Final Exam > Results Page
final exam score:
95%
Question 1
Correct
A fiscal year may end on any of the following dates except:
March 31
June 30
September 30
(You Answered) (Correct Answer) December 31
Question 2
Correct
Jim Meyers sold land on the installment basis, realizing a gain in 2012 of $50,000. Due to large stock losses, he wants to report the entire gain on his 2012 return. To do so:
He must check a box on Form 1040.
(You Answered) (Correct Answer) He must elect out of installment reporting by including all of the gain on the 2012 return.
He does not have to do anything; installment reporting applies only if so elected.
He must file a request with the IRS to report all the gain in 2012.
Question 3
Correct
For 2012, what is the maximum elective deferral that an individual under age 50 may make as a contribution to a SIMPLE plan?
$2,500
$5,000
(You Answered) (Correct Answer) $11,500
$17,000
Question 4
Correct
The compensation limit taken into account in figuring contributions and benefits under qualified retirement plans for 2012 is:
$225,000
$230,000
$245,000
(You Answered) (Correct Answer) $250,000
Question 5
Incorrect
Leo Thompson, who is single, participates in his company’s 401(k) plan. His adjusted gross income for 2012 is $75,000. He may:
Make deductible contributions to a deductible IRA or to a Roth IRA
Not make contributions to a deductible IRA or to a Roth IRA
Make contributions to both a deductible IRA and a Roth IRA
(Correct Answer) Make contributions to a Roth IRA, but not to a deductible IRA
Question 6
Correct
Which statement regarding required minimum distributions in 2012 is correct?
(You Answered) (Correct Answer) Someone who turned age 70-1/2 in 2012 can postpone the first RMD until April 1, 2013.
A beneficiary who inherited an IRA in 2009 and has been taking annual RMDs does not have to take any in 2012.
The suspension of the RMD rules applies in 2012.
A taxpayer can use whichever IRS table results in the lowest RMD.
Question 7
Incorrect
A taxpayer, age 45, may avoid the 10% early distribution penalty on IRA withdrawals in all of the following situations except:
Disability
(Correct Answer) Financial hardship
Using withdrawals to pay first-time home buying costs (up to $10,000)
Education costs
Question 8
Correct
Myrtle Thomas, age 68, works, while her 69-year-old husband, Bill, is retired (assume that she does not participate in a qualified retirement plan at work). Her annual salary is $80,000. What is the maximum amount she can contribute into IRA accounts?
$5,000 for her own account
$6,000 for her own account
$5,000 for her own account plus $5,000 for Bill’s account
(You Answered) (Correct Answer) $6,000 for her own account plus $6,000 for Bill’s account
Question 9
Correct
A SEP plan for a self-employed individual for 2012 may be set up as late as:
October 1, 2012
December 31, 2012
April 15, 2013
(You Answered) (Correct Answer) October 15, 2013 (assuming the taxpayer obtained a filing extension)
Question 10
Correct
The maximum deductible contribution to a profit-sharing plan by a self-employed person in 2012 is:
$17,000
$49,000
(You Answered) (Correct Answer) $50,000
$200,000
Question 11
Correct
In 2012, the most modified AGI that a single individual can have and still be eligible to convert a traditional IRA to a Roth IRA is:
$58,000
$110,000
$169,000
(You Answered) (Correct Answer) No limit
Question 12
Correct
A beneficiary inherits an IRA from her father as the sole designated beneficiary of that IRA. In figuring required minimum distributions for 2012, which IRS table is used?
(You Answered) (Correct Answer) Single Life Table
Uniform Lifetime Table
Joint and Last Survivor Table
Any of the above
Question 13
Correct
The tax penalty for an insufficient required minimum distribution is:
6%
10%
20%
(You Answered) (Correct Answer) 50%
Question 14
Correct
Which of the following statements concerning rollovers from one IRA to another IRA is not correct?
There is a 60-day rollover period.
(You Answered) (Correct Answer) They are subject to a 20% withholding tax if t transferred via direct rollover into another IRA.
Surviving spouses can roll over inherited accounts into their own IRA.
Only one rollover is allowed within a 12-month period.
Question 15
Correct
A sole proprietor sets up a SIMPLE plan for 2012 and adopts the 3% matching contribution. Assume his net earnings for the year are $30,000. What is the required matching contribution?
$270
$600
(You Answered) (Correct Answer) $900
$2,500
Question 16
Correct
Estimated taxes must include which of the following?
Alternative minimum taxes
Household employment taxes
Self-employment tax
(You Answered) (Correct Answer) All of the above
Question 17
Correct
There is no estimated tax penalty if liability is less than:
(You Answered) (Correct Answer) $1,000
$1,500
$2,500
$5,000
Question 18
Incorrect
Taxpayers can avoid making estimated tax payments by opting to have taxes withheld on:
Capital gains
State income tax refunds
(Correct Answer) Social Security benefits
(You Answered) Interest income
Question 19
Correct
Which statement concerning estimated taxes for spouses is correct?
They must file estimated taxes jointly if they file their return jointly.
They must file separate estimated taxes even if they file their return jointly.
(You Answered) (Correct Answer) They can file estimated taxes without regard to how they file their return.
They must file estimated taxes in the same way in which they file state estimated taxes.
Question 20
Correct
The wage threshold for Social Security and Medicare taxes for a household employee in 2012 is:
(You Answered) (Correct Answer) $1,800 or more in a year
$625 or more in a quarter
$1,000 or more in a year
$50 or more in a quarter