4. Which one of the following do NOT provide rules and regulations regarding inc

ID: 2592262 • Letter: 4

Question

4. Which one of the following do NOT provide rules and regulations regarding income tax advisor/preparer professional rules and regulations

a. AICPA

b. U.S. Treasury Department

c. Internal Revenue Code

d. Financial Accounting Standards Board

5. After tax return is:

a. Pretax return x tax rate

b. Pretax return x (1-tax rate)

c. Base x tax rate

d. Pretax return – (after tax return x tax rate)

e. None of the above

6. Adjusted basis is typically calculated as:

a. Original Cost – Amount Realized

b. Amount Realized – Selling Expenses

c. Original Cost – Accumulated Depreciation

d. Fair Market Value – Impairment Losses

e. Purchase Price – Installation Costs + Appreciation in Value

7. When a corporation is organized with a single shareholder that contributed appreciated property, which of the following is most likely to occur:

a. The corporation will realize and recognize a gain but the shareholder will not

b. Neither the corporation of the shareholder will recognize gain

c. The shareholder will recognize a gain but not a loss and the corporation will recognize gains and losses

d. The corporation and the shareholder will both realize and recognize any gains but not any losses.

e. The shareholder will only recognize a gain if cash is contributed

Answers are:

4) d. Financial Accounting Standards Board

5) b. Pretax return x (1-tax rate)

6) c. Original Cost – Accumulated Depreciation

7) e. The shareholder will only recognize a gain if cash is contributed

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