Printable PDF
Download DemoVendor: Test Prep
Certifications: Test Prep Certifications
Exam Code: CPA-REGULATION
Exam Name: CPA Regulation
Updated: Apr 15, 2024
Q&As: 69
Note: Product instant download. Please sign in and click My account to download your product.
The CPA-REGULATION Questions & Answers covers all the knowledge points of the real exam. We update our product frequently so our customer can always have the latest version of the brain dumps. We provide our customers with the excellent 7x24 hours customer service. We have the most professional expert team to back up our grate quality products. If you still cannot make your decision on purchasing our product, please try our free demo.
Experience
Pass4itsure.com exam material in PDF version.
Simply submit your e-mail address below to get
started with our PDF real exam demo of your
Test Prep CPA-REGULATION exam.
Instant download
Latest update demo according to real exam
VCE
Greller owns 100 shares of Arden Corp., a publicly-traded company, which Greller purchased on January 1, 2001, for $10,000. On January 1, 2003, Arden declared a 2-for-1 stock split when the fair market value (FMV) of the stock was $120 per share. Immediately following the split, the FMV of Arden stock was $62 per share. On February 1, 2003, Greller had his broker specifically sell the 100 shares of Arden stock received in the split when the FMV of the stock was $65 per share. What is the basis of the 100 shares of Arden sold?
A. $5,000
B. $6,000
C. $6,200
D. $6,500
Correct Answer: A
Choice "a" is correct. The receipt of a nontaxable stock dividend will require the shareholder to spread the
basis of his original share over both the original shares and the new shares received resulting in the same
total basis, but a lower basis per share of stock held. Therefore, Greller total basis remains the same,
$10,000, but is now split between 200 shares (a 2-for-1 split and he originally owned 100 shares).
Therefore, his basis per share goes from $100/share ($10,000/100) to $50/share ($10,000/200).
Consequently, his basis in 100 share is 100 x $50 = $5,000.
Choices "b", "c", and "d" are incorrect per the above explanation.
Gibson purchased stock with a fair market value of $14,000 from Gibson's adult child for $12,000. The child's cost basis in the stock at the date of sale was $16,000. Gibson sold the same stock to an unrelated party for $18,000. What is Gibson's recognized gain from the sale?
A. $0
B. $2,000
C. $4,000
D. $6,000
Correct Answer: B
Choice "b" is correct. Losses are disallowed on most related party sales transactions even if they were made at an arm's length (FMV) price. The basis (and related gain or loss) of the (second) buying relative depends on whether the second relative's resale price is higher, lower, or between the first relative's basis and the lower selling price to the second relative. In this case, the $4,000 capital loss on the sale by Gibson's adult child to Gibson [$12,000 SP - $16,000 Basis] is disallowed. Gibson's basis is determined by his selling price to a third party. In this case, the selling price is $18,000, which is HIGHER than the original basis of Gibson's adult child. Gibson's basis in the stock is, therefore, his adult child's basis of $16,000.
Gibson's recognized basis is calculated as follows:
Choice "a" is incorrect. There would be a zero gain or loss if the selling price were between the adult child's basis and Gibson's purchase price, but this is not the case in the facts. Choice "c" is incorrect. This answer option uses the fair market value of the stock at the date of purchase as the basis. As is discussed above, the rules do not provide for this treatment. [$18,000 SP - $14,000 FMV = $4,000] Choice "d" is incorrect. This would be the answer if the basis were Gibson's purchase price of $12,000; however, because the stock sold for more than Gibson's child's basis and the child had a disallowed loss on the sale to Gibson, Gibson is allowed to use his child's original basis of $16,000 as his basis for the stock on the date of the second sale. [$18,000 SP - $12,000 PP = $6,000]
Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own and was Tom's dependent. Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994 Form 1040. In 1992, Joan received an acre of land as an inter-vivos gift from her grandfather. At the time of the gift, the land had a fair market value of $50,000. The grandfather's adjusted basis was $60,000. Joan sold the land in 1994 to an unrelated third party for $56,000.
A. $0
B. $500
C. $900
D. $1,000
E. $1,250
F. $1,300
G. $1,500
H. $2,000
I. $2,500
J. $3,000
K. $10,000
L. $25,000
M. $50,000
N. $55,000
O. $75,000
Correct Answer: A
"A" is correct. $0. Property received by gift has two bases: one for computing gain and another for computing loss. Joan's basis for gain is the grandfather's adjusted basis ($60,000). Using this basis for gain, Joan has a loss of: $56,000 - $60,000 = ($4,000 loss). Joan's basis for loss is the fair market value of the property on the date of the gift ($50,000). Using this basis for loss, Joan has a gain of: $56,000 $50,000 = $6,000 gain. In this unusual situation, Joan has neither a gain nor a loss, although the transaction must be reported.
Younan
SwitzerlandPassed this exam with a score of 941.Most of them are in this dumps.
Galen
Luxembourghi guys, i passed this exam today. all the questions with correct answers in this dumps. recommend.
August
PakistanThis dumps is valid, and this dumps is the only study material i used for this exam. Surprisingly i met the same question in the exam, so i passed the exam without doubt. Thanks for this dumps and i will recommend it to my friends.
Pasi
Australiatook the exams yesterday and passed. I was very scared at first because the labs came in first so I was spending like 10 to 13mins so I started rushing after the first three labs thinking that I will have more labs. I ended up finishing the exam in an hour.. dumps are valid.
Quinley
PakistanThis Dump is Valid.I gave my test today, and passed,thanks!
Nebeker
South AfricaThis dumps is very valid and is enough to your exam, so just trust on it and do it carefully.
Lisy
Thailandtoday i'm pass the exam with high score. believe on it.
Roger
United StatesAs for me , this dumps is very useful and convenient, I can find my disadvantages easily and know how to correct them. I also can learn new skills and knowledge by using this dumps. I think you also can do it. I have test it so you can trust on it.
Zouleha
United StatesUpdate quickly and be rich in content,this dumps is really valid. Thanks.
Banne
Nigeriatook the exams yesterday and passed. I was very scared at first because the labs came in first so I was spending like 10 to 13mins so I started rushing after the first three labs thinking that I will have more labs. I ended up finishing the exam in an hour..d dumps are valid. I tink there is a new lab. good success
All the products and all the demos on Pass4itsure.com are in PDF version which designed exactly according to the real exam questions and answers. We have free demos for almost all of our products and you can try our demos before buying.
All the latest Q&As are created directly correspond to the real questions and answers by professionals and ensured by experts to guarantee the accuracy. If you understand the knowledge points provided in our Q&As, you can pass the exam easily.
All the products are updated frequently but not on a fixed date. Our professional team pays a great attention to the exam updates and they always upgrade the content accordingly.
The free update offer is only valid for one year after you've purchased the products. If you still want to update your questions after one year, login your account in our site, and you can get the new one with 50% discounts.
After your order has been confirmed, you will be able to download the product instantly. You need to log in your account-click My Account-click the Invoice or Detail, then you will go to the download page. Click the download button to download the product.If it shows "Exam updating. Please download it later." It means there are latest updates for your exam and our expert team is revising the exam. We will send you it via email or you may download it later.
You can enjoy one year free update after your purchase.
Product validation period cannot be extended. But you can renew your product. Please login your account and click the 'Renew' button next to each expired product in your User Center. Renewal of expired product is 50% of the original price and you can use it for another one year.
For Lab user, Adobe Reader and AVI player are required.
Set WinZip as your primary decompress tools which you can download at http://www.winzip.com.
We currently only accepts payments with PayPal (www.paypal.com).
You may contact us to report the case and we will help you to reset your password.
We respect your privacy and, therefore, we do not sell or rent the personal information you provide to us to any third party you do not wish us to do so. Upon your request, we will not share your personal information with any unaffiliated third party. One of our highest priorities is to ensure your privacy and peace of mind by employing some of the most advanced online security in the industry. Every step of the way, we provide you with the state-of-the-art encryption of all data transmitted between your computer and our secure site.
We use the US dollar as the currency in most of our transaction and if you paid in other currency such as Pound, Euro or any other, they will be converted using our real –time currency exchange, so there may be different of your bill.
We do not charge any extra fee. But you may be charged the transaction fee by your bank. You can contact your bank to make sure. We do not take any extra money from our customers.
We offer some discounts to our customers. There is no limit to some special discount. You can check regularly of our site to get the coupons.
Yes. Our PDF of CPA-REGULATION exam is designed to ensure everything which you need to pass your exam successfully. At Pass4itsure.com, we have a completely customer oriented policy. We invite the rich experience and expert knowledge of professionals from the IT certification industry to guarantee the PDF details precisely and logically. Our customers' time is a precious concern for us. This requires us to provide you the products that can be utilized most efficiently.
Yes. We provide 7/24 customer help and information on a wide range of issues. Our service is professional and confidential and your issues will be replied within 12 hous. Feel free to send us any questions and we always try our best to keeping our Customers Satisfied.
Yes, once there are some changes on CPA-REGULATION exam, we will update the study materials timely to make sure that our customer can download the latest edition. The updates are provided free for 120 days.
Any Pass4itsure.com user who fails the corresponding exam has 30 days from the date of purchase of Exam on Pass4itsure.com for a full refund. We can accept and arrange a full refund requests only if your score report or any relevant filed be confirmed.
Home | Contact Us | About Us | FAQ | Guarantee & Policy | Privacy & Policy | Terms & Conditions | How to buy
Copyright © 2024 pass4itsure.com. All Rights Reserved