AICPA Release Questions Flashcards
Mutual Mistake of material fact
Type of mistake when entering into a contract generally allows rescission of the contract
Fraud
Activities will lead to civil and criminal penalty imposed by federal income tax
The State board of accountancy is the only regulatory agency with the power to determine
The work experience required for CPA licensure
Which of the following bodies has the authority to determine whether a candidate is qualified to sit for the CPA
The State board of accountancy
Which of the following actions will most likely NOT result in the imposition of the false and fraudulent statement penalty of up to $500,000 and imprisonment under IRC Section 7206
The CPA reports the Taxpayer’s income from drug dealing on client’s tax return, but does not deduct the kickbacks paid to city employees
Under the Treasury Circular 230 each of the following individuals is eligible to obtain a preparer tax identification number with the IRS except
The question is not who can get a tax id number but who is protected by circ230
A revenue agent
I say An Attorney
A tenant leased an apartment from the landlord of an apartment building. In the middle of the lease, the landlord failed to provide heat in the winter and did not repair electricity lighting fixtures. Which of the following is the legal term most representative of the landlord’s failure to provide heat and lighting to the tenant?
Constructive eviction
Constructive eviction = A landlord declines to furnish a habitable rental unit.
A C Corporation purchased a new laptop computer for $3,000 for use in the taxpayer’s business. What is the MARCS recovery period for the computer?
5 years
Suilvile sustained personal injuring from an automobile accident. Suilvile was awarded $200,000 damages for physical personal injury and $2,000,000 in punitive damages. What amount is includible in Suilvile’s gross income?
$2,000,000
punitive damages: are the damages awarded separately from the actual damages from an event.
