AICPA Regulation

Question 1

Which of the following is considered taxable income for an individual under U.S. federal tax law?

Accepted Answer

Alimony received (for divorce agreements executed after December 31, 2018)

Answer

Gifts and inheritances

Answer

Child support payments

Answer

Interest income from municipal bonds

Question 2

What is the maximum amount of the lifetime estate and gift tax exemption for an individual in 2025?

Accepted Answer

$12.92 million

Answer

$11.7 million

Answer

$13.5 million

Answer

$15 million

Question 3

Which of the following business entities is generally subject to pass-through taxation?

Accepted Answer

S Corporation

Answer

C Corporation

Answer

Limited Liability Company (LLC) taxed as a C Corporation

Answer

Partnership

Question 4

Which of the following deductions is allowed under the Tax Cuts and Jobs Act (TCJA) for individual taxpayers?

Accepted Answer

Deduction for state and local taxes (SALT) up to $10,000

Answer

Deduction for personal exemptions

Answer

Deduction for mortgage insurance premiums

Answer

Deduction for unreimbursed employee expenses

Question 5

What is the primary purpose of the Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

To prohibit U.S. companies from engaging in bribery of foreign officials

Answer

To regulate financial reporting and auditing practices

Answer

To establish anti-money laundering requirements

Answer

To protect whistleblowers in financial institutions