ACCT553: FINAL EXAM STUDY GUIDELINES
The Final Exam will be administered during Week 8. It consists of 16 multiple-choice questions (five points each) totaling 80 points and 10 essay questions (17 points each) totaling 170 points for a grand total of 250 points. It is a 3.5-hour exam. There are some basic calculations involved, so a simple calculator may be useful. Showing your work will count towards your overall points, so make sure that your answer consists of more than just numbers.
The Final Exam is cumulative. It covers all of the readings, lectures, threaded discussions, and homework assignments from Weeks 1-7. However, most of your preparation should focus on the following:
1. The assigned problems for Weeks 1-7
2. The threaded discussions from Weeks 1-7
3. Homework ES 1 and 2
4. The concepts that you learned in the You Decide Activities 1 and 2
Also, make sure that you review the following concepts and examples:
TCO A: Demonstrate familiarity with the basic fundamentals and forms of taxation and the underlying policy considerations that drive the imposition of income and other taxes.
1. Schedule A tax deductions
2. U.S. Tax Court
3. U.S. District Court
4. Tax evasion
TCO B: Illustrate the impact of taxation as a transaction cost, understand the importance and methods of research and planning to minimize tax liability, and describe the framework for tax compliance.
1. Taxation of corporations--Review Problem 14-55.
2. Schedule A charitable contributions and limitations
3. Forgiveness of debt-taxable and nontaxable
TCO C: Understand and apply concepts and principles that measure taxable income derived from business activities; including choice of entity, methods of accounting for business income, issues of timing, and net operating losses.
1. Gross income
2. Exclusions from gross income
TCO D: To measure income derived from property held for business or investment, identify the nature of such property, and explain and evaluate the tax implications of property acquisitions and the various forms of cost recovery.
1. Losses on worthless stock
TCO E: To measure income derived from property held for business or investment, explain the tax implications of property disposition, analyze and evaluate the opportunities for strategic tax planning in realization and recognition, and understand the forms and uses of non-taxable exchange transactions.
1. Assignment of income doctrine
2. Fruit of the tree
3. Constructive receipt doctrine
4. Economic benefit doctrine
5. Active income
6. Passive income
7. Portfolio income
8. Computation of gain on sale of business property
+Fair market value of property and services received
+Liabilities of seller assumed by buyer
-Adjusted basis of property given up
TCO F: To measure income derived from business activities, identify the basic forms of conducting business, and distinguish and explain the tax implications for income earned and losses incurred by a sole proprietor, partnership, and corporation.
1. Boot, including how it affects the giver and the recipient’s taxable income 2. Like-kind exchanges
3. Qualifying like-kind exchanges
4. Sole proprietors, net operating losses, and capital losses 5. C corporations, net operating losses, capital losses
6. Basic concepts of corporate reorganizations, including A-, B-, C-, D-, E-, F-, and G-type reorganizations 7. Sole proprietorships
8. Business bad debts
9. Amortization of intangibles
TCO G: To measure income of a person derived from business activities, explain the nature and treatment of income earned by an individual as an employee, and describe and assess the effectiveness of compensation and retirement planning strategies for the business.
1. Components of common body of tax law
2. Role of U.S. Constitution and Congress in creating tax...
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