Wiley CPA Review QOTD – REG

By Jeff January 13, 2011

The following is from the Wiley CPA 2011 Test Bank Software (Online). Click here to get over 1,100 REG CPA Exam practice questions for $87.

Topic: Individual Taxation

Seymour Thomas named his wife, Penelope, the beneficiary of a $100,000 (face amount) insurance policy on his life. The policy provided that upon his death, the proceeds would be paid to Penelope with interest over her present life expectancy, which was calculated at 25 years. Seymour died during 2010 and Penelope received a payment of $5,200 from the insurance company. What amount should she include in her gross income for 2010?

A: $ 200
B: $1,200
C: $4,200
D: $5,200

Wiley CPA REG MCQ: Contracts

By Jeff Elliott, CPA June 12, 2016

The following REG question is from the Wiley CPA Review REG Online Test Bank. Under the parol evidence rule, oral evidence will be excluded if it relates to A. A contemporaneous oral agreement relating to a term in the contract. B. Failure of a condition precedent. C. Lack of contractual capacity. D. A modification made […]

Wiley CPA REG MCQ: Property Law

By Jeff Elliott, CPA June 12, 2016

The following REG question is from the Wiley CPA Review REG Online Test Bank. Purdy purchased real property from Hart and received a warranty deed with full covenants. Recordation of this deed is: A: Not necessary if the deed provides that recordation is not required. B: Necessary to vest the purchasers legal title to the […]

MCQ Quick Hits: REG Corporate Taxation

By Jeff June 12, 2016

The following is from the Online Wiley CPA Software. Used with permission from the Publisher. 1. In 2009, Dr. Ernest Griffiths, a cash-basis taxpayer, incorporated his medical practice. No liabilities were transferred. The following assets were transferred to the corporation: Cash: $20,000 Equipment: Adjusted basis 140,000 Fair market value 180,000 Immediately after the transfer, Griffiths […]

Wiley CPA Online Test Bank: REG Agency

By Jeff June 12, 2016

From the Online Wiley CPA Software [download id=”14″]

3 comments

nicole 10 years ago

$1200, answer B

Nupur 10 years ago

B (100,000/25 = 4,000. So out of proceeds of 5,200, $4,000 is life insurance proceed on face amount of policy, which is non taxable, and 1,200 is interest which ll be taxed).

jitendra patel 10 years ago

100000/25 yrs = 4000 $ 5200$ - 4000 $ = 1200 $ as a taxation.