Discuss AICPA CPA-Regulation Exam Topic 1 Question 12

Clark bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Clark's dependent child. One of the conditions that must be met for tax exemption of accumulated interest on these bonds is that the:

APurchaser of the bonds must be the sole owner of the bonds (or joint owner with his or her spouse).

BBonds must be bought by a parent (or both parents) and put in the name of the dependent child.

CBonds must be bought by the owner of the bonds before the owner reaches the age of 24.

DBonds must be transferred to the college for redemption by the college rather than by the owner of the bonds.

Suggested Answer: A

Choice 'a' is correct. One of the conditions that must be met for tax exemption of accumulated interest on the bonds is that the purchaser of the bonds must be the sole owner of the bonds (or joint owner with his or her spouse).

Choice 'b' is incorrect. The bonds must be bought and put in the name of the owner or co-owner, not in the name of the dependent child.

Choice 'c' is incorrect. The owner must be at least 24 years old before the bonds issue date.

Choice 'd' is incorrect. There is no requirement that the bonds must be transferred to the college for redemption by the college rather than by the owner of the bonds.

Get Premium CPA-Regulation Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

10 comments · newest first

Tran 11 months ago

Really? I had no idea about the age limit!

Xuan 12 months ago

Nope, that's not how it works!

Mattie 12 months ago

Wait, I thought the child had to be the owner?

Truman 12 months ago

Totally agree, it's all about who buys them!

Marguerita 1 year ago

The bonds need to be owned by a parent for tax exemption.

Doug 1 year ago

Okay, the key here is understanding the distinction between launching the file and not launching the file. I think option C is the correct answer.

Carin 1 year ago

I think the simplest way to consume cloud services for general purposes is Software as a Service (SaaS). It's the most user-friendly option and doesn't require much technical knowledge.

Theola 1 year ago

This question seems straightforward - I just need to identify the false statement out of the four options. I'll carefully read through each one and think about which one doesn't align with the information provided.

Dusti 1 year ago

Hmm, I'm a bit unsure about this one. The dial-peer configuration seems similar across the options, so I'll need to pay close attention to the codec settings to determine the correct answer.

Julio 1 year ago

Okay, I think I've got this. UiPath doesn't handle exceptions by default, so we need to proactively manage them in our workflows. Using conditional blocks for business exceptions and Try Catch for application exceptions should cover all the bases.

AICPA CPA-Regulation Exam - Topic 1 Question 12 Discussion