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Last Updated: Sep 30, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Federal Taxation of Property Transactions | 12–22% | - Property transactions
|
| Federal Taxation of Individuals | 15–25% | - Individual income taxation
|
| Ethics, Professional Responsibilities, and Federal Tax Procedures | 15–25% | - Ethics and professional conduct
|
| Business Law | 10–20% | - Business structure law
|
| Federal Taxation of Entities | 18–28% | - Business entity taxation
|
In a tax year where the taxpayer pays qualified education expenses, interest income on the redemption of
qualified U.S. Series EE Bonds may be excluded from gross income. The exclusion is subject to a
modified gross income limitation and a limit of aggregate bond proceeds in excess of qualified higher
education expenses. Which of the following is (are) true?
I. The exclusion applies for education expenses incurred by the taxpayer, the taxpayer's spouse, or any
person whom the taxpayer may claim as a dependent for the year.
II. "Otherwise qualified higher education expenses" must be reduced by qualified scholarships not
includible in gross income.
Correct Answer: D 🗳️
Explanation: Only visible for PracticeMaterial members. You can sign-up / login (it's free).
Under a $150,000 insurance policy on her deceased father's life, May Green is to receive $12,000 per
year for 15 years. Of the $12,000 received in 1987, the amount subject to income tax is:
Correct Answer: B 🗳️
Explanation: Only visible for PracticeMaterial members. You can sign-up / login (it's free).
Which of the following statements is the best definition of real property?
Correct Answer: D 🗳️
Among which of the following related parties are losses from sales and exchanges not recognized for tax
purposes?
Correct Answer: B 🗳️
Explanation: Only visible for PracticeMaterial members. You can sign-up / login (it's free).
In the current year Jensen had the following items:
What is Jensen's AGI for the current year?
Correct Answer: C 🗳️
Explanation: Only visible for PracticeMaterial members. You can sign-up / login (it's free).
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