Day 25

Question 1

When is interest income tax-exempt for US Series EE Savings Bonds?

Answer 1

1. It is used to pay higher education expenses (reduced by tax-free scholarships)
2. The taxpayer is over the age of 24 when the bond is issued
3. The married taxpayer files a joint return; and
4. The taxpayer meets certain income requirements

MCQ-01564

Question 2

What is an advantage of an S-Corp compared to a C-Corp?

Answer 2

The individuals of an S-Corp can take Capital losses on their personal tax return

MCQ-08609

Question 3

What debts are not discharged from Bankruptcy?

WAFTED

Answer 3

Willful
Alimony
Fraud
Taxes
Educational loans
Debts undisclosed in bankruptcy

MCQ-10997

Question 4

True or False: UCC Sales Article does not depend on the price of the goods involved

Answer 4

True

MCQ-01776

Question 5

How does a Corp recognize a gain in a liquidating distribution?

Answer 5

Recognizes gain as if the property was sold at FMV

MCQ-04894

Question 6

What types of income are considered Self-Employment income?

Answer 6

• Income from Unincorporated Sole Proprietorship
• General Partnership income

MCQ-03494

Question 7

Under Chapter 11 Reorganization Bankruptcy, who confirms the plan?

Answer 7

The court

NOTE: only 2/3 of interest can afrim as well

MCQ-10991

Question 8

What types of income are subject to immediate taxation for a Forien Subsidiary?

Answer 8

Passive Invest Income

MCQ-04559

Question 9

Are premiums paid on disability insurance deductible as medical expenses?

Answer 9

No

MCQ-04757

Question 10

What relationship describes a Corporation and a CPA hired to audit their books?

Answer 10

Employer and Independent Contractor

MCQ-06524

Question 11

When can a taxpayer request an online payment plan?

Answer 11

When they owe $50,000 or less

Question 12

What are the elements of negligence claim:

Answer 12

1. The defendant owed a duty of care to the plaintiff
2. The defendant breached that duty of care
3. The breach of duty was the actual and proximate cause of the plaintiff’s losses
4. The plaintiff suffered damages

MCQ-14921

Question 13

What is the difference between a Surety and a Co-Surety?

Answer 13

Only a Co-Surety has the right of Contribution against other Co-Sureties

MCQ-02261

Question 14

How much of a credit can an Employer take against the Federal Unemployment tax?

Answer 14

The employer can take a credit for the equal amount of State unemployment tax against the Federal Unemployment tax rate

MCQ-02554

Question 15

What is required for an Involuntary petition of Bankruptcy?

Answer 15

3 or more creditors

MCQ-10970