Chapter 3 - Controlled Groups and Affiliated Service Groups

Questão 1 de 19

1

A parent-subsidiary controlled group exists if the companies are connected through at least 50 percent stock ownership.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 2 de 19

1

A brother-sister controlled group exists if either the common ownership or the effective control test is satisfied.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 3 de 19

1

Attribution between spouses does not apply if the couple is childless.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 4 de 19

1

Attribution from a parent to a minor child applies only if the parent owns more than 50 percent of the business.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 5 de 19

1

Company A and Company B are a controlled group. The workforces of both companies are considered when testing each company’s plan for coverage requirements.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 6 de 19

1

A financial institution is considered a service organization because it provides a service of lending money.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 7 de 19

1

In order for an A-Org group to exist, the A-Organization must have at least a 10 percent ownership interest in the FSO.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 8 de 19

1

If an FSO is a corporation, it always must be a professional service corporation for affiliated service group rules.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 9 de 19

1

If two or more entities are deemed to be an affiliated service group, they do not need to be tested together for top-heavy purposes as long as each is not top-heavy on its own.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 10 de 19

1

If two or more entities are deemed to be an affiliated service group and each entity sponsors its own plan, each plan must pass coverage.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 11 de 19

1

For purposes of determining any type of affiliated service group, ownership is attributed from a grandchild to a grandparent, but not from a grandparent to a grandchild.

Selecione uma das opções:

VERDADEIRO
FALSO

Explicação

Questão 12 de 19

1

Based on the following information, determine brother-sister controlled group status:
• The individuals listed are not related.

Selecione uma das seguintes:

A. None
B. W and X only
C. W and Y only
D. X and Y only
E. W and X, X and Y only

Explicação

Questão 13 de 19

1

All of the following conditions are necessary to avoid spousal attribution for controlled group purposes, EXCEPT:

Selecione uma das seguintes:

A. The spouse must not have any direct ownership in the business.
B. The spouse must not be a director or employee of the business.
C. The spouse must not participate in the management of the business.
D. The spouse must not inherit the business upon death of the business owner.
E. No more than 50 percent of the business’ gross income may be derived from passive investments.

Explicação

Questão 14 de 19

1

All of the following statements regarding attribution for controlled group purposes are TRUE, EXCEPT:

Selecione uma das seguintes:

A. Ownership is attributed from husband to wife unless the business is wholly owned by the husband and certain requirements are met.
B. Ownership is attributed from a minor child to a parent.
C. Ownership is attributed from an adult child to a parent if the parent owns more than 50 percent of the corporation.
D. Ownership is attributed from a grandparent to a grandchild if the grandchild owns more than 50 percent of the corporation.
E. Ownership is attributed from a father-in-law to a son-in-law.

Explicação

Questão 15 de 19

1

All of the following IRC sections consider controlled group members as a single employer, EXCEPT:

Selecione uma das seguintes:

A. Eligibility and coverage (IRC §410)
B. Deduction (IRC §404)
C. Top-heavy (IRC §416)
D. Vesting (IRC §411)
E. Annual additions (IRC §415)

Explicação

Questão 16 de 19

1

All of the following statements regarding affiliated service groups are TRUE, EXCEPT:

Selecione uma das seguintes:

A. An FSO can be part of both an A-Org group and a B-Org group.
B. An FSO of an A-Org group must be a professional service organization.
C. An A-Organization must be a service organization.
D. A B-Organization need not be a service organization.
E. An A-Organization must have some ownership in the FSO.

Explicação

Questão 17 de 19

1

All of the following are effects of being an affiliated service group, EXCEPT:

Selecione uma das seguintes:

A. An employee’s service with all group members is credited when determining plan eligibility.
B. Plans must satisfy coverage requirements considering all employees in the affiliated service group.
C. HCE status is determined by looking at the ownership in each entity separately.
D. Annual additions for all plans in the group are aggregated to determine if the IRC §415 limits have been exceeded.
E. An employee’s service with all group members is credited when determining
vesting percentages.

Explicação

Questão 18 de 19

1

All of the following statements regarding attribution in determining affiliated service groups are TRUE, EXCEPT:

Selecione uma das seguintes:

A. Ownership interest is attributed between spouses.
B. Ownership interest is attributed from parent to adult child only if the parent owns more than 50 percent of the company.
C. Ownership interest is not attributed between siblings.
D. Ownership interest is attributed from grandchild to grandparent.
E. Ownership interest is not attributed from grandparent to grandchild.

Explicação

Questão 19 de 19

1

All of the following activities would be considered management functions, EXCEPT:

Selecione uma das seguintes:

A. Supervisory roles
B. Hiring employees
C. Investing 401(k) plan assets
D. Setting employee compensation
E. Business planning

	Criado por Justin Guy (just mais de 8 anos atrás

DC3 DC3 Quiz sobre Chapter 3 - Controlled Groups and Affiliated Service Groups, criado por Justin Guy (just em 21-10-2015.

Chapter 3 - Controlled Groups and Affiliated Service Groups

Chapter 3 - Controlled Groups and Affiliated Service Groups

Questão 1 de 19

A parent-subsidiary controlled group exists if the companies are connected through at least 50 percent stock ownership.

Selecione uma das opções:

Explicação

Questão 2 de 19

A brother-sister controlled group exists if either the common ownership or the effective control test is satisfied.

Selecione uma das opções:

Explicação

Questão 3 de 19

Attribution between spouses does not apply if the couple is childless.

Selecione uma das opções:

Explicação

Questão 4 de 19

Attribution from a parent to a minor child applies only if the parent owns more than 50 percent of the business.

Selecione uma das opções:

Explicação

Questão 5 de 19

Company A and Company B are a controlled group. The workforces of both companies are considered when testing each company’s plan for coverage requirements.

Selecione uma das opções:

Explicação

Questão 6 de 19

A financial institution is considered a service organization because it provides a service of lending money.

Selecione uma das opções:

Explicação

Questão 7 de 19

In order for an A-Org group to exist, the A-Organization must have at least a 10 percent ownership interest in the FSO.

Selecione uma das opções:

Explicação

Questão 8 de 19

If an FSO is a corporation, it always must be a professional service corporation for affiliated service group rules.

Selecione uma das opções:

Explicação

Questão 9 de 19

If two or more entities are deemed to be an affiliated service group, they do not need to be tested together for top-heavy purposes as long as each is not top-heavy on its own.

Selecione uma das opções:

Explicação

Questão 10 de 19

If two or more entities are deemed to be an affiliated service group and each entity sponsors its own plan, each plan must pass coverage.

Selecione uma das opções:

Explicação

Questão 11 de 19

For purposes of determining any type of affiliated service group, ownership is attributed from a grandchild to a grandparent, but not from a grandparent to a grandchild.

Selecione uma das opções:

Explicação

Questão 12 de 19

Based on the following information, determine brother-sister controlled group status: • The individuals listed are not related.

Selecione uma das seguintes:

Explicação

Questão 13 de 19

All of the following conditions are necessary to avoid spousal attribution for controlled group purposes, EXCEPT:

Selecione uma das seguintes:

Explicação

Questão 14 de 19

All of the following statements regarding attribution for controlled group purposes are TRUE, EXCEPT:

Selecione uma das seguintes:

Explicação

Questão 15 de 19

All of the following IRC sections consider controlled group members as a single employer, EXCEPT:

Selecione uma das seguintes:

Explicação

Questão 16 de 19

All of the following statements regarding affiliated service groups are TRUE, EXCEPT:

Selecione uma das seguintes:

Explicação

Questão 17 de 19

All of the following are effects of being an affiliated service group, EXCEPT:

Selecione uma das seguintes:

Explicação

Questão 18 de 19

All of the following statements regarding attribution in determining affiliated service groups are TRUE, EXCEPT:

Selecione uma das seguintes:

Explicação

Questão 19 de 19

All of the following activities would be considered management functions, EXCEPT:

Selecione uma das seguintes:

Explicação

Based on the following information, determine brother-sister controlled group status:
• The individuals listed are not related.