REG Study Group Q4 2014 - Page 228

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  • #632612
    Anonymous
    Inactive

    B is correct for 8!

    #632613
    Anonymous
    Inactive

    9 – Ultramares requires privity before an accountant is liable for negligence – A

    #632614
    MommyBear
    Member

    Correct!!

    #632615
    Anonymous
    Inactive

    Woo-hoo!

    #632616
    Anonymous
    Inactive

    10–Carr Corp. declares a 7% stock dividend on its common stock. The dividend

    A. Must be registered with the SEC pursuant to the Securities Act of 1933.

    B. Is includable in the gross income of the recipient taxpayers in the year of receipt.

    C. Has no effect on Carr's earnings and profits for federal income-tax purposes.

    D. Requires a vote of Carr's stockholders.

    #632617
    MommyBear
    Member

    C

    #632618
    Anonymous
    Inactive

    C is correct!

    #632619
    Anonymous
    Inactive

    11–Rail, who was 16 years old, purchased an $800 computer from Elco Electronics. Rail and Elco are located in a state where the age of majority is 18. On several occasions, Rail returned the computer to Elco for repairs. Rail was very unhappy with the computer. Two days after reaching the age of 18, Rail was still frustrated with the computer's reliability and returned it to Elco, demanding an $800 refund. Elco refused, claiming that Rail no longer had a right to disaffirm the contract.

    Elco's refusal is

    A. Correct, because Rail's multiple requests for service acted as a ratification of the contract.

    B. Correct, because Rail could have transferred good title to a good faith purchaser for value.

    C. Incorrect, because Rail disaffirmed the contract within a reasonable period of time after reaching the age of 18.

    D. Incorrect, because Rail could disaffirm the contract at any time.

    #632620
    MommyBear
    Member

    C

    #632621
    Anonymous
    Inactive

    C is correct! Way to go @MommyBear!!!

    #632622
    Anonymous
    Inactive

    12–What type of conduct generally will make a contract voidable?

    A. Fraud in the execution.

    B. Fraud in the inducement.

    C. Physical coercion.

    D. Contracting with a person under guardianship.

    #632623
    Anonymous
    Inactive

    Void vs Voidable get me all the time – put it on the list!

    #632624
    CPAfit
    Participant

    @bucky C

    #632625
    CPAfit
    Participant

    @bucky for voidable question B. Fraud in inducement

    #632626
    MommyBear
    Member

    B

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