They have delicate perception of the REG Questions study quiz over ten years. So they are dependable. You will have a big future as long as you choose us! How you can gain the REG Questions certification with ease in the least time? The answer is our REG Questions study materials for we have engaged in this field for over ten years and we have become the professional standard over all the exam materials. You can free download the demos which are part of our REG Questions exam braindumps, you will find that how good they are for our professionals devote of themselves on compiling and updating the most accurate content of our REG Questions exam questions. They have sublime devotion to their career just like you, and make progress ceaselessly.
Because it can help you prepare for the REG Questions exam.
We boost professional expert team to organize and compile the REG - CPA Regulation Questions training guide diligently and provide the great service. So it is of great importance for a lot of people who want to pass the exam and get the related certification to stick to studying and keep an optimistic mind. According to the survey from our company, the experts and professors from our company have designed and compiled the best Valid REG Exam Cost cram guide in the global market.
If you purchase our REG Questions preparation questions, it will be very easy for you to easily and efficiently find the exam focus. More importantly, if you take our products into consideration, our REG Questions study materials will bring a good academic outcome for you. At the same time, we believe that our REG Questions training quiz will be very useful for you to have high quality learning time during your learning process.
AICPA REG Questions - Our research materials have many advantages.
Through all these years' experience, our REG Questions training materials are becoming more and more prefect. Moreover, we hold considerate after-sales services and sense-and-respond tenet all these years. So if you get any questions of our REG Questions learning guide, please get us informed. It means we will deal with your doubts with our REG Questions practice materials 24/7 with efficiency and patience.
You really can't find a more cost-effective product than REG Questions learning quiz! Our company wants more people to be able to use our products.
REG PDF DEMO:
QUESTION NO: 1
Don Wolf became a general partner in Gata Associates on January 1, 1989, with a 5% interest in
Gata's
profits, losses, and capital. Gata is a distributor of auto parts. Wolf does not materially participate in the
partnership business. For the year ended December 31, 1989, Gata had an operating loss of
$100,000.
In addition, Gata earned interest of $20,000 on a temporary investment. Gata has kept the principal temporarily invested while awaiting delivery of equipment that is presently on order. The principal will be
used to pay for this equipment. Wolf's passive loss for 1989 is:
A. $0
B. $4,000
C. $5,000
D. $6,000
Answer: C
Explanation
Choice "c" is correct. Wolf's passive loss for 1989 is $5,000 ( $100,000 operating loss * 5% interest in partnership).
Choice "a" is incorrect. Wolf did not materially participate in the partnership, so the loss was passive.
Choice "b" is incorrect. Wolf's passive loss of $5,000 could not be reduced by his distributive share of the
partnership's "interest income" totaling $1,000. Interest income is considered "portfolio income," and
neither the partnership nor a partner can offset it against passive losses.
Choice "d" is incorrect. No items of income or deduction from portfolio income or activities in which the
taxpayer materially participates may be combined or offset with passive losses unless the activity generating the loss is completely disposed of in a taxable transaction.
QUESTION NO: 2
For a cash basis taxpayer, gain or loss on a year-end sale of listed stock arises on the:
A. Trade date.
B. Settlement date.
C. Date of receipt of cash proceeds.
D. Date of delivery of stock certificate.
Answer: A
Explanation
Choice "a" is correct. Trade date.
Gain or loss on a year-end sale of listed stock arises on the trade date.
Rule: Whether on the cash or accrual method of accounting taxpayers who sell stock or securities on an
established securities market must recognize gains and losses on the trade date, rather than on the settlement date.
Choices "b", "c", and "d" are incorrect, per the above rule.
QUESTION NO: 3
Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores'
1994 Form 1040.
The Moores received a $500 security deposit on their rental property in 1994. They are required to return the amount to the tenant.
A. $0
B. $500
C. $900
D. $1,000
E. $1,250
F. $1,300
G. $1,500
H. $2,000
I. $2,500
J. $3,000
K. $10,000
L. $25,000
M. $50,000
N. $55,000
O. $75,000
Answer: A
Explanation
"A" is correct. $0. The security deposit is not taxable income because the Moores are required to return it
when the tenant leaves. If the deposit is applied to damages in a later tax year, the portion the
Moores
retain would be income to them in the year they retain the deposit, and the money they spend to repair the
damage would be a deduction to them.
QUESTION NO: 4
Farr made a gift of stock to her child, Pat. At the date of gift, Farr's stock basis was $10,000 and the
stock's fair market value was $15,000. No gift taxes were paid. What is Pat's basis in the stock for computing gain?
A. $0
B. $5,000
C. $10,000
D. $15,000
Answer: C
Explanation
Choice "c" is correct. Property acquired as a gift generally retains the rollover cost basis as it had in the
hands of the donor at the time of the gift. Basis is increased by any gift tax paid that is attributable to the
net appreciation in the value of the gift. Since there were no gift taxes paid, Pat's basis for computing a
gain is the rollover cost (basis), $10,000.
Choices "a", "b", and "d" are incorrect, per the explanation above.
QUESTION NO: 5
Clark bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of
college tuition for Clark's dependent child. One of the conditions that must be met for tax exemption of
accumulated interest on these bonds is that the:
A. Purchaser of the bonds must be the sole owner of the bonds (or joint owner with his or her spouse).
B. Bonds must be bought by a parent (or both parents) and put in the name of the dependent child.
C. Bonds must be bought by the owner of the bonds before the owner reaches the age of 24.
D. Bonds must be transferred to the college for redemption by the college rather than by the owner of the
bonds.
Answer: A
Explanation
Choice "a" is correct. One of the conditions that must be met for tax exemption of accumulated interest on
the bonds is that the purchaser of the bonds must be the sole owner of the bonds (or joint owner with his
or her spouse).
Choice "b" is incorrect. The bonds must be bought and put in the name of the owner or co-owner, not in
the name of the dependent child.
Choice "c" is incorrect. The owner must be at least 24 years old before the bonds issue date.
Choice "d" is incorrect. There is no requirement that the bonds must be transferred to the college for redemption by the college rather than by the owner of the bonds.
Passing the Microsoft MB-280 exam has never been so efficient or easy when getting help from our Microsoft MB-280 training materials. The rapid development of information will not infringe on the learning value of our ISQI CTFL_Syll_4.0 exam questions, because our customers will have the privilege to enjoy the free update for one year. CompTIA PT0-002 - That is because our company beholds customer-oriented tenets that guide our everyday work. EMC D-ECS-DY-23 training materials will definitely live up to your expectations. ISACA COBIT-Design-and-Implementation - Because all of them have realized that it is indispensable to our daily life and work.
Updated: May 26, 2022