Question

1.) Cavin sells stock several years after he received it as a distribution from qualified stock bonus plan when the stock was distributed, he had a net unrealized appreciation of $ 7,500.Cavin also had ordinary income from the distribution of $ 29,000.The fair market value of the stock and the sales price at the time of sale was $ 81,000.How much of the sale price will be subject to long term capital gain treatment?
a.)$7,500
b.)$44,500
c.)$52,000
d.)$73,500

2.) Davin sells stock six months after he received it as a distribution from a qualified stock bonus plan.When the stock was distributed,he had a net unrealized appreciation of $ 7,500.He also had ordinary income from the distribution of $ 29,000.Teh fair value of the stock at the time of sale was $ 81,000.How much of the sale price will be subject to long term capital gain treatment?
a.)$ 7,500
b.)$44,500
c.)$52,000
d.)$73,500

3.) Taylor, age 65 retires from Tickle Tile corporation and receives 25,000 shares of Tickle Tile stock with the fair market value of
$500,000 in 2014.Taylor recognized $ 48,000 of ordinary income upon the distribution. What is Taylor’s NUA immediately after the distribution?
a.)$48,000
b.)$348,000
c.)$452,000
d.)$500,000

4.) Rustin recently retired from Fox Inc. a national plastics supplier. When Rustin retired his stock bonus plan had 10,000 shares of Fox,Inc took deductions equal to $ 20 per share for the contributions made on Rustin’s behalf. At retirement Rustin took a lump-sum distribution of the employers stock. The fair market value of the stock at distribution of the employer stock. The fair market value of the stock at distribution was $ 35 per share. Six months after distribution, Rustin sold the stock for $ 40 per share. What amount was subject to ordinary income tax on Rustin’s tax return at the date Fox,Inc.contributed the stock to the plan.
a.)$0
b.)$200,000
c.)$350,000
d.)$400,000

5.) Assume the same facts presented in question 12,What amount was subject to ordinary income on Rustin’s tax return at the date the stock was distributed.?
a.)$0
b.)$200,000
c.)$350,000
d.)$400,000

6.) Gerry is 70 ½ on April 1 of the current year and must receive a minimum distribution from his qualified plan.The account balance had a value of $ 423,598 at the end of last year.The distribution period for a 70 year old is 27.4 and for a 71 year old it is 26.5.If Gerry takes a $ 15,000 distribution next April 1st what is the amount of the minimum distribution tax penalty associated with his first year’s distribution?
a.)$0
b.)$230
c.)$492
d.)$985

7.)   Jose Sequential age 70 ½ in October of this year, worked for several companies over his lifetime. He has worked for the following companies (A-E) and still has the following qualified plan account balances at those companies..
COMPANY JOSE’S ACCOUNT BALANCE
A $250,000
B $350,000
C $150,000
D $350,000
E $200,000

8.) JOSE IS CURRENTLY EMPLOYED WITH COMPANY E .What if any is his required minimum distribution for the current year from all plans?
Life expectancy tables are 27.4 fro age 70 and 26.5 for age 71
a.)$0
b.)$40,146
c.)$41,509
d.)$47,445

9.) On January 5 Cindy, age 39 withdrew $ 42,000 from her qualified plan. Cindy
had an account balance of $ 180,000 and an adjusted basic in the account of $ 30,000.Calcualte any early withdrawal penalty.
a.)$0
b.)$1,200
c.)$3,500
d.)$4,200

10.) Nancy age 70 on February 2,2014 had the following account balances in a qualified retirement plan.
12/31/2013 $500,000
12/31/2014 $478,000
12/31/2015 $419,000
12/31/2016 $600,000
Assuming that Nancy is retired and has never taken a distribution prior to 2015.what is the total amount of minimum distribution required in 2015?Life expectancy factors according to the uniform life table are 27.4 for a 70 year old and 26.5 for a 71 year old.
a.)$18,038
b.)$18,248
c.)$35,597
d.)$36,286

11.) Jim, a participant in the Zappa retirement plan, has requested a second plan loan,Jim’svested account balance $ 80,000.He borrowed $ 27,000 eight months ago and still owes $ 18,000 on that loan. How much can he borrow as a second loan?
a.)$13,000
b.)$22,000
c.)$23,000
d.)$31,000

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1.) Cavin sells stock several years after he received it as a distribution from qualified stock bonus plan when the stock was distributed, he had a net unrealized appreciation of $ 7,500.Cavin also had ordinary income from the distribution of $ 29,000.The fair market value of the stock and the sales price at the time of sale was $ 81,000.How much of the sale price will be subject to long term capital gain treatment?
a.)$7,500
b.)$44,500
c.)$52,000
d.)$73,500

The answer is option c.)

2.) Davin sells stock six months after he received it as a distribution from a qualified stock bonus plan. When the stock was distributed, the had a net unrealized appreciation of $ 7,500.He also had ordinary income from the distribution of $ 29,000.Teh fair value of the stock at the time of sale was $ 81,000.How much of the sale price will be subject to long term capital gain treatment?
a.)$ 7,500
b.)$44,500
c.)$52,000
d.)$73,500

The answer is option a.)...

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