# Kaplan AC256 unit 10 final exam/ Kaplan AC256 unit 10 final exam - 95999

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Question

1.Characteristics of profit-sharing plans include all of the following except
(Points : 4)

a predetermined formula is used to allocate employer contributions to individual employees and to establish benefit payments.
forfeitures of benefits under the plan may be reallocated to the remaining participants

the company must make contributions to the plan if it has profits during the year.
annual employer contributions are not required, but substantial, recurring contributions that must be made to satisfy the requirement that the plan be permanent.
Question 2.2.Norman traveled to San Francisco for 4 days on vacation and spent another 2 days conducting business for his employer. Norman's plane fare for the trip was \$500, meals cost \$150 per day, hotels cost \$300 per day, and a rental car cost \$150 per day that was used for all 6 days. Norman was not reimbursed by his employer for any expenses. Norman's AGI for the year is \$40,000 and he did not have any other miscellaneous itemized deductions. Norman may deduct (after limitations)
(Points : 4)

\$250.

\$800.

\$1,050.

\$1,200.

Question 3.3.Hunter retired last year and will receive annuity payments for life from his employer's qualified retirement plan of \$30,000 per year starting this year. During his years of employment, Hunter contributed \$130,000 to the plan. Based on IRS tables, his life expectancy is 260 months. All of the contributions were on a pre-tax basis. This year, Hunter will include what amount in income?
(Points : 4)

\$0

\$6,000

\$24,000

\$30,000

Question 4.4.Ron is a university professor who accepts a visiting position at another university for 6 months and obtains a leave of absence from his current employer. Ron rents an apartment near the university and purchases his food. These living expenses incurred by Ron while visiting the university will be
(Points : 4)

deductible for AGI.
deductible from AGI, without application of a floor

deductible from AGI, subject to the 2% of AGI floor

nondeductible

Question 5.5.In 2014, Carlos filed his 2013 state income tax return and paid taxes of \$800. Also in 2014, Carlos's employer withheld state income tax of \$750 from Carlos's salary. In 2015, Carlos filed his 2014 state in