53.JohnestablishedaRothIRAatage25andcontributedatotalof$131,244toitover38years.

Theaccountisnow worth$376,000.HowmuchofthesefundscanJohnwithdrawtax-free?

a.$0

b.$131,244

c.$244,756

d.$376,000

e.Noneofthese

54.WhichofthefollowingsisnotacharacteristicofaKeoghplan?

a.Establishesatrust.

b.Consideredtobeaqualifiedplan.

c.Contributiontoplanbyextensionduedate.

d.Favorable10-yearforwardaveragingisnotavailable.

e.Allofthesearecharacteristics.

55. Dayton,anexecutiveatGold,Inc.,receivesa$600,000paymentunderagoldenparachuteagreement.Dayton'sbase amountfromGold,Inc.,is$140,000.WhatisthetotaltaxDaytonmustpay,assuming

a37%individualtaxrate?

a.$0

b.$92,000

c.$222,000

d.$314,000

e.Noneofthese

56.Thespecial83(b)election(i.e.,whereincomeistaxedintheyearofthegrant)withrespecttoa

restrictedstock planmaybeadvantageousinwhichofthefollowingsituations?

a.Theemployerisanunstablecompany.

b.Thebargainelementisrelativelysmall. c.Aminimumamountofappreciationisexpectedinthefuture. d.Therestrictionprobablywillnotbesatisfied.

e.Noneofthese.

58.Ifthespecialelectionunder83(b)ismadeasaresultofarestrictedpropertytransaction,whichstatementisfalse?

a.Afactorsupportingmakingthe83(b)electionistheexpectationthepropertywillappreciatesubstantially.

b.OrdinaryincomeisrecognizedontheexcessoftheFMVovertheamountpaidforthepropertyon thedate received.

c.Anyappreciationonthepropertyafterreceiptistreatedascapitalgain.

d.Adeductionisallowedtotheemployeeforanytaxespaidontheoriginalamountincludedingross incomeifthe propertyissubsequentlyforfeited.

e.Noneoftheseisfalse.

60.Whichwouldnotbeconsideredanadvantageofanonqualifiedstockoptionplanoveran

incentivestockoption(ISO) plan?

a.Grantedatanyprice.

b.Mayhaveanyduration.

c.Spreadsubjecttoalternativeminimumtax.

d.Governedby83.

e.Allofthese.