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

**Subject Business Finance**