Final Exam > Results Page
final exam score:
final exam status:
85%PASSED
Final Exam > Question 1 Which of the following items is not excludable from gross income?Which of the following items is not excludable from gross income?
$100,000 life insurance proceeds from a deceased spouse
An inheritance of $1 million from a parent
A gift of $14,000 from an uncle
XXXAn award of $1,000 from an employer for doing an outstanding job on a special project
Final Exam > Question 2 Donna Edwards inherited stock in X Corporation from her grandfather at the start of 2014, then worth $100,000. In 2015, she collected $2,000 of dividends. In 2015, Donna is taxed on:Donna Edwards inherited stock in X Corporation from her grandfather at the start of 2014, then worth $100,000. In 2015, she collected $2,000 of dividends. In 2015, Donna is taxed on:
XXX$2,000 dividends
$100,000 stock
Nothing, because the stock was an inheritance
Both $100,000 stock (in 2014) and $2,000 dividends (in 2015)
Final Exam > Question 3 Steve Strange failed to report interest in 2014 and is now required to have backup withholding on interest and dividends. In 2015, he received dividends of $5,000. How much backup withholding will there be on these dividends?Steve Strange failed to report interest in 2014 and is now required to have backup withholding on interest and dividends. In 2015, he received dividends of $5,000. How much backup withholding will there be on these dividends?
$500
$1,000
$1,250
XXX$1,400
Final Exam > Question 4 Regarding “qualified” dividends, which statement is not correct?Regarding “qualified” dividends, which statement is not correct?
The top tax rate on qualified dividends is 20%.
Qualified dividends are taxed as long-term capital gains.
XXXSuch dividends are taxed as short-term capital gains.
Qualified dividends do not include dividends from money market funds.
Final Exam > Question 5 In 2015, Marlene Maxwell, age 48, receives $100,000 of group-term life insurance from her employer at no cost to her. The employer pays a premium of $180 for her life insurance. She is taxed on:In 2015, Marlene Maxwell, age 48, receives $100,000 of group-term life insurance from her employer at no cost to her. The employer pays a premium of $180 for her life insurance. She is taxed on:
XXX$0
$90
$135
$180
Final Exam > Question 6 Sam Sharp takes a $50,000 distribution from his qualified retirement plan. It is not a required minimum distribution. Which of the following is not true?Sam Sharp takes a $50,000 distribution from his qualified retirement plan. It is not a required minimum distribution. Which of the following is not true?
He can roll over the entire $50,000 directly and not have any income tax withheld.
If he does not roll over any of the $50,000, he will have $10,000 of income tax withheld.
He does not have to have withholding if the $50,000 is one of a series of substantially equal payments made over his life expectancy.
XXXIf he has income tax withheld and then decides to roll over the full amount, the IRS will contribute the amount previously withheld into the rollover account.
Final Exam > Question 7 With respect to loans from qualified retirement plans, which statement is not correct?With respect to loans from qualified retirement plans, which statement is not correct?
Loans must be repaid using a level amortization schedule over no more than five years (unless the loan is to purchase a principal residence).
The maximum loan amount is the lesser of $50,000 or 50% of the participant’s vested account balance.
XXXLoans cannot be made to partners, limited liability company members, more-than-2% S corporation shareholders, and self-employed individuals.
Spousal consent is required if the participant is married.
Final Exam > Question 8 Which type of health insurance plan has a use-it-or-lose-it feature in the absence of adopting a limited carryover?Which type of health insurance plan has a use-it-or-lose-it feature in the absence of adopting a limited carryover?
Archer medical savings accounts
Health reimbursement accounts
Health savings accounts
XXXFlexible spending accounts
Final Exam > Question 9 When funds from a health savings account (HSA) are distributed for qualified medical expenses, these funds are:When funds from a health savings account (HSA) are distributed for qualified medical expenses, these funds are:
Generally included in the income of the taxpayer
Always included in the income of the taxpayer
XXXGenerally excluded from the income of the taxpayer
Allocated between contributions made by the employer and the employee, and only the amount attributed to the employee’s contributions are included in income of the taxpayer
Final Exam > Question 10 Mike and Judy Smith are married and covered under Mike’s employer adoption assistance program. They adopted a child in 2015, and the employer reimbursed them $15,000 in qualified expenses. Their modified AGI is $190,000. Their maximum exclusion for 2015 is:Mike and Judy Smith are married and covered under Mike’s employer adoption assistance program. They adopted a child in 2015, and the employer reimbursed them $15,000 in qualified expenses. Their modified AGI is $190,000. Their maximum exclusion for 2015 is:
XXX$0
$5,000
$13,400
$15,000
Final Exam > Question 11 Harry Henson, a computer programmer, takes a job-related graduate course for $6,000, which his employer pays for and which qualifies as a working-condition fringe benefit. He may:Harry Henson, a computer programmer, takes a job-related graduate course for $6,000, which his employer pays for and which qualifies as a working-condition fringe benefit. He may:
Exclude $5,250
XXXExclude all of this benefit
Exclude nothing; he is fully taxable on this benefit
Exclude a portion of $6,000 depending on his income.
Final Exam > Question 12 The annual dollar limit on the exclusion for the clergy’s rental allowance is:The annual dollar limit on the exclusion for the clergy’s rental allowance is:
$0
$10,000
$20,000
Unlimited
CThe annual dollar limit on the exclusion for the clergy’s rental allowance is:The annual dollar limit on the exclusion for the clergy’s rental allowance is:
$0
$10,000
$20,000
XXXUnlimited
Final Exam > Question 14 Which of the following items might be considered as deductible alimony?Which of the following items might be considered as deductible alimony?
Child support payments
Rent paid for the benefit of the recipient-spouse
XXXNoncash payments
A property settlement
Final Exam > Question 15 A payment by a taxpayer to a former spouse pursuant to an agreement executed in 2015 may qualify as alimony even though:A payment by a taxpayer to a former spouse pursuant to an agreement executed in 2015 may qualify as alimony even though:
XXXThe payment is to a third party.
The payment is designated as child support.
The liability to make the payment would survive the recipient spouse’s death.
The payment is made to maintain the taxpayer’s property.
Final Exam > Question 16 All of the following are requirements for a payment to be considered alimony except:All of the following are requirements for a payment to be considered alimony except:
XXXPayments can be in property.
Payments are in cash.
Payments are required by a divorce or separation instrument.
Payments are not required after death of the recipient spouse.
Final Exam > Question 17 Amy Adams is a single parent with modified AGI of $102,500. In 2015, the maximum contribution she can make to her child’s Coverdell education savings account is:Amy Adams is a single parent with modified AGI of $102,500. In 2015, the maximum contribution she can make to her child’s Coverdell education savings account is:
$0
$250
$500
XXX$1,000
Final Exam > Question 18 In 2015, qualified education expenses paid from a Coverdell education savings account include:In 2015, qualified education expenses paid from a Coverdell education savings account include:
Tuition and related fees for grades K through higher education
Room and board for higher education
Computer technology and equipment
XXXAll of the above
Final Exam > Question 19 All of the following statements about qualified tuition plans (529s) are correct except:All of the following statements about qualified tuition plans (529s) are correct except:
Private institutions may set up prepaid plans.
Distributions from state tuition plans for qualified expenses are tax-free.
XXXContributions can be made only by taxpayers with income below set limits.
Contributions can be made to both qualified tuition plans and Coverdell ESAs
Final Exam > Question 20 What is the tax advantage to an ABLE account?What is the tax advantage to an ABLE account?
Earnings are not taxed while funds remain in the plan.
Withdrawals are tax free if used to pay qualified expenses.
The beneficiary does not lose eligibility for government assistance programs.
XXXAll of the above