Reference no: EM133090149

Questions -

Q1) An investment will pay $220 two years from now, $758 four years from now, and $1,359 five years from now. Your client is going to reinvest these cash flows at a rate of 7.94 percent per year. What is the future value of this investment at the end of year five?

Q2) Paul wants to make a gift of $10,000 in today's dollars to his parents at the end of each of the next 26 years. If the annual rate of return is 8.7% and inflation is 3.3%, what is the value of the funds he must have in hand today to meet this need for the 26-year period?

Q3) Your client is employed by a large multinational corporation headquartered in your city. She worked for the company in her native country for five years before being assigned to a U.S.-based position last year. She knows that her employer arranged for a visa for her, but he is unsure about what type of visa and doesn't have any of her paperwork. Your client is likely:

a. a lawful permanent resident

b. a naturalized citizen

c. an undocumented immigrant

d. a foreign national

Q4) Consular identification may sometimes be used as proper I.D. when establishing a bank account.

True

False

Q5) The Patriot Act prohibits U.S. taxpayers from making donations to a foreign charity.

True

False

Q6) Your client was born and raised in the U.S., but his parents are immigrants from Laos. Based on the work that you have done for him in the past, they have agreed to use your for their retirement planning. Everyone has agreed that a professional interpreter is appropriate. When you call the interpreter service, they ask you what kind of interpretation you require. What is the best choice for an informal session with your client and his parents?

a. simultaneous interpretation

b. relay interpretation

c. consecutive interpretation

d. liaison interpretation

Q7) Spoken languages are interpreted, while written documents are translated.

True

False

Q8) For U.S. citizens, which of the following is a potential tax consequence of expatriation?

a. The imposition of an 'exit tax"

b. Enhanced FBAR and FATCA compliance rules

c. Additional AMT obligations

d. A requirement to make estimated tax payments after expatriation

Q9) The "substantial presence test" is used to determine a foreign national's residency for income and estate tax purposes.

True

False