Question

1. Print or internet tax services published by RIA and CCH can be organized

A. according to the Code Sections in the Internal Revenue Code, in order
B. according to cases and rulings as they are decided and then linked to the relevant code section.
C. along logical topic lines, including all relevant code sections within the topic
D. Both A and C
E. Both A and B.

2. A good source for the practitioner to gain an understanding of unfamiliar areas of the tax law is through

A. a tax treatise.
B. a Revenue Ruling
C. the Client
D. None of the above

3. Pursuant to the all-inclusive concept of income

A. the taxpayer has income when received in the form of property or services, but not cash
B. the taxpayer has income when cash is received
C. the taxpayer does not have income unless the Code says the receipt is income
D. a receipt that increases the taxpayer's net worth is included in gross income unless specifically excluded by the Code

4. The following is an example of a recurring expense which is deductible by a calendar-year taxpayer in full in the year of payment

A. Taxpayer purchases six months of business insurance on September 15, 2016, for a cost of $800
B. Taxpayer pays $10,000 for two years of rent for the office building in advance
C. Taxpayer pays a consultant $15,000 to perform a marketing study that will not be completed for 18 months
D. Taxpayer pays his attorney a retainer fee of $10,000 for ongoing litigation costs in a product liability lawsuit

5. Pursuant to Code Sec. 1202, gain on the sale of qualified small business stock purchased before 2009 is

A. a category of ordinary income taxed fully at the taxpayer's marginal tax rate
B. a category of capital gain taxed fully at a rate of 28 percent.
C. a category of capital gain, 50 percent of which is taxed at a rate of 14 percent
D. a category of capital gain, 50 percent of which is taxed at a rate of 28 percent

6. Pursuant to Code Sec. 512, which tax-exempt organization would have unrelated business taxable income (UBIT)

A. The sale at a profit of standard legal forms to its members by a local bar association
B. The sale of a public radio station's membership list to marketing company
C. The provision of pet boarding and grooming services for the general public by an organization operated for the prevention of cruelty to animal
D. All of the above

Answer 1

Question No.1-. Correct Answer is D.   As print or Internet tax services published by Ria and CCH can be organized according to the code sections in the Internal Revenue Cose , in order and along logical topic lines including all relevant code sections within topics.

QuestioNo..2-. Correct Answer is D. A good source for the practitioner to gain an understanding of unfamiliar areas of the tax law is through research about the unfamiliar areas as mentioned in option A tax treaties work responsbilty doesn't include to train or give consultation to practicioner . As client als can't help a practitioner in this because of non expertise and also he pay for get the work done instead of doing the same. Also it is not right from the business or professional point of view.

Question No. 3.-. Correct Answer is. D.    All inclusive concept of income is a receipt or income that increases the taxpayers's net worth is included in gross income whether it's cash or kind unless specifically exluded by the code. As in 1 option only cash income is deemed to as gross income and in option 2 only property or service income take as gross income and in 3 option Gross income is the income that stated in code. Hence all the above three options are not completely defined the income as stated in option fourth.

Question No. 4-- Correct Answer is. D. Example of recurring expenses which is deductible by a calendar year taxpayer in full in the year of payment is payment to hs attorney a retaineer fee of $10000 for ongoing litigation costs in a product liability lawsuit. Because rest three payments are made for future gains that will be of capital expenses nature not deductible in full by a calendar year.

Question No. 4-. Correct Answer is. D   Codee. 1202 gin on the sale of qualified small business stock purchase before 2009 is a category of capital gain 50% of which is taxed at the rate of 28%.

Question No. 6-. Correct Answer is. D. Code Sec.512 unrelated business taxable income is the income not earned by the business activity or earned by some other activities like men in options A, B and C.