Can non Actual Exam 1 Questions w ith 100%
Ver ifi ed Cor r ect Answ er s
1. which is normally indicated when GNP has decreased for two
consecutive quarters?
Answer recession
2. the opportunity to buy unissued common stock at a specified price, over a
long period of time, is provided to the holder of a
Answer warrant
3. which of the following allows shareholders to purchase additional stock be-
fore the company offers shares to the general public?
Answer pre-emptive right
4. alfread, a divorcee, dies with a valid will leaving 'my entire estate to my issue,
per stirpes with the right of representation in each generation.' he is
survived by his father F, two grandchildren A and B by his deceased
daughter, and
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, one grandchild C by his deceased son. which of the following represents the
APPROPRIATE distribution?
Answer C receives more than A or B
5. Dr. Jones purchases a $5,000,000 life insurance policy. on the advice of
her attorney, she transfers all incidents of ownership in the policy to an
irrevocable trust for the benefit of her children the following year. Dr. Jones
dies two years later, and the insurance proceeds are paid to the trust. What are
the estate tax consequences to Dr. Jones' estate?
Answer Insurance proceeds are included in her estate
6. medical expenses for a decedent may be deduced on which of the following
returns
Answer either a 706 or 1040
7. a client dies. after prepartion of the decedent's final 1040 income tax
return, you notice that the client has an unused charitable contribution carry
forward of $10,000. Which of the following best describes the status of this
deduction for future use?
Answer it is lost
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Ver ifi ed Cor r ect Answ er s
1. which is normally indicated when GNP has decreased for two
consecutive quarters?
Answer recession
2. the opportunity to buy unissued common stock at a specified price, over a
long period of time, is provided to the holder of a
Answer warrant
3. which of the following allows shareholders to purchase additional stock be-
fore the company offers shares to the general public?
Answer pre-emptive right
4. alfread, a divorcee, dies with a valid will leaving 'my entire estate to my issue,
per stirpes with the right of representation in each generation.' he is
survived by his father F, two grandchildren A and B by his deceased
daughter, and
1/
8
, one grandchild C by his deceased son. which of the following represents the
APPROPRIATE distribution?
Answer C receives more than A or B
5. Dr. Jones purchases a $5,000,000 life insurance policy. on the advice of
her attorney, she transfers all incidents of ownership in the policy to an
irrevocable trust for the benefit of her children the following year. Dr. Jones
dies two years later, and the insurance proceeds are paid to the trust. What are
the estate tax consequences to Dr. Jones' estate?
Answer Insurance proceeds are included in her estate
6. medical expenses for a decedent may be deduced on which of the following
returns
Answer either a 706 or 1040
7. a client dies. after prepartion of the decedent's final 1040 income tax
return, you notice that the client has an unused charitable contribution carry
forward of $10,000. Which of the following best describes the status of this
deduction for future use?
Answer it is lost
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