Chapter 3 - Controlled Groups and Affiliated Service Groups

Pregunta 1 de 19

1

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

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 2 de 19

1

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

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 3 de 19

1

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

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 6 de 19

1

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

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 8 de 19

1

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

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

VERDADERO
FALSO

Explicación

Pregunta 12 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 13 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 14 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 15 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 16 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 17 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 18 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 19 de 19

1

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

Selecciona una de las siguientes respuestas posibles:

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

	Creado por Justin Guy (just hace más de 8 años

DC3 DC3 Test sobre Chapter 3 - Controlled Groups and Affiliated Service Groups, creado por Justin Guy (just el 21/10/2015.

Chapter 3 - Controlled Groups and Affiliated Service Groups

Pregunta 1 de 19

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

Selecciona uno de los siguientes:

Explicación

Pregunta 2 de 19

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

Selecciona uno de los siguientes:

Explicación

Pregunta 3 de 19

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

Selecciona uno de los siguientes:

Explicación

Pregunta 4 de 19

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

Selecciona uno de los siguientes:

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

Explicación

Pregunta 6 de 19

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

Selecciona uno de los siguientes:

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

Explicación

Pregunta 8 de 19

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

Selecciona uno de los siguientes:

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

Explicación

Pregunta 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.

Selecciona uno de los siguientes:

Explicación

Pregunta 12 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 13 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 14 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 15 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 16 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 17 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 18 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 19 de 19

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

Selecciona una de las siguientes respuestas posibles:

Explicación

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