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NEW QUESTION 374
Section B (2 Mark)
As a result of a lawsuit, Catherine was awarded $300,000 for compensatory damages and $400,000 for punitive damages. What is the taxable income resulting from this suit?
- A. $300,000
- B. $700,000
- C. $0
- D. $400,000
Answer: D
NEW QUESTION 375
Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Dividends in UAE is charged at:
- A. 22.5
- B. 0
- C. 1
- D. Nil
Answer: C
NEW QUESTION 376
Section B (2 Mark)
Commutation of pension up to a limit of _______________ is tax exempt in case the gratuity is also received.
- A. 1/4 of the pension
- B. 3/4 of the pension
- C. 1/3 of the pension
- D. 1/2 of the pension
Answer: C
NEW QUESTION 377
Section C (4 Mark)
In 2011-12, Lily (who is resident and ordinarily resident in the UK for the year) earns a gross salary from her UK employment of £45,000. PAYE (Pay as you Earn)of £7,600 is deducted from this income.
She owns a holiday home in France and receives rents of £2,250 for the year. This is the net figure after withholding tax of 25% has been deducted.
Her income tax payable for the year is:
- A. £1,610
- B. £860
- C. £9,210
- D. £410
Answer: B
NEW QUESTION 378
Section C (4 Mark)
The Puri's family includes a financially well-informed couple, both aged 34, and two children aged 4 and 6.
They are financially sound, but were not in the market during the Indian Bull market of the 2003 to 2007 as many of their neighbors were. The couple's total income, Rs. 12,00,000, which they do not expect to grow significantly in times to come They have saved 15,00,000, which they hope will be the financial foundation from which they will send their children to college and retire comfortably.
Which of the following biases does the Puri Family suffer from:?
- A. II,IV and V
- B. I,II,III and IV
- C. I,III and V
- D. III and IV
Answer: C
NEW QUESTION 379
Section C (4 Mark)
Read the senario and answer to the question.
Assuming that Mahesh owns a building which he insures along with its contents for Rs. 12 lakh. However the market value of the building and its content is Rs. 15 lakh. Assuming that the building along with its contents is partially destroyed by fire and the loss assessed of Rs. 1 lakh what is the amount of money insurance company would pay as claim reimbursement to Mahesh?
- A. Rs. 80000
- B. Rs. 95000
- C. Rs. 85000
- D. Rs. 82000
Answer: A
NEW QUESTION 380
Section B (2 Mark)
Total income for assessment year 2012-13 of an individual including long-term capital gain of Rs. 60,000/- is Rs. 1,80,000/-. The tax on total income shall be: [CII-12-13: 852,11-12: 785,10-11:711]
- A. Rs. 4,120/-
- B. Rs. 6,525/-
- C. Rs. 6,600/-
- D. Rs. 6,798/-
Answer: A
NEW QUESTION 381
Section A (1 Mark)
Customer services are defined as:
- A. Increasing the value that buyer receives for their purchase
- B. Building company image
- C. The provision of labor and other resources
- D. Provision of all resources and benefits to customers
Answer: D
NEW QUESTION 382
Section B (2 Mark)
Contribution under a defined benefit plan
- A. Will remain unaltered once earned
- B. Will be fixed in relation to the wages earned
- C. Will be decided by the members of the benefit scheme
- D. Will be determined based on the benefits earned
Answer: D
Explanation:
Section C (4 Mark)
Mr. Raman Gehlot, aged 55 years, is owner of midsized business firm. His family consists of his wife Anupama, aged 55, son Nishant aged 29 and daughter Nivedita aged 27. His wife is a housewife and social worker. Both of their children are happily married and well settled. The couple anticipates their life expectancy to be 75 years each.
The gross annual income of Raman for the previous year 2010-11 is expected to be Rs. 9,60,000. The couples' household expenses are estimated to be Rs. 4,90,000 p.a. Taking into account incidental expenses of another Rs. 85,000 the net expenses of the family are estimated to be Rs. 5,75,000 for the previous year 2010-11. Thus they achieved a net surplus of Rs. 3,85,000 during the year. Raman has a net saving of Rs. 12,00,000 which he would like to invest for his post retirement purposes at the beginning of the year.
Currently Raman has approximately 5 years left for retirement and thus he is not very aggressive in his investments. The returns of his portfolio based on asset allocation during the accumulation and distribution phase are calculated as below:
NEW QUESTION 383
Section A (1 Mark)
In US, how many states do not have a corporate income tax?
- A. 0
- B. All of the above
- C. 1
- D. 2
Answer: D
NEW QUESTION 384
Section A (1 Mark)
If the intrinsic value of a stock is greater than market value, which of the following is a reasonable conclusion?
- A. The market is overvaluing the stock.
- B. The market is undervaluing the stock.
- C. The stock has a low level of risk.
- D. The stock offers a high dividend payout ratio.
Answer: B
NEW QUESTION 385
Section A (1 Mark)
Loss of a closely held company cannot be carried and set off unless on the last day of the previous year in which the loss was incurred and as on the last day of the previous year in which such loss is set off, at least:
- A. 51% of shares are beneficially held by the same persons
- B. 50% of the shares are beneficially held by the same persons
- C. 60% of the shares are beneficially held by the same persons
- D. 49% of the shares are beneficially held by the same persons
Answer: A
NEW QUESTION 386
Section C (4 Mark)
You own 3 scripts with their market value at
Calculate the CAGR of portfolio.
- A. 11.16%
- B. 5%
- C. 10.26%
- D. 1.64%
Answer: D
NEW QUESTION 387
Section A (1 Mark)
A type of trust in which assets are passed down to the grantors grandchildren not the grantors children
- A. Express trust
- B. Discretionary trust
- C. Dynasty trust
- D. Private. trust
Answer: C
NEW QUESTION 388
Section A (1 Mark)
The principle in real estate valuation which acknowledges limitation on growth in market value, not ably in the case of improvements is known as:
- A. Contribution
- B. Conformity
- C. Substitution
- D. Highest and best use
Answer: A
NEW QUESTION 389
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