CRPC EXAM 2024-2025 ACTUAL EXAM 180
QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
Practice questions for this set
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D
Qualified dividends are subject to preferential long-term capital gain rates.
Net capital losses up to $3,000 per year can be used to offset ordinary
income and any additional losses can be carried forward to a future year.
Dividends are subject to taxation, even if reinvested. In a taxable account,
traders certainly do need to take into account the timing and taxability of their
security transactions.
LO 8-1
Give this one a try later!
, A springing durable power of attorney
A)
is usually created in a person's revocable trust.
1 B)
remains effective after the principal's death.
C)
gives the attorney-in-fact authority only when the principal is deemed incompetent.
D)
remains effective until the principal becomes incapacitated.
Which one of the following is correct regarding taxation of mutual funds?
A)
A distribution of interest income from public-purpose municipal bonds may create an
alternative minimum tax problem.
B)
2 An exchange of shares in one fund to shares of another fund within the same family will
create a taxable event.
C)
The use of the FIFO method of basis determination generally will result in the lowest
gain during a bull market.
D)
LIFO is the method assumed by the IRS if the taxpayer fails to select another method.
Pa started receiving his Social Security benefits one year after his full retirement age
(FRA). His primary insurance amount (PIA) was $1,800, but his delayed retirement
credits took his monthly benefit up to $1,944. Ma started her Social Security early
based on her work history. Her PIA was $1,200, but she received $840/month because
she started her benefits four years early. Ma was one year past her FRA for survivor
benefits when Pa died and she started receiving her survivor benefits. How much
would she get each month?
3
A)
$1,800
, B)
$1,944
C)
$2,928
D)
$2,088
Which one of the following statements is correct regarding managing a taxable
account?
A)
Net capital losses of $5,000 may be used in full to reduce taxable income for the
current year.
B)
Taxation on dividends that are reinvested is deferred until ultimate disposition of the
stock.
C)
Active traders need not worry about the timing or taxability of their transactions.
D)
Qualified dividends are generally subject to a preferential tax rate of 0%, 15%, or 20%.
Don't know?
Terms in this set (179)
Mary Goodwin's financial Assets = $263,000; liabilities = $141,000, so net worth is
situation is as follows: $122,000. Taxes and auto note payments appear on the
Cash/cash cash flow statement. 1-3
equivalents$15,000
Short-term debts$8,000
Long-term debts$133,000
Tax expense $7,000
Auto note payments $4,000
Invested assets $60,000
Use assets $188,000
What is her net worth?
, Salaries$70,000 Income = $70,000 + $1,100 + $2,100 = $73,200. Expenses =
Auto payments$5,000 $5,000 + $3,800 + $8,000 + $3,500 + $14,000 + $13,000 +
Insurance payments$3,800 $9,000 + $8,400 + $5,800 = $70,500, so there is a surplus
Food$8,000 of $2,700. The checking account and credit card
Credit card balance$10,000 balances would be on the statement of financial
Dividends$1,100 position.
Utilities$3,500 LO 1-3
Mortgage payments$14,000
Taxes$13,000
Clothing$9,000
Interest income$2,100
Checking account$4,000
Vacations$8,400
Donations$5,800
What is the cash flow
surplus or (deficit) for Bill?
Income replacement percentages are typically much
higher for those with lower preretirement incomes.
Income replacement percentages vary between low-
income and high-income retirees.
Income replacement ratios should not be used as the
correct statements about only basis for planning.
income replacement
percentages Income replacement ratios are useful for younger clients
as a guide to their long-range planning and investing.
The inverse of Option I is true. Those with a lower
preretirement income typically need a much higher
income replacement percentage in retirement.
LO 1-4
