Assist in answering the following set of questions: List the answer as A, B, C, or D with the questions number. and True or False with the question number.

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Jamahl has a 65% interest in a partnership. Jamahl sells land to the partnership for $70,000. Prior to the sale, the land had a FMV of $70,000 and an adjusted basis of $90,000 to Jamahl. Due to the sale, Jamahl will recognizeA. $0, and he will not have any carryover loss.B. a gain of $20,000.C. $0, but he will have a carryover loss of $20,000.D. a loss of $20,000.Reset SelectionQuestion 12 of 512 PointsJamahl has a 65% interest in a partnership. Jamahl sells land to the JK partnership for $70,000. Prior to the sale, the land had a FMV of $70,000 and an adjusted basis of $90,000 to Jamahl. Two years later, the partnership sells the land for $123,000. Due to the sale, the partnership will recognizeA. a loss of $20,000.B. a gain of $33,000.C. a gain of $13,000.D. a loss of $53,000.Reset SelectionQuestion 13 of 512 PointsBen is a 30% partner in a partnership. The partnership guarantees Ben payments of $25,000 for the year. If the partnership has ordinary income of $15,000 before adjustment for the guaranteed payment, Ben must reportA. ordinary income of $25,000 and a partnership loss of $3,000.B. ordinary income of $25,000 and a partnership income of $4,500.C. ordinary income of $22,000.D. an ordinary loss of $3,000.Reset SelectionQuestion 14 of 512 PointsAll of the following statements are true regarding nonliquidating distributions of a partnership exceptA. in no circumstances may the partner’s basis in the partnership interest be reduced below zero as a result of a nonliquidating distribution.B. if, after money distributions reduce the partnership basis, the adjusted basis of distributed property does not exceed the partner’s basis in the partnership interest, the basis of the distributed property carries over to the partner.C. in no circumstances will the partner or the partnership recognize gain or loss from a nonliquidating distribution.D. if money is distributed in excess of the partnership interest, the partner receiving the distribution has capital gain.Reset SelectionQuestion 15 of 512 PointsBrittany receives a nonliquidating distribution of $48,000 cash from her partnership. Brittany’s basis in her partnership interest prior to the distribution is $25,000. What are the tax consequences of the distribution?A. $48,000 ordinary income; $25,000 partnership basisB. $25,000 nontaxable return of capital, capital gain of $23,000, $0 partnership basisC. $48,000 nontaxable return of capital, ($23,000) partnership basisD. $25,000 nontaxable return of capital, ordinary income of $23,000, $0 partnership basisReset SelectionQuestion 16 of 512 PointsAtiqa receives a nonliquidating distribution of land from her partnership. The partnership purchased the land five years ago for $20,000. At the time of the distribution, it is worth $28,000. Prior to the distribution, Atiqa’s basis in her partnership interest is $37,000. Due to the distribution, Atiqa and the partnership will recognize income ofA.AtiqaPartnership$0$0B.AtiqaPartnership$8,000$0C.AtiqaPartnership$0$8,000D.AtiqaPartnership$28,000$8,000Reset SelectionQuestion 17 of 512 PointsAtiqa receives a nonliquidating distribution of land from her partnership. The partnership purchased the land five years ago for $20,000. At the time of the distribution, it is worth $28,000. Prior to the distribution, Atiqa’s basis in her partnership interest is $37,000. Atiqa’s basis in the distributed land and her post-distribution basis in her partnership interest areA.LandPartnership Interest$20,000$17,000B.LandPartnership Interest$20,000$9,000C.LandPartnership Interest$28,000$9,000D.LandPartnership Interest$28,000$17,000Reset SelectionQuestion 18 of 512 PointsWhich of the following assets may cause a partner to recognize ordinary income rather than capital gain on the sale of a partnership interest?A. inventoryB. landC. marketable securitiesD. buildings which have been placed in service after 1986Reset SelectionQuestion 19 of 512 PointsLars has a basis in his partnership interest in XXL of $100,000. He sells the partnership interest in XXL for $160,000. XXL is a cash-basis partnership which has accounts receivable with a $30,000 fair market value and a zero adjusted basis. Lars’s share of these receivables is $10,000. What is the amount and character of the gain that Lars recognizes on the sale of his partnership interest?A. $50,000 capital gainB. $10,000 ordinary income and $60,000 capital gainC. $10,000 ordinary income and $50,000 capital gainD. $60,000 capital gainReset SelectionQuestion 20 of 512 PointsAll of the following are requirements to qualify as an S corporation with the exception ofA. the corporation must be a domestic corporation.B. the corporation may issue only one class of stock (disregarding voting rights).C. the corporation may not have more than 100 shareholders.D. the corporation shareholders may consist of only individuals, estates, trusts, and partnerships.Reset SelectionQuestion 21 of 512 PointsA new corporation is formed on January 2, 2018. In order to have the S election effective as of the first day of the first tax year, the Form 2553 must be filed no later thanA. January 2, 2018.B. the original due date for the 2018 tax return.C. the properly extended due date for the 2018 tax return.D. March 15, 2018.Reset SelectionQuestion 22 of 512 PointsWhich of the following statements regarding voluntary revocation of the S election is incorrect?A. The corporation cannot reelect S corporation status for five years.B. In order for the revocation to be effective retroactively to the first day of the tax year, the revocation must be filed by March 15 of the affected year.C. The revocation can provide a specified effective date to occur mid-year, requiring two tax returns to be filed for the year.D. All of the shareholders must consent to the revocation.Reset SelectionQuestion 23 of 512 PointsAll of the following would reduce the basis of a shareholder’s stock in an S corporation, exceptA. a shareholder’s share of all loss and deduction items of the S corporation that are separately stated and passed through to the shareholder.B. a shareholder’s pro rata share of loan repayments made by the S corporation.C. a shareholder’s pro rata share of nontaxable distributions by the S corporation to its shareholders.D. a shareholder’s pro rata share of any nondeductible expenses of the S corporation.Reset SelectionQuestion 24 of 512 PointsBryan Corporation, an S corporation since its organization, is owned entirely by Mr. Bryan. The corporation uses a calendar year as its taxable year. Mr. Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year. For this year, Bryan Corporation reported the following results:
Ordinary Income$65,000Dividend Income20,000Short-term capital loss( 2,000)Distributions of $40,000 were made during the year. What is the basis of Mr. Bryan’s stock on December 31?A. $203,000B. $165,000C. $163,000D. $205,000Reset SelectionQuestion 25 of 512 PointsRaina owns 100% of Tribo Inc., an S corporation. She started the business this year with a $100,000 capital contribution. In addition, the business borrowed $50,000 from the bank which she had to guarantee. Tribo incurred a first year operating loss of $170,000. Raina will deduct an ordinary loss this year ofA. $100,000.B. $150,000.C. $170,000.D. $0.Reset SelectionQuestion 26 of 512 PointsTony is the 100% shareholder of a corporation established five years ago. It has always been an S corporation. After adjustment for this year’s corporate income, but before taking distributions into account, Tony has a $50,000 stock basis. The corporation pays Tony a $40,000 cash distribution. As a result of this distribution, Tony will have an ending stock basis and recognized income ofA.Income recognizedStock basis$40,000$10,000B.Income recognizedStock basis$0$10,000C.Income recognizedStock basis$0$40,000D.Income recognizedStock basis$40,000$50,000Reset SelectionQuestion 27 of 512 PointsAn S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its shareholder. The tax results of the distribution will beA. $30,000 of gain recognized by the S corporation which is passed through to the shareholder.B. no gain recognized by the corporation but $30,000 of gain recognized by the shareholder.C. no gain to the corporation or to the shareholder.D. $30,000 of gain recognized by the S corporation and no pass-through to the shareholder.Reset SelectionQuestion 28 of 512 PointsAn S corporation distributes land to its shareholders. The land has a $60,000 basis and a $90,000 FMV. The basis of the land to the shareholder isA. $90,000.B. $0.C. $30,000.D. $60,000.Reset SelectionQuestion 29 of 512 PointsIn the current year, Cesar, who is single, gives $26,000 to each of his 20 nieces and nephews for a total property transfer of $520,000. Cesar’s taxable gifts totalA. $520,000.B. $220,000.C. $300,000.D. $260,000.Reset SelectionQuestion 30 of 512 PointsIdentify which of the following statements is true.A. If the annual exclusion for gifts is not used in the current year, the unused portion can be carried forward to subsequent years.B. For transfer tax purposes, both the charitable contribution deduction and the marital deduction are unlimited.C. Individuals may not give more than $15,000 per person in gifts each year before being taxed on the transfer.D. All of the above are false.Reset SelectionQuestion 31 of 512 PointsVincent makes the following property transfers in the current year:• $5,000 tuition for a grandson paid directly to the school• $1,000 medical expense for a child paid directly to a hospital• $500 donation to the Democratic party• $10,000 property settlement in conjunction with a divorce• $3,000 room and board at college for a grandson paid directly to the schoolVincent’s gifts for the year before considering the annual gift tax exclusion totalA. $19,000.B. $19,500.C. $0.D. $3,000.Reset SelectionQuestion 32 of 512 PointsWhich of the following transactions constitutes a completed gift made by Ellen, a widow, in the current year?A. Ellen names Larry the beneficiary of a $100,000 life insurance policy on Ellen’s life. The beneficiary designation is revocable.B. Ellen deposits $100,000 cash and Matt deposits $5,000 cash into a joint savings account. Matt does not withdraw anything during the current year.C. Ellen transfers property to a revocable trust, naming the bank as trustee. The trustee must pay out all the income to Ed over Ed’s lifetime, beginning next year.D. Ellen reimburses her granddaughter $15,000 for her tuition at medical school.Reset SelectionQuestion 33 of 512 PointsWhich of the following is a completed gift?A. Greta transfers $50,000 to a revocable trust benefiting her children Hans and Julio.B. Juan purchases a ski chalet using his own funds, but listing Penelope as a joint owner.C. Mike changes the beneficiary of his policy to Meredith.D. Horatio transfers $60,000 to a bank account with Hazel. Hazel does not contribute any money to the account.Reset SelectionQuestion 34 of 512 PointsSteve gave stock with an adjusted basis of $7,000 and an FMV of $10,000 to Alice. No gift tax was paid. Later, Alice sold the stock for $12,000. The gain Alice will recognize on the sale isA. $2,000.B. $0.C. $5,000.D. none of the aboveReset SelectionQuestion 35 of 512 PointsTracy gave stock with an adjusted basis of $18,000 and an FMV of $15,000 to her nephew Phil. No gift tax was paid. Phil sold the stock for $16,000. The gain or loss Phil will recognize on the sale isA. $1,500 loss.B. $1,000 gain.C. $0.D. none of the aboveReset SelectionQuestion 36 of 512 PointsMiguel gives Roberta land with an adjusted basis of $50,000 and an FMV of $40,000. No gift tax is paid. Roberta sells the land for $36,000. Roberta recognizesA. a $4,000 loss.B. no loss.C. a $14,000 loss.D. none of the aboveReset SelectionQuestion 37 of 512 PointsThe alternate valuation date is generallyA. 6 months after the date of death.B. 9 months after the date of death.C. 12 months after the date of death.D. 3 months after the date of death.Reset SelectionQuestion 38 of 512 PointsIdentify which of the following statements is true.A. All trusts and estates must use a calendar year-end.B. Trusts are required to make estimated tax payments.C. All estates with gross income of at least $500 must file an income tax return.D. All of the above are false.Reset SelectionQuestion 39 of 512 PointsCharitable contributions made by a fiduciaryA. must be authorized in the trust instrument in order to be deductible.B. are limited to 50% of fiduciary income.C. are subject to the 2% floor.D. flows through to be deducted on the beneficiary’s tax return.Reset SelectionQuestion 40 of 512 PointsAn estate is allowed an income tax exemption of:A. $600.B. $100.C. $0.D. $300.Reset SelectionQuestion 41 of 512 PointsA simple trustA. may accumulate income.B. may make discretionary distributions of principal.C. is required to distribute all of its income currently.D. may make charitable distributions.Reset SelectionQuestion 42 of 512 PointsWhich one of the following special loss limitations applies to an S corporation?A. passive activity limitation rulesB. hobby loss rulesC. at-risk rulesD. All of the above apply.Reset SelectionQuestion 43 of 512 PointsMashburn Corporation is an S corporation that uses a fiscal year ending June 30 as its tax year. When is Mashburn Corporation’s income tax return due?A. September 15B. July 15C. October 15D. March 15 of the next yearReset SelectionQuestion 44 of 512 PointsThe estate of a decedent paid all of the following expenses during the year.Which one of these expenses are NOT allowable on the estate’s Form 1041, U.S. Fiduciary Income Tax return?A. Administrative expensesB. Losses from sale of propertyC. Medical expenses of the decedentD. Alimony owed by the decedent and paid out of estate incomeReset SelectionQuestion 45 of 512 PointsWhich of the following may be deducted in computing the taxable income of an estate on Form 1041?A. Funeral expenses of decedentB. Dental expenses of decedent paid by the estateC. Decedent’s prior year net operating loss carryoverD. Estate net income distributed to beneficiariesReset SelectionQuestion 46 of 512 PointsSteven Stiff dies in March 2019. Mrs. Stiff remarried in June 2019 and subsequently filed a joint return with her new husband for 2019. What is the filing status for Steven Stiff for 2019?A. SingleB. Head of HouseholdC. Married, filing separate returnsD. Married, filing joint returnReset SelectionQuestion 47 of 512 PointsWith regard to estimated income taxes, estates:A. Must make quarterly estimated tax payments no later than the second quarter following the one in which the estate is createdB. Are exempt from paying estimated taxes during the estate’s first two taxable yearsC. Must make quarterly estimated taxes only if the estate’s income is required to be distributed currentlyD. Are not required to make estimated tax paymentsReset SelectionQuestion 48 of 512 PointsHoward deposited $10,000 into a joint savings bank account that he opened. He named his brother, Henry, as a joint tenant. Henry subsequently withdrew $4,000 from the account. Howard made a gross gift to Henry of:A. $0B. $1,000C. $4,000D. $5,000Reset SelectionQuestion 49 of 512 PointsWhich of the following received after the death of a decedent is NOT “income in respect of a decedent”A. Wages earned by a decedent but not received prior to deathB. Interest on U.S. savings bonds that has accrued but has not been reported a s income by a cash basis taxpayerC. Collection of a cash method taxpayer’s account receivable that existed at date of deathD. Rent for the month after the decedent’s death pursuant to a lease entered into prior to deathReset SelectionQuestion 50 of 511 PointsA simple trust cannot deduct distributions to beneficiaries made after the close of the taxable year.TrueFalseReset SelectionQuestion 51 of 511 PointsA decedent’s unused capital loss carry-forward can be deducted by the decedent’s estate.TrueFalseReset Selection

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