American College HS330 Exam - Topic 1 Question 24 Discussion

Actual exam question for American College's HS330 exam

Question #: 24
Topic #: 1

The owner of a successful business wishes to sell it to his employee-son so that he can retire. The business is worth substantially more than the owner's basis. The owner and the employeeson have agreed to an installment sale. Which of the following statements concerning this sale is (are) correct?

l. The present value of any unpaid installments remaining at the owner's death is includible in his estate.

ll. lnstallment payments are received free of income tax until the seller recovers his basis.

Al only

BII only

CBoth I and ll

DNeither l nor ll

Show Suggested Answer

Suggested Answer: A

by Carmelina at May 09, 2022, 03:17 PM

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Monroe

4 months ago

I thought estate taxes applied to all assets, not just unpaid installments.

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Sean

4 months ago

Both statements seem correct to me.

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Carin

4 months ago

Wait, are installment payments really tax-free until the basis is recovered?

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Rickie

4 months ago

I disagree, statement II isn't accurate.

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Elise

5 months ago

I think statement I is definitely true.

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Elke

5 months ago

I'm a little confused on this one. All four dimensions seem relevant to service delivery, so it's hard to say which one contributes the most. I'll have to review my notes and try to really understand the differences between the dimensions.

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Tesha

5 months ago

This looks like a pretty straightforward H.323 troubleshooting question. I'm pretty confident I can figure this one out.

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Sheridan

5 months ago

This question seems straightforward. I think the answer is D - using a compromised VM to exploit a hypervisor and take control of other VMs.

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Sharita

5 months ago

Hmm, I'm not entirely sure about this one. I know Hyper-V is a virtualization platform, but I can't recall the specific file extension off the top of my head. I'll have to think this through carefully.

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