Reference no: EM132599995

Question 1: A grantor trust allows the grantor to do all of the following, EXCEPT:

A. Revoke or modify the trust

B. Control the disposition of trust property.

C. Distribute current income to the grantor or grantor's spouse.

D. Avoid taxation until the trust is revoked.

Question 2: Which of the following medical deductions are always allowable on a decedent's final return?

A. Only medical expenses that were paid before death.

B. Only medical expenses paid after death.

C. All medical expenses paid during the calendar year.

D. Medical expenses are not deductible on the final return.

Question 3: Which of the following is included on a decedent's final return?

A. Compensation for services rendered before death and received after death.

B. Decedent's share of income from an S corporation for the entire year in the year of death.

C. Gain or loss from a sale completed and payment received by the decedent prior to death.

D. Interest earned by a cash-basis taxpayer prior to death and received after death.

Question 4: Permanent adjustments on Schedule M-1 (Form 1065) include:

A. Depreciation, amortization, and depletion.

B. Government penalties paid, political expenses, and 50% of deductible meals.

C. Political expenses, depreciation, and 50% of deductible meals.

D. 50% of meals and 100% of entertainment, depletion, and government penalties paid.