AICPA REG valid study dumps : CPA Regulation

An individual had the following capital gains and losses for the year:

What will be the net gain (loss) reported by the individual and at what applicable tax rate(s)?

• A. Short-term loss of $3,000 at the ordinary rate, long-term capital gain of $10,000 at the 15% rate,
  collectibles gain of $10,000 at the 28% rate, and Section 1250 gain of $56,000 at the 25% rate.
• B. Long-term capital gain of $3,000 at the 15% rate, collectibles gain of $10,000 at the 28% rate, and
  Section 1250 gain of $56,000 at the 25% rate.
• C. Short-term loss of $3,000 at the ordinary rate and long-term capital gain of $86,000 at the 15% rate.
• D. Long-term gain of $16,000 at the 15% rate.

Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own
and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994
Form 1040.
The Moores received a $500 security deposit on their rental property in 1994. They are required to return
the amount to the tenant.

• A. $1,250
• B. $1,500
• C. $1,000
• D. $3,000
• E. $75,000
• F. $0
• G. $500
• H. $2,000
• I. $10,000
• J. $1,300
• K. $50,000
• L. $25,000
• M. $55,000
• N. $2,500
• O. $900

Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts
receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the
year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year?

• A. $75,000
• B. $90,000
• C. $100,000
• D. $110,000

Elm Corp. is an accrual-basis calendar-year C corporation with 100,000 shares of voting common stock
issued and outstanding as of December 28, 1996. On Friday, December 29, 1996, Hall surrendered 2,000
shares of Elm stock to Elm in exchange for $33,000 cash. Hall had no direct or indirect interest in Elm
after the stock surrender. Additional information follows:

What amount of income did Hall recognize from the stock surrender?

• A. $17,000 capital gain.
• B. $33,000 dividend.
• C. $25,000 dividend.
• D. $18,000 capital gain.

Freeman, a single individual, reported the following income in the current year:
Guaranteed payment from services rendered to a partnership $50,000
Ordinary income from a S corporation $20,000
What amount of Freeman's income is subject to self-employment tax?

• A. $0
• B. $70,000
• C. $50,000
• D. $20,000