Estate (TRust) GI-Expenses= Adj. Total Income + Tax Exempt income - Cap Gains= DNI Trusts deduct the lesser of the amt. distributed or DNI (the bene pays the tax). Cash & Property bequeathed to an individual through a will or estat is valued at: - Answer>>FMV & holding period is L/T An Revocation of an Offer is effective when? - Answer>>RECEIVED Capital assets include: - Answer>>ยท Investment prop. & prop held for personal use. ex: Personal auto, furniture and fixtures, stock and bonds,Real and personal property not used in business, Interest in a partnership,Goodwill of a corporation. ยท Purchased (as opposed to created) copyrights, literary, musical, or artistic compositions.
(failure to explain whereabouts), Willfuly conceeling assets, Indiv- not one, Not obeying ct. orders, Guilty of a bk crime. What debts are not discharged in bk? WAFTED - Answer>>Willful injury, Alimony, Fraud, Taxes, Educational loans, Debts undisclosed in BK petioion Distribution of the debtors estate: - Answer>>Security claimitns, Priority claimants (9 categories), General creditors who filed a timely claim (Bottom of the Barrel) Priority claimaints (9) SAG-WEG-CTI - Answer>>Support obligations, Admin expenses, Gap creditors, Wages, Emp. Benefits, Grain Farmers, Consumers deposits, Consumer deposits 2,425, Taxes, Injury claims caused by DUI Notice - Answer>>Recording Statute that permits a subsequent bona fide purcherser to prevail over a prior grantee who failed to record. Race - Answer>>whoever records first, even w/ prior knowledg of prior conveyences to have greater rights. Race Notice - Answer>>Permits a subsequesnt Bona Fide Purcherser for value better rights than others if RECORDED First and NO NOTICE of prior grantees, Order of Priority in Security Interest - Answer>>The first to file or perfect has priority. Majority Rule for CPA liability - Answer>>liable to client, 3rd party beneficiaries and any forseeable class of 3rd parties.
A negotioable bill of lading: - Answer>>Is negotiable if goods are to be delivered to bearer or to a named party Novation - Answer>>a New Contract substitutes a New Party. The general rule for CPA liability - Answer>>a CPA is liabile to client, 3rd party bene's and forseeable class. The Minority Ultra Mares rule for CPA liability: - Answer>>limits CPA liability to client and intended 3rd party beneficiarys Thank you for your purchase! Need academic assistance? Look no further! ๐ From assignments to exams, essays to study guides, I've got you covered. Specializing in top-notch writing services, including essay writing, report drafting, and research & citation assistance. Whether you need help with assignments, online classes, exams, or academic writing tasks, I'm here to support you every step of the way. I also offer test banks, study guides, and exams for any subject at a favorable price. Access study materials from Stuvia, Docsity, Docmerit, and Course Hero. Feel free to DM me for more information. If you're satisfied with my service, I'd greatly appreciate a positive review! Your feedback helps me improve and assist more students like you. For compliments and complaints, please DM me. Additionally, I'm open to discussing any document or topic you need help with. Let's achieve academic success together! ๐๐ Contact Information: ๐ Email: revisionmaterials01@gmail.com
