Purchase Solution

Certified Financial Planner practice exam questions

Not what you're looking for?

Ask Custom Question

These are sample Certified Financial Planner exam test questions from my textbook:

If a client's primary goal in making lifetime gifts to his children is to lower his estate taxes he should make gifts of property that
A. Are expected to depreciate significantly in the future
B. Are expected to appreciate significantly in the future
C. Have already depreciated significantly
D. Have already appreciated significantly

Someone received a bequest of 100 shares of stock from a relative who died on March 1 of this year. The relative bought the stock at a total cost of $5,500. The value of the 100 shares of stock was $5,750 on March 1. Its value rose to $6,250 on July 1 of this year, on which day the individual sold it for $6,250, incurring expenses for the sale of $250. The taxable gain on the sale would be a
A. $250 long-term capital gain
B. $250 short-term capital gain
C. $500 long-term capital gain
D. $500 short-term capital gain

A corporation's current dividend is $3.85. If future dividends are expected to grow at 4% forever, which of the following amounts should the corporation's stock sell for it the required rate of return on the stock is 14%?
A. $28.57
B. $38.50
C. $40.04
D. $41.60
Please provide the formula for this. I had it written down, but I've lost it.

Your client, a wealthy physician in the top marginal tax bracket, is interested in purchasing, with some of his friends, a franchise in a fast-growing company. After carefully reviewing the proposal, you have determined that apart from a large up-front investment, the business will not need to retain income and the income in future years will be paid out to the owners. Your client wants to be assured that the business would not be disrupted if one of his partners lost interest or encountered personal financial reversals. What form of business makes the most sense for him?

A. Limited partnership
B. General partnership
C. C-corportaion
D. Professional corporation
E. S-corporation.

Purchase this Solution
Solution Summary

Tutorial is 385 words, including computations to show you how and why each response is selected. No references.

Solution Preview

Please see the attached file.

Ques.If a client's primary goal in making lifetime gifts to his children is to lower his estate taxes he should make gifts of property that
A. Are expected to depreciate significantly in the future
B. Are expected to appreciate significantly in the future
C. Have already depreciated significantly
D. Have already appreciated significantly
Answer: Option B is correct.The asset whose value is expected to appreciate significantly will Increase the estate tax liability of client. The property whose value has already been increased Will be taxable in the hands of client irrespective of making gift to his children. Depreciation in value of asset do not have any increasing effect on tax liability of client.

Ques.Someone received a bequest of 100 shares of stock from a relative who died on March 1 of this year. The relative bought the stock at a total cost of $5,500. The value of the 100 shares of stock was $5,750 on March 1. Its value rose to $6,250 on July 1 of this year, on which day the individual sold it for $6,250, incurring ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Motivation

This tests some key elements of major motivation theories.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

View More Free Quizzes
Related BrainMass Solutions

  • Audit: 25 T-F plus an audit program for cash

    The requirements to become a CPA are different in each state even though the exam is uniform. 12. An auditor in a big firm must be registered with the IRS in order to practice. 13.

  • Five categories of certifed healthcare professionals

    In oder to become certified practioners need to pass a written exam, an oral exam and a clinical evalauation administered by the American Board of General Practice.

  • Ten Notary Signing Agent Example Exam Questions

    636751 Ten Notary Signing Agent Example Exam Questions Ten important questions for the "Notary Signing Agent Certification Exam" with information provided by the official Certified Signing Specialist Code of Conduct. 1) Does a notary agent regularly

  • Requirements for PMP Exam

    I hope this answers your questions. I'm a certified Project Management Professional (PMP), member of the Project Management Institute, and hold a graduate degree in Project Management.

  • Discuss how globalization has changed the role of a certifie

    In addition, professional exams for accountants, including the CPA exam and the enrolled agent exam, will both have to be completely revised.

  • This addresses applying course concepts & enterting as a CPA

    This solution discusses the following two questions: Discuss how the concepts of this course can be applied to your current or future work position; Discuss whether or not you feel adequately prepared to enter the accounting profession as a Certified

  • Accounting Regulatory Bodies

    The AICPA oversees the testing and entry requirements for Certified Public Accountants through being active in the test question generation of the Uniform Certified Public Accountant's Exam.

  • Certified Fraud Examiner (CFE) Roles and Responsibilities

    The Certified Fraud Examiner is trained for a broader scope of fields. A certified fraud examiners role and responsibilities are provided. Appropriate schooling for passing a qualifying exam is determined.

  • How do you formulate this as a goal programming problem

    472181 How do you formulate this as a goal programming problem Mick Garcia, a certified financial planner (CFP) has been asked by a client to invest $250,000. This money may be placed in stocks, bonds, or a mutual fund in real estate.

View More Related Solutions