AICPA Regulation 2

Question 1

Under the Internal Revenue Code, which entity type is subject to the 21% flat corporate income tax rate established by the Tax Cuts and Jobs Act of 2017?

Accepted Answer

C corporation

Answer

C corporations are subject to the flat 21% corporate income tax rate enacted by the TCJA; pass-through entities are not subject to this tax at the entity level.

Question 2

A taxpayer who is both self-employed and an employee may deduct the employer-equivalent portion of self-employment tax as a(n):

Accepted Answer

Above-the-line deduction on Schedule 1

Answer

The deductible portion (50%) of self-employment tax is an above-the-line adjustment to gross income, reducing AGI without requiring itemization.

Question 3

Under the Sarbanes-Oxley Act, which of the following is prohibited for a registered public accounting firm providing audit services to a public company?

Accepted Answer

Providing bookkeeping services for the audit client

Answer

SOX prohibits auditors of public companies from providing bookkeeping or other accounting services that would later be subject to audit, creating a self-review threat.

Question 4

For federal gift tax purposes, the annual exclusion per donee for 2024 is:

Accepted Answer

$18,000

Answer

The annual gift tax exclusion for 2024 is $18,000 per donee, allowing donors to give this amount to any number of recipients free of gift tax reporting.

Question 5

Which type of bankruptcy reorganization allows individuals with regular income to repay debts over a 3- to 5-year plan?

Accepted Answer

Chapter 13

Answer

Chapter 13 bankruptcy allows wage earners to keep assets and repay all or part of their debts under a court-approved payment plan lasting 3 to 5 years.

(AICPA) American Institute of Certified Public Accountants Practice Test

(AICPA) American Institute of Certified Public Accountants Practice Test

AICPA Regulation 2