USCPA-NOW Comprehensive IQEX Program 2024/2025

Course Introduction
Introduction to Business Law
Section 1 Contracts
17 Topics | 1 Quiz
Introduction to Contracts Copy
1.1.1 Types of Contracts Copy
1.2.2 Essential Elements of a Contract Copy
1.2.3 Offers Copy
1.2.4 Counteroffers Copy
1.2.5 Acceptance Copy
1.2.6 Consideration Copy
1.2.7 Promissory Estoppel Copy
1.2.8 Legal Capacity to Contract Copy
1.2.9 Legality of Purpose Copy
1.3 How Contracts May Be Voided Copy
1.4 The Statute of Frauds Copy
1.5 The Parol Evidence Rule Copy
1.6 Assignment of Contracts/Delegation Copy
1.7 The Doctrine of Substantial Performance Copy
1.8 Remedies for Breach of Contract Copy
Section 1 Quiz Copy
Section 1 Complete Copy
A note on Section 2 (No longer tested)
A note on Section 3 (No longer tested)
Section 4 Bankruptcy
9 Topics | 1 Quiz
Introduction to Bankruptcy
4.1 Chapter 7 Voluntary Bankruptcy Petitions
4.2 Chapter 7 Involuntary Bankruptcy Petitions
4.3 Bankruptcy Proceedings/Role of Trustee/Preferential Transfers
4.4 Priority of Claims
4.5 Discharge of a Bankrupt
4.6 Debts not Discharged by Bankruptcy
4.7 Business Reorganizations under Chapter 11
Section 4 Quiz
Section 4 Complete
Section 5 Debtor-Creditor Relationships
8 Topics | 1 Quiz
Introduction to Debtor-Creditor Relationships
5.1 Most Common Kinds of Liens
5.2 Nature of Suretyship and Guaranty
5.3. Creditor’s Rights and Remedies
5.4 Surety’s and Guarantor’s Rights and Remedies
5.5 Surety’s and Guarantor’s Defenses
5.6 Cosureties
Section 5 Quiz
Section 5 Complete
Section 6 Agency
6 Topics | 1 Quiz
Introduction to Agency
6.1 Characteristics of an Agency Agreement
6.2 Authority/Capacity of Principals and Agents
6.3 Obligations and Rights of Principals and Agents
6.4 Termination of an Agency Relationship
Section 6 Quiz
Section 6 Complete
Section 7 Regulation of Employment
9 Topics | 1 Quiz
Introduction to Regulation of Employment
7.1 Independent Contractor (Self-Employed) or Employee?
7.2 Federal Insurance Contributions Act (FICA)
7.3 Federal Unemployment Tax Act (FUTA)
7.4 Workers’ Compensation Act
7.5 The Affordable Care Act
7.6 Qualified Healthcare Plans
7.7 Bribery of Foreign Government Officials
Section 7 Quiz
Section 7 Complete Copy
Section 8 Business Structure
13 Topics | 1 Quiz
Introduction to Business Structure
8.1 Characteristics of a Partnership
8.2 The Rights, Duties, and Liabilities of a Partner
8.3 Limited Partnerships and Joint Ventures
8.4 Limited Liability Companies (LLC)
8.5 Limited Liability Partnerships (LLP)
8.6 The Characteristics of a Corporation/Advantages and Disadvantages
8.7 Corporate Financial Structure/Powers and Liabilities of a Corporation
8.8. The Rights and Responsibilities of Directors, Officers and Stockholders
8.9 Changes in Corporate Structure (Mergers and Consolidations)/Dissolution
8.10 Subchapter S Corporations
Notes on Section 8 Business Structure Questions
Section 8 Quiz
Section 8 Complete
Introduction to Ethics
Section 9 Professional and Legal Responsibilities
9 Topics | 1 Quiz
Introduction to Professional and Legal Responsibilities
9.1 Licensing and Disciplinary Systems
9.2 Accountant’s Legal Liabilities
9.3 Responsibilities of Tax Return Preparers
9.4 Audits, Appeals and Judicial Process
9.5 Treasury Department Circular 230
9.6 U.S. Federal Tax Law Hierarchy Quick Reference Chart
9.7 Reporting foreign bank accounts
Section 9 Quiz
Section 9 Complete
Introduction to Federal Taxation
Section 10 Individual Taxation
45 Topics | 1 Quiz
Individual Taxation – Introduction And Personal Tax Return Forms
10.1.1 Filing Status and Dependents-an overview
10.2.1 Major Components of Gross Income and Exclusions
10.2.2 Employment Income
10.2.3 Employment Benefits
10.2.4 Incentive Stock Options
10.2.5 Interest
10.2.6 Dividends
10.2.7 Taxable Refund
10.2.8 Alimony
10.2.9 Business income (See Schedule C)
10.2.10 Business expenses
10.2.11 Depreciation – (Very Important for IQEX)
10.2.12 The Section 179 Deduction (Very important for IQEX)
10.2.13 Bonus Depreciation
10.2.14 Other Deductions
10.2.15 Capital gains and losses
10.2.16 Rental Income
10.2.17 Rental Losses
10.2.18 Suspended Losses
10.2.19 Unemployment Compensation and Social Security Benefits
10.2.20 Other income
10.2.21 Exclusions
10.3.1 Introduction to Adjusted Gross Income
10.3.2 Interest on education loans and tuition fees
10.3.3 The “Pass-Through” Rules for Business Income Earned by Taxpayers Other Than Corporations (Section 199A)
10.4.1 Deductions in Arriving at Taxable Income including Itemized Deductions and Exemptions
10.4.2 Medical and Dental Expenses
10.4.3 Taxes Paid
10.4.4 Interest Paid
10.4.5 Charitable Contributions
10.4.6 Personal Casualty and Theft Losses
10.4.7 Job Expenses and Certain Miscellaneous Deductions
10.4.8 Exemptions
10.5.1 Filing Status and Calculation of Tax
10.6.2 Tax Credits
10.6.21 The Child Tax Credit
10.7.1 Estimated Tax Payments (Instalments)
10.7.2 Filing Requirements
10.7.3 Penalties
10.7.4 IRS Assessments/Audit and Appeal Procedures
10.7.5 Claims for Refunds
10.7.6 Procedural Matters
Section 10 Simulations
Section 10 All Questions
Section 10 Complete
Section 11 Corporate Taxation
20 Topics | 1 Quiz
Corporate Taxation Introduction
11.1 Filing and Payment of Tax
11.2.1 Income and Deductions/ Amortization of Intangibles/Intercorporate Dividends/Losses
11.2.2 Amortization of Intangibles
11.2.3 Intercorporate Dividends (VERY IMPORTANT!!!)
11.3 Reconciliation Between Accounting Income and Taxable Income
11.4 Permanent and Temporary Timing Differences Between Book Income and Taxable Income for Partnerships and Corporations
11.5.1 Transfers of Property to and from Corporations
11.5.2 Transfer of property from a corporation to an individual
11.6 Affiliated and Controlled Corporations/Consolidated Tax Returns
11.7 Dividend Distributions
11.8.1 Stock Redemptions and Liquidations
11.8.2 Liquidation of a subsidiary
11.9 State and Local Tax Issues
11.10.1 S Corporations Part I
11.10.2 S Corporations Part II
11.11 Corporate Reorganizations
11.12 Losses on Small Business Corporation Stock
Section 11 Simulations
Section 11 All Questions
Section 11 Complete
Section 12 Partnership Taxation
14 Topics | 1 Quiz
Introduction
12.1 Types of Partnerships
12.2 Transfers of Property to a Partnership
12.3 Partnership Interests Acquired in Exchange for Services*
12.4 Partnership Income and Losses/Guaranteed Payments to Partners
12.5 Calculation of a Partner’s Basis in a Partnership
12.6 Transactions with Controlled Partnerships*
12.7 Partnership Year-End Selection*
12.8 Termination or Continuation of a Partnership*
12.9 Sale of a Partnership Interest
12.10 Non-Liquidating (Current) and Liquidating Distributions from a Partnership*
12.11 Tax Classification Options for Limited Liability Companies (LLCs)
Section 12 Simulations
Section 12 Quiz
Section 12 Complete
Section 13 Transactions in Property
13 Topics | 1 Quiz
Introduction
13.1 Capital Gains and Losses
13.2 Special Rules for the Computation of Basis
13.3 Like Kind Exchanges of Investment Property*
13.4 Involuntary Conversions*
13.5 Sale of a Principal Residence
13.6 Sales of Securities/ Wash Sales/Worthless Securities / Virtual Currency Transactions/ Conversion of Property from Personal Use to Business Use
13.7 Transactions Between Spouses and Related Taxpayers**
13.8 Short-Term and Long-Term Gains, Losses and Carryovers
13.9 Gains and Losses on Business Property (Sections 1231, 1245 and 1250)*
13.10 Ideas to Absorb Net Operating Losses (NOL) or Capital Loss Carryforwards of a C Corporation*
Section 13 Simulations
Section 13 Quiz
Section 13 Complete
Section 14 Exempt Organizations and Other Taxation Topics
6 Topics | 1 Quiz
Section 14 Introduction
14.1 Exempt Organizations (Section 501 (c) (3) Requirements)
14.2 Multijurisdictional Taxation
14.3 International Taxation (Foreign Branches vs. Foreign Subsidiaries)
14.4 Federal Tax Legislative Process
14.5 Structure of the Internal Revenue Code
Section 14 Quiz
Section 15 Some Observations on the Revised IQEX Testing Methodology and a Summary of Simulation Parameters
APPENDIX Joining a State Board
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1.3 How Contracts May Be Voided Copy

USCPA-NOW Comprehensive IQEX Program 2024/2025 Section 1 Contracts 1.3 How Contracts May Be Voided Copy

Several circumstances can negate what might otherwise constitute a valid contract.

Fraud

By definition, fraud means misrepresentation of a material fact or concealment of a significant defect.  Fraud also includes a falsified appraisal by an expert but does not include a non-expert’s opinion. Examples of fraud include the rollback of an automobile’s odometer prior to sale or an altered appraisal of a diamond ring. On the other hand, if you are looking to buy a 1965 Mustang and the owner tells you that he predicts its value will double within five years, this does not constitute fraud.

 

To prevail in a suit to have a contract set aside on account of fraud, the plaintiff must prove three things:

1. There was intent to mislead. The term that reappears often in this business law course and on the IQEX Exam is “scienter” which a Latin word denoting intent to mislead is and or reckless disregard for the truth.
2. Reasonable reliance by the plaintiff (i.e. the injured party).
3. Injury resulted (in a financial sense).

Fraud may occur in the inducement to enter into a contract during negotiations or in the execution of the contract.  An example of the former is a representation that a car has only been driven 10,000 km whereas the actual distance is 50,000. An example of the latter is a lawyer representing to a client that the client is signing a will, while, in reality, the document is a promissory note in favour of the lawyer.

 

Remedies for fraud include rescission (voiding) the contract or a reduction in compensation (e.g. a price reduction to compensate for the inaccuracy of a car’s odometer).

 

Innocent misrepresentation may give rise to the same resolution, but damages would not likely be awarded.

Please answer the question below and review your answer.

Duress

Duress means threats of violence or extreme pressure against a party or a family member.  It may involve social or economic coercion. Extreme duress causes an agreement to be void while ordinary duress creates a voidable agreement.

Undue Influence

Undue influence occurs when a dominant person (parent, employer, advisor) persuades a weaker person to enter into a contract to the latter’s detriment.

A good example is a situation where an individual is hired to work in a remote area and is required to sign a lease for company housing. If the individual quits or is fired, he or she would probably use the undue influence argument to void the lease.

Please answer the question below and review your answer.

Note that option b refers to a term that does not appear in these notes.  Generally, this means you can reject it as a choice.

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