[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

A is correct! @MommyBear – do you want to continue with BusLaw, or switch it up a bit?

[MommyBear]

I'm fine with anything. I'm working in Ninja at the same time and I'm doing everything over there. I thought you left so I'll start posting some questions again too.

[MommyBear]

14–Under the provisions of a decedent's will, the following cash disbursements were made by the estate's executor:

A charitable bequest to the American Red Cross

Payment of the decedent's funeral expenses

What deduction(s) is (are) allowable in determining the decedent's taxable estate?

1 only

2 only

both

neither

[Anonymous]

14 -C – Both? – it's either 1 only or both.

[MommyBear]

Both–funeral expenses are deducted from the estate as well

[Anonymous]

Is it the tax return that the funeral expenses can't be deducted? I think that's where I get confused – returns vs. estate.

[Anonymous]

15–

Wilson and Thomas are partners. Wilson contributes $150,000 to the partnership, and Thomas contributes $50,000. Wilson does 40% of the work, and Thomas does 60%. They do not have a partnership agreement that addresses the sharing of profits and losses. By the end of the year, the partnership has earned a profit of $200,000. What is Wilson's share of the profit under the Revised Uniform Partnership Act?

A. $80,000

B. $100,000

C. $115,000

D. $150,000

[MommyBear]

It is deducted from the estate, which is used to calculate the tax on the tax return I think.

[MommyBear]

15-B

[MommyBear]

I think you may be thinking about the difference between the decendent's final tax return and the estate's tax return.

[MommyBear]

16–Which of the following acts constitute(s) grounds for a tax preparer penalty?

Without the taxpayer's consent, the tax preparer disclosed taxpayer income tax return information under an order from a state court.

At the taxpayer's suggestion, the tax preparer deducted the expenses of the taxpayer's personal domestic help as a business expense on the taxpayer's individual tax return.

1 only

2 only

both

neither

[Anonymous]

@MommyBear – you are SO right! Adding to my list. And, B is right.

[Anonymous]

16 – D – Neither?

[MommyBear]

It's 2 only. Domestic help for an individual is NOT a business expense. They have to actually own a business to have business expenses.

[Anonymous]

Duh, I knew that.

[Author]

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