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| Section | Weight | Objectives |
|---|---|---|
| Federal Taxation of Property Transactions | 12-22% | - Like-kind exchanges and involuntary conversions - Capital vs ordinary asset classification - Cost recovery, depreciation, and amortization - Recognition of gains and losses - Basis and holding periods of assets |
| Federal Taxation of Individuals | 15-25% | - Pass-through entity income reporting - Adjustments, deductions, and credits - Gross income inclusions and exclusions - Filing status and exemptions - Loss limitations and tax computation |
| Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20% | - Treasury Department Circular 230 rules - Licensing and disciplinary systems - Ethics and responsibilities in tax practice - Tax preparer penalties and due diligence - IRS audit, appeals, and collection procedures |
| Federal Taxation of Entities | 28-38% | - S Corporations - Partnerships and LLCs - Book-tax differences and distributions - Tax-exempt organizations - C Corporations |
| Business Law | 10-20% | - Debtor-creditor relationships and bankruptcy - Contracts and UCC Article 2 - Secured transactions (UCC Article 9) - Business structure legal framework - Agency relationships |
In which of the following situations may taxpayers file as married filing jointly?
Correct Answer: B 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
Starr, a self-employed individual, purchased a piece of equipment for use in Starr's business. The costs
associated with the acquisition of the equipment were:
What is the depreciable basis of the equipment?
Correct Answer: A 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
Doris and Lydia are equal partners in the capital and profits of Agee & Nolan, but are otherwise unrelated.
The following information pertains to 300 shares of Mast Corp. stock sold by Lydia to Agee & Nolan:
The amount of long-term capital loss that Lydia realized in 1988 on the sale of this stock was:
Correct Answer: D 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
A cash basis taxpayer should report gross income:
Correct Answer: B 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
Which one of the following statements is correct with regard to an individual taxpayer who has elected to
amortize the premium on a bond that yields taxable interest?
Correct Answer: B 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
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