REG Exam Grade A+ Questions & Answers 2024/2025
In which of the following situations will a controlled foreign corporation located in Ireland be deemed to have subpart F income? - ANSWERS1. Property is produced in Ireland by the iIrish company and sold outside its country of incorporation.
2....
In which of the following situations will a controlled foreign corporation located in Ireland be deemed to
have subpart F income? - ANSWERS1. Property is produced in Ireland by the iIrish company and sold
outside its country of incorporation.
2. Services are performed in Ireland by the Irish company under a contract entered into by its US parent.
3. Services are provided by an Irish company in England under a contract entered into by its US parent
4. Property is bought from the controlled foreign corporations US parent and is sold by an Irish company
for use in an Irish manufacturing plant.
Answer: 3 is correct because generally includes income that has no economic connection to the county
of origin.
Troy and Edie are married and under 65. During the current year, they furnish more than half of the
support for their 20 year old daughter, Jobeth, who lives with them. Jobeth earns $15,000 from a part-
time job, most of which she sets aside for future college expenses. Troy and Edie also provide more than
half of the support for Troy's cousin who does not live with them. Edie's father, who died on Jan 3, of the
current year, at age 80, has for many years qualified as their dependent. How many exemptions should
they claim? - ANSWERSThree exemptions. Troy, Edie, and the father.
In a common law action against an accountant, lack of privity is a viable defense if the plaintiff:
1. Is the accountants client
2. Can prove the presence of gross negligence that amounts to the reckless disregard for the truth.
3. Bases the action upon fraud.
4. Is the client's creditor who sues the accountant for negligence. - ANSWERS4. Is the client's creditor
who sues the accountant for negligence.
A plaintiff wishes to recover damages from the issuers of securities for losses resulting from material
misstatements in a securities registration statement. In order to be successful, one of the elements the
plaintiff must prove is that the:
, 1. Plaintiff was in privity of contract with the issuer or that the issuer knew of the plaintiff.
2. Issuer acted fraudulently.
3. Plaintiff acquired the securities
4.Issuer acted negligently. - ANSWERS3. Plaintiff acquired the securities.
Under Section 11 of the 33 Act, the plaintiff must prove that there was a material misstatement and they
suffered damages by acquiring the securities.
Which of the following defenses will release a gratuitous surety from liability to a creditor?
1. Filing of an involuntary petition in bankruptcy against the principal debtor.
2. Fraud by the debtor which induced the surety to enter into the contract and the creditor was unaware
of the fraud.
3. Release of the principal debtor's obligation by the creditor but with the reservation of the creditor's
rights against the surety.
4. The creditor and debtor enter into a binding agreement to extend the debtors time for payment
without the surety's consent. - ANSWERS4. The creditor and debtor enter into a binding agreement to
extend the debtors time for payment without the surety's consent.
A gratuitous surety will be released when the creditor commits fraud, when there is duress or breach,
when the surety lacks capacity or goes bankrupt, or when there is a material change without the surety's
consent.
Under the Sales Article of the UCC, in an auction announced in explicit terms to be without reserve,
when may an auctioneer withdraw the goods put up for sale?
1. At any time until the auctioneer announces completion of the sale.
2. If no bid is made within a reasonable time. - ANSWERS2. If no bid is made within a reasonable time.
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