A taxpayer filed his income tax return after the due date but neglected to file an extension form.
The return indicated a tax liability of $50,000 and taxes withheld of $45,000. On what amount
would the penalties for late filing and late payment be comput
Under Chapter 7 of the federal Bankruptcy Code, what effect does a bankruptcy discharge have
on a judgment creditor when there is no bankruptcy estate?
a. The debtor is required to pay a liquidated amount to vacate the judgment.
The debtor is relieved o
Under the Sales Article of the UCC, which of the following statements is correct regarding risk
of loss and title to the goods under a sale or return contract?
a. Title and risk of loss are shared equally between the buyer and the seller.
Title and risk
A taxpayer is trading in an automobile used solely for business purposes for another automobile
to be used in his business. The automobile originally cost $35,000 and he has taken $18,000 in
depreciation. The old automobile is currently worth $20,000 and
Smith made a gift of property to Thompson. Smith's basis in the property was $1,200. The fair
market value at the time of the gift was $1,400. Thompson sold the property for $2,500. What
was the amount of Thompson's gain on the disposition?
Vee Corp. retained Walter, CPA, to prepare its Year 6 income tax return. During the engagement,
Walter discovered that Vee had failed to file its Year 2 income tax return. What is Walter's
professional responsibility regarding Vee's unfiled Year 2 income
Tork purchased restricted securities that were issued pursuant to Regulation D of the Securities
Act of 1933. Which of the following statements is correct regarding Tork's ability to resell the
Walker transferred property used in a sole proprietorship to the WXYZ partnership in exchange
for a one-fourth interest. The property had an original cost of $75,000, an adjusted tax basis to
Walker of $20,000, and fair market value of $50,000. The partne
Dean is a 25% partner in Target Partnership. Dean's tax basis in Target on January 1, 20X1, was
$20,000. At the end of 20X1, Dean received a nonliquidating cash distribution of $8,000 from
Target. Target's 20X1 accounts recorded the following items:
Which of the following statements is true with regard to the Statute of Frauds?
a. The contract terms may be stated in more than one document.
b The Statute of Frauds applies to contracts that can be fully performed within one year
. from the date they ar
For an opinion to be a covered opinion:
The opinion can be based on reasonable or unreasonable factual assumptions, depending
on the circumstances.
The opinion must set forth the likelihood that the taxpayer will prevail on the merits for
Under the UCC Secured Transactions Article, if a debtor is in default under a payment obligation
secured by goods, the secured party has the right to:
judicial claim t
Which of the following events will release a noncompensated surety from liability to the
a. The principal debtor was involuntarily petitioned into bankruptcy.
The creditor was adjudicated incompetent after the debt arose.
The creditor fai
Aviary Corp. sold a building for $600,000. Aviary received a down payment of $120,000 as well
as annual principal payments of $120,000 for each of the subsequent four years. Aviary
purchased the building for $500,000 and claimed depreciation of $80,000. W
Which of the following is not eligible for copyright protection?
a. The choreography in a movie.
c. A source code of a computer program.
Choice "b" is correct. Generally speaking, copyright law protects works in
The filing of an involuntary bankruptcy petition under the Federal Bankruptcy Code:
a. Stops the enforcement of judgment liens against property in the bankruptcy estate.
Terminates liens on exempt property.
c. Terminates all security interests in prop
Pix Corp. is making a $6,000,000 stock offering. Pix wants the offering exempt from registration
under the Securities Act of 1933.
Which of the following provisions of the Act would Pix have to comply with for the offering to
a. Regulation A.
Thompson's basis in Starlight Partnership was $60,000 at the beginning of the year. Thompson
materially participates in the partnership's business. Thompson received $20,000 in cash
distributions during the year. Thompson's share of Starlight's current op