Part 4

Under current tax law (2019), how much can a married couple give to their adult son and his wife without incurring a gift tax obligation?

$60,000

A 457 plan could cover which of the following?

1. Independent contractors providing services to the county 2. City employees

GHI currently has earnings of $4 and pays a $0.50 quarterly dividend. If GHI's market price is $40, the current yield is?

5%

There would generally be no tax implications in a variable life insurance account if?

A loan is taken equal to 95% of the policy's cash value

Which of the following business accounts does not require considering the suitability of the owners?

C corporation

Which of the following business entities files a tax return on the 15th day of the 4th month after the end of the calendar (or fiscal) year?

C corporations on Form 1120

Which of the following statements regarding a qualified profit-sharing plan is TRUE?

It must be established under a trust agreement

Which of the following entities would issue a Schedule K-1?

Limited Partnership

Which of the following is the form of portfolio management that rotates between sectors based on changes to the business cycle?

Segment rotation

Janice is investing in stocks that are temporarily neglected by the market and often have high-dividend yields. What style is this?

Value

Investors looking to minimize the effects of taxation on their investments would probably receive the least benefit from?

a corporate bond

A portfolio that maximizes an investor's preferences with respect to return and risk is called?

an optimal portfolio

The risk/return pyramid where the bottom is lowest risk and the "point" is the highest, generally places commodities?

at the top

Each of the following are advantages offered by a nonqualified deferred compensation plan that are not found in a qualified plan EXCEPT?

employer contributions to the plan are not subject to current taxation to the employee

Dollar Cost Averaging

investing roughly equal amounts of money at regular intervals

To use the Capital Asset Pricing Model you do not need?

the standard deviation of a stock

Because a trust account is managed for the beneficial interest of the beneficiary, the investment adviser representative handling the account can?

have a check drawn on the account payable to the trustee for trustee expenses

Using industry jargon, the tax on the last dollar of income is at?

the marginal rate