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NEW QUESTION: 1
The Turnover Corporation, a firm with 25,000 employees, has recently hired 50 new employees, many of whom have been hired to replace middle-level managers who have retired. Turnover has omitted this fact from its prospectus. Turnover is guilty of
A. misusing insider information.
B. fraud.
C. misrepresentation.
D. nothing. The hiring of 50 new employees by a firm with 25,000 employees is not a material fact.
Answer: D
Explanation:
Explanation/Reference:
Explanation: Turnover is guilty of nothing when it hires 50 new employees, but doesn't include this information in its prospectus because this is not a material fact. Most of the employees have been hired to replace middle-level managers who have retired, and these employees wouldn't be considered significant enough to affect the price of the stock in any way. If Turnover had hired a new CEO, that would be a material fact that must be disclosed.
NEW QUESTION: 2
A. SMTP
B. POP3
C. JMS
D. IMAP4
Answer: A,D
NEW QUESTION: 3
Which one of the following statements is correct with regard to an individual taxpayer who has elected to
amortize the premium on a bond that yields taxable interest?
A. The bond's basis is increased by the amortization.
B. The bond's basis is reduced by the amortization.
C. The amortization is treated as an itemized deduction.
D. The amortization is not treated as a reduction of taxable income.
Answer: B
Explanation:
Explanation
Choice "c" is correct. The bond's basis is reduced by the amortization of the premium.
Choice "a" is incorrect. For bonds acquired after 12/31/87, the amortization of the premium is an offset to
interest income on the bond rather than a separate interest deduction.
Choice "b" is incorrect. The amortization of the premium will reduce taxable income.
Choice "d" is incorrect. The bond's basis will be decreased by the amortization.