CDFA Exam -with 100% verified solutions 2024-2025, Exams of Nursing

Download CDFA Exam -with 100% verified solutions 2024-2025 and more Exams Nursing in PDF only on Docsity! CDFA Exam -with 100% verified solutions 2024- 2025 5-year cliff vesting An employee who has at least five years of service must have a non- forfeitable right to 100% of the employee's accrued benefit [IRC §411(a) (2)(A)]. 3- to 7-year vesting (7-year graded vesting) An employee who has completed at least three years of service must have a non-forfeitable right to at least the following percentages of his or her accrued benefit: 20% after three years of service, 40% after four years of service, 60% after five years of service, 80% after six years of service, and 100% after seven years of service [IRC §411(a)(2)(B)]. Top-heavy plans or matching contributions typically use _________ vesting 3-year cliff vesting or 6-year graded vesting. Schedule A: Itemized Deductions Schedule ____ may help identify unlisted assets or sources of income. For example, property taxes may reveal real property or a boat that one spouse does not know exists; and gambling losses would reveal that there are gambling winnings. Schedule B: Interest and Ordinary Dividends Schedule ____ identifies the assets and investments generating interest and dividends. Schedule C: Profit or Loss from Business Schedule ___ may be a place to hide assets or income. For example, depreciation expense is not a cash outflow and should sometimes be added back to net income to determine actual income. The depreciation schedule may also reveal additional assets in the business. Schedule D: Capital Gains and Losses Schedule _______ is used to report gains and losses from the sale of stocks, bonds, and real estate. Schedule E: Supplemental Income and Loss Schedule _____ is used to report income from rental properties, royalties, partnerships, and S-corporation income. Depreciation would be something to review. Form 1065 Form _________ is used to report partnership income. Form 1120 Form __________ is used to report corporate income Form 1120S Form ___________ is used to report corporate income for S corporations. Schedule 1: Additional Income and Adjustments to Income Schedule ____________________ includes additional income, such as capital gains, unemployment compensation, prize or award money, and gambling winnings. It also includes deductions such as student loan interest, self- employment tax, and educator expenses. Schedule 2 Tax Schedule _________ details the alternative minimum tax (ATM) or an excess advance premium tax credit repayment. _________________ is submitting a disputed matter for decision to a person who is not a judge. The decision of an arbitrator is usually binding and final. Arbitration varies greatly from mediation. Best Interest of the Child _____________________________ is a discretionary legal standard used by judges when making decisions about custody, visitation, and support for a child when the parents are divorcing. Change of Venue A ______________________ is a change of judges or geographical location, requested by a party to the action who feels that the change is justified by state law. Collaborative Divorce A ____________________________ is a team approach to divorce in which divorcing couples obtain professional help from specialists in the legal, financial, and mental health fields; when needed, additional professionals (including child/parenting experts) may be called in to help the couple settle their case. Collaborative Law _____________________________ is a new dispute resolution model in which each party retains their own attorney who has gone through specialized "___________________________" training. The lawyer's only job is to help settle the dispute. All parties agree to work together respectfully, honestly, and in good faith to try to find "win-win" solutions to the legitimate needs of both parties. No one may go to court, or even threaten to do so. If that should occur, the ___________________________ process terminates and both lawyers are disqualified from any further involvement in the case. Collusion ________________ is an agreement between two or more persons where one of the parties brings false charges against the other. In a divorce case, the husband and wife may agree to use adultery as a ground in order to obtain divorce more quickly, knowing full well that adultery was not committed. _________________ is illegal. Common Law Marriage __________________________ is a judicially-recognized marriage in some states, usually based on cohabitation where no formal marriage ceremony has taken place. Complainant ____________________ is the one who files the suit; same as plaintiff. Complaint ___________________ is a legal document led by the plaintiff to start the divorce process. It states that the marriage has ended and lists the grounds and claims for the divorce. In some states it is also known as a petition. Condonation ____________________ is the act of forgiving one's spouse who has committed an act of wrongdoing that would constitute grounds for divorce. _____________ generally is proven by living and cohabitating with the spouse after learning that the wrongdoing was committed. It is often used as a defense to a divorce. Contempt of Court _________________________ is the willful failure to comply with a court order, judgment, or decree by a party to the actions. ________________________ may be punishable by fine or imprisonment. Contested Divorce __________________________ any case where the judge must decide one or more issues that are not agreed to by the parties. All cases are considered _____________________ until all issues have been agreed to. Corroborative Witness __________________________ is a person who testifies for one of the parties and backs up their story. Court Order __________________________ is a written instruction from the court carrying the weight of law. ___________________ must be in writing. Anyone who knowingly violates a ____________________ can be held in contempt of court. Cross-Examination _____________________ is the questioning of a witness presented by the opposing party on trial or at a deposition. The purpose is to test the truth of that testimony. Curriculum Vitae ___________________ is the proof presented at a hearing, including testimony, documents, or objects. Exhibits _____________ are the tangible things presented at trial as evidence. Expert Witness In court proceedings, the ________________________ is the professional whose testimony helps a judge reach a decision. File/Filing ______________________ is to place a document in the official custody of some public official. Every case brought to court must be led with the court clerk in order for the court to take action upon the case. A case is led when a party (plaintiff) writes a written complaint and brings it to the clerk, who files it. The plaintiff must also serve the opposing party with a copy of the complaint. Grounds for Divorce ________________________ are the reasons for seeking a divorce, such as incompatibility, mental cruelty, physical abuse, or adultery. While some states allow fault ________________________, all states have some form of no-fault divorce. Guardian-ad-Litem ____________________________ is a person appointed by a judge to prosecute or defend a case for a person legally unable to do so, such as a minor child. Hearing ______________ is any proceeding before a judicial officer. Hearsay __________________ is an out-of-court statement offered to prove the truth of the matter asserted. Generally speaking, __________________ cannot be used at trial, but there are exceptions that permit it to be admitted to court. Incompatibility __________________ is the inability of persons to get along; a ground for divorce. Interest-Based Bargaining ___________________________ is a method of negotiation used in mediation. It starts with each party educating the other party about their interests. Ideally, the parties will work together until they find solutions that allow both parties to meet their needs. Interrogatories _______________________ is a series of written questions served upon the opposing party in order to discover certain facts regarding the disputed issues in a matrimonial proceeding. Judgment ___________________ is the order of the court on a disputed issue; same as decree. Jurisdiction ______________________ is the power of the court to rule upon issues relating to the parties, their children, or their property. Legal Separation ____________________________ is the court ruling on division of property, spousal support, and responsibility to children when a couple wishes to separate but not divorce. A ________________________ is most often desired for religious or medical reasons. A decree of legal separation does not dissolve the marriage and does not allow the parties to remarry. Texas does not recognize _____________________________. Limited Divorce ___________________________ establishes certain legal responsibilities while the parties are separated but does not end the marriage. Also referred to as legal separation. Litigation ___________________ is the process by which a civil case settles parties' rights. Mediation ___________________ is a non-adversarial process in which a husband and wife are assisted in reaching their own terms of divorce by a neutral third Privilege ____________________ is the right of a spouse to make admissions to an attorney, clergyman, psychiatrist, or others as designated by state law that are not later admissible as evidence. Pro Se Divorce _____________________ is a divorce wherein the divorcing partners represent themselves in court (with or without a mutually agreeable separation agreement) without the assistance of attorneys. _____________ is Latin for Proper Person. Rebuttal _______________ is the introduction of evidence at a trial that is in response to new material raised by the defendant at an earlier stage of the trial. Reconciliation _____________________ is when parties decide to get back together. They may sign a _____________________ agreement, which is enforceable by the court. Respondent ___________________ is the party defending against a divorce petition (complaint). (See also "Defendant.") Restraining Order __________________________ is a court order prohibiting a party from certain activities. Issued in response to a motion. ________________________ are often issued to protect against domestic violence or to protect marital assets. In many states, violating a "domestic restraining order" is a criminal offense. Retainer _______________ is money paid by the client to the lawyer or expert witness to obtain a commitment from the lawyer or expert witness to handle the client's case. A ______________ can be a deposit against which the lawyer or expert witness charges fees as they are earned. Rules of Evidence ________________________ are the rules that govern the method of presentation and admissibility of oral and documentary evidence at court hearings or depositions. Separation The court grants a legal _______________. It grants the parties a partial divorce. They must live apart, but the marriage is not dissolved until a divorce is granted. Separation Agreement A ________________________ is the legal document listing provisions for peace between divorcing couples, division of property, spousal support, and responsibility for children of the marriage. The couple's agreement or court-ordered terms are part of the divorce decree. Service _______________ is providing a copy of the papers being led to the opposing party. Settlement Agreement A _________________________ is a written contract dividing property, spelling out rights and obligations, and settling issues such as spousal and child support and custody. Stipulation __________________ is an agreement between the parties or their counsel, usually related to matters of procedure. Subpoena A __________________ is a court order requiring a person's appearance in court or at a deposition as a witness or to present documents or other evidence for a case. Summons A ________________ is a written notification to the defendant or respondent that an action has been led against him or her. It notifies a spouse of his/her rights and obligations in responding to the Complaint for Divorce. Temporary Orders _______________________ are orders granting relief between the ling of the lawsuit and the judgment. Temporary orders are automatic in some states. They are also called Pendente Lite Orders. Appraisal ______________________ is the procedure for determining the fair market value of an asset when it is to be sold or divided as part of the divorce process. Career Assets ______________________ are tied to one's career (e.g., health insurance, stock options, retirement plans, etc.) Community Property In ___________________ states, any property not deemed "separate" (i.e., owned before the marriage or obtained by gift or inheritance) is "community" property and will likely be subject to a 50/50 division. Equitable ___________________ means fair; does not necessarily mean equal. Equitable Division of Property ____________________________ is a method of dividing property based on a number of considerations (such as length of marriage, differences in age, wealth, earning potential, and health of partners involved) to achieve an equitable and fair distribution—not necessarily an equal one. Goodwill ___________________ is the value of a business beyond its sales revenue, inventory, and other tangible assets: including prestige, name recognition, and customer loyalty. Joint Property ________________________ is the property held in the name of more than one person. Lis Pendens __________________ means a piece of property cannot be transferred during a pending lawsuit that may change the disposition of it once a notice has been led in the public record. Marital Property _____________________________ is accumulated income and property acquired by the spouses during the marriage subject to equitable division by the court. States will vary on their precise definition of what is to be included in marital property, sometimes excepting property acquired by gift or inheritance. Property Settlement Note _________________________________ is a note from the payor to the payee for an agreed-upon length of time with a reasonable interest rate. Can be collateralized. Recapture ________________ is deductions taken in a previous year's income. Section 1041 This section of the IRS Code states that any transfer of property between spouses during marriage (or former spouses if it is incident to divorce) is tax-free. No gain or loss is recognized and for income tax purposes, the transferee's basis and holding period in the property is the adjusted basis and holding period of the transferor. An assignment of an annuity contract is non-taxable for both the transferor spouse and the transferee spouse under this section. Separate Property Generally considered any property owned before marriage (earned or acquired by gift or inheritance), acquired during the marriage by one partner using only that partner's separate property, or earned after a formalized agreement. This definition will vary from state to state. Tax Reform Act of 1984 Tax Reform Act of 1984 (TRA) added Code Sec. 1041, which allows marital property to be transferred back and forth between spouses without creating any tax on the transfer. The income tax basis of each asset is the basis of the asset in the hands of the transferor. TRA simplified the definition of spousal support, and it prevents property settlements from being disguised as spousal support. Deferred Division or Future Share Method One of three methods that can be used to divide pension benefits. No present value is determined. Each spouse is awarded a share of the benefits if and when they are paid. Defined Benet Plan Type of employer-sponsored pension plan that promises to pay the employee a certain amount per month at retirement time. It does not have a cash value today. Capital Gain A profit from the sale of a property or investment. Cost Basis The original value of an asset for tax purposes. Emancipation The point at which a minor child comes of age. Children are emancipated in most states upon reaching the age of 18, 19, or 21, or upon marriage, full-time employment, graduation from high school, or entering the armed services. Emancipation is the point where parents have no further legal or financial obligations for a child's support. Underwater A loan having a balance that exceeds the current market value of the loan: Quitclaim Deed A deed that conveys to the grantee only such interests in property as the grantor may have, the grantee assuming responsibility for any claims brought against the property. Arrearages The difference between the amount of spousal or child support paid, if any, and the amount required under court order. Childcare Credit A nonrefundable childcare tax credit available to the custodial parent who pays for child or dependent care expenses so that they can be gainfully employed. Child Contingency Rule States that if any amount of spousal support specified in the divorce decree is reduced: (a) upon the happening of any contingency related to the child; or (b) at a time that can be clearly associated with a contingency related to the child, then the amount of the reduction will be treated as child support, rather than spousal support. These payments will be considered child support when the payments begin. (IRS Code Sec 71(c)(2)) Child Support The amount of money paid by a non-custodial parent to the custodial parent for a child's day-to-day expenses and other special needs. Each state is required by Congress to have written child support guidelines and enforcement procedures. Child Support Guidelines A series of mathematical formulas used to calculate the amount of child support to be paid in some cases. Congress has mandated that states adopt child support guidelines and support enforcement procedures. Custodial Parent The parent with whom the child(ren) live the majority of the time. A distinction should be made between a Legal Guardian (who has the ability to make legal decisions on behalf of the child) and the Custodial Parent: Technically, a Legal Guardian may have no custody rights at all. Custody Usually refers to the parent's right to (1) have a child live with that parent and (2) make decisions concerning the child. Exact meaning varies greatly in different states. The court awards custody to one parent, which is called Sole Custody, or grants Joint Custody, allowing both parents, the right to physical care, control, or direct physical supervision of the children. Garnishing The act by which support money is obtained from the non-paying spouse's employer, who draws that amount from his/her employee's paycheck. Joint Custody The children live with the residential custodian and visit with the non- residential parent. Both parents have an equal say in major decisions affecting the children and decisions can only be made with notice and consent. (See also "Sole Custody.") Maintenance Same as spousal support and alimony. Modification A change in the judgment based on a change in circumstances. Six-Month Rule Sole Custody The custodial parent has the power to make all decisions, both day-to-day and major decisions concerning the child's health, education, and welfare without consulting or notifying the non-custodial parent. Spousal Support Money paid by one spouse to the other for the recipient's support following the divorce. Support may be mandated for a specific period of time (long-term or short-term) and is based on the needs of the recipient, ability to pay, and economic differences between the partners. Also called alimony or maintenance. (See also "Section 71.") Spousal Support Recapture Under Internal Revenue Code (IRC) § 71 recapture requirements apply if excess alimony (also commonly known as "spousal support") payments are front- loaded into the first three post-separation years. Spouse Husband or wife. Standard of Living A factor when determining spousal support, allowing the recipient an adequate amount to maintain their current lifestyle. Tax Cuts and Jobs Act (TCJA) The Act signed into law in December 2017, that made significant changes for individual and business taxpayers. Changes included reduction of the personal exemption to zero, increase in the standard deduction amounts and major changes to itemized deductions. Tax Reform Act of 1976 This Act permitted spousal support to be deductible in arriving at adjusted gross income so that the tax payer who does not itemize deductions may nevertheless deduct spousal support. Bunching Deductions Tax strategy that involves "bunching" itemized deductions so that they are high in one year and low the following year. The standard deduction can be used on the alternate year. Earned Income Tax Credit (IRC Section 32) A custodial parent is entitled to an increased tax income credit if he or she has a qualifying child that meets IRS requirements. The innocent spouse elects the benefits no later than two years after the date the IRS has begun collection activities with respect to the individual making the election. Personal Exemption A tax deduction for individual taxpayer and any qualifying dependents they support. Section 7703(b) This section of the IRS Code states that a spouse is considered abandoned when all of the following conditions are met: -The abandoned spouse pays more than half the cost of maintaining his/her household for the taxable year. -The individual files a separate tax return. -The individual lives in a residence separate from his /her spouse for the last six months of the tax year. Chapter 7 Bankruptcy A type of bankruptcy ling that allows you to liquidate all of your assets and use the proceeds to pay o your debts, erasing your debts that cannot be paid o in full. All unsecured debts are forgiven and all assets over statutory minimum protected amounts are forfeited. Chapter 13 Bankruptcy Type of bankruptcy ling that allows you to develop a pay-o plan over a 3- year period. Some of the debts may be discharged. COBRA Consolidated Omnibus Budget Reconciliation Act (COBRA) law passed in 1986 It allows an ex-spouse to continue to receive health insurance coverage from his/her former spouse's employer if the employer has at least 20 employees, for up to three years after the divorce. Premiums for this coverage are typically higher than when they were covered under the employer's plan. It should be noted that the normal COBRA provision states that if an employee leaves or is red from a job, he or she can get health insurance from that company for 18 months. However, in the case of a divorce it is extended to three years or 36 months. Credit In most states, there is no attorney-client privilege for _________________________. an expert witness Acting as an __________________________ provides a measure of privilege. attorney's consultant ______________________ are the testimony of a witness taken out of court under oath and reduced to writing after discovery and prior to trial. The ____________________________ may be used to discredit a witness if he changes his testimony during trial. depositions, deposition The judge ____________ determine qualifications of an expert witness. does not Make sure that deductions for health insurance are correctly recorded and not double counted and that only non-reimbursed medical expenses are recorded. Insurance Deductions Mortgage payments are not typically double counted. However, the ____________________________________________ of the payments may be double counted. escrowed portion (property taxes and insurance) It is _______________________ responsibility to organize and coordinate discovery. the attorney's _____________________ are the first place to look to discover hidden assets. It is a good idea to review all tax returns for the past five years. Tax returns Beth saves $100 of her paycheck every month. She puts this money into an account under her name only, and now it is worth $2,600. At her divorce, is this money separate or marital property? It is marital property because it was acquired during the marriage, regardless of whose name is on the account. Payment by a property settlement note is still considered division of property, so the payor _______________ deduct it from taxable income. The payee ________________ pay taxes on the principal—only on _______________. does not, does not, the interest Calculating spousal support comes _________ the property is divided. The reason for this is that support can be based on the amount of _________________________, so it is important to look first at the property division. after, property received A loss on the sale of a primary residence or personal vacation property _____________________ deductible. If the vacation property is a rental instead of for personal use, then the loss __________________________. would not be, would be deductible As the interest rate _____________________, the present value of the pension will decline, and as the interest rate ___________________, the value of the pension will increase. increases, declines For defined benefit plans, the methods can be the _________________________, ________________________, and ____________________________. subtraction method, accrued coverture, prospective coverture If a participant is remarried at retirement, the new spouse gets all the survivor benefits unless the QDRO provides for _____________________________________________ survivor benefits for the alternate payee (former spouse). If one spouse, pursuant to a divorce decree or separation agreement, is required to grant the other spouse the right to temporary possession of the residence, but retains title to the residence, and it is later sold, the non-occupying spouse will be treated as ____________________________________________________. having used the residence for the period of time that the occupying spouse used the residence. Generally, taxpayers can only exclude from income one sale every two years. Exceptions include ______________________, _________________________, and _____________________________. child support In the case of divorce, depreciation recapture can be recaptured from ___________________________ rather than_______________________. the transferee, the transferor Life insurance is only required if _________________________ the judge orders it. The treatment of maintenance after the JTCA of 2017 is Not deductible to the payer and tax-free income to the recipient. Maintenance is no longer deductible and after JTCA is no longer taxable to the recipient. Spousal support stopping upon the cohabitation of the recipient __________________ exception to the recapture rules. Death of the payor, death of payee, and remarriage _________ exceptions to the recapture rules. is not an, are Legal Fees - Attorney fees and court costs incurred for a divorce ____________ deductible. Even if the fees and costs are incurred to obtain a financial settlement or to preserve property, they _____________ deductible. are not , are not Child support is ____________ taxable. never A _______________________ tax carryforwards affects the basis of an asset upon transfer in a divorce. passive activity loss A net operating loss _________________ affect the basis of the business. does not The earned income tax credit _______ refundable. The credit ____ paid even if all of the taxes that were withheld are refunded to the taxpayer. There is a lot of fraud involving the earned income credit. is, is The ________________________ parent is entitled to take the childcare credit for the ______________________________________. custodial parent claims the credit for the expenses he or she paid. A valid prenuptial agreement __________________ waive either party's right to apply for and receive Social Security benefits. cannot If the company is not notified within ____________ of divorce, the company does not have to provide COBRA benefits. sixty days For COBRA, must pay _____________________ including both the _____________________ and ______________________, plus an additional __% for administrative costs. Worth exploring if more economical options are available since cost is ______% of the full premium. full premium amount, employer and employee portions, 2%, 102% If insurance is required as part of the judgment, the ________________ spouse should own the life insurance policy and make the premium payments. This prevents any changes in the policy without his or her knowledge. recipient For _________ years after the divorce, the IRS can perform a random audit of joint tax returns. In addition, the IRS can audit a joint return—if it has good cause to do so—for __________ years. It can also audit a return ___________________ it feels fraud is involved. three, seven, whenever Creditors do not care how the separation agreement divides responsibility for the debt. Each person is liable for ______________________________________________. the full amount of the debt on joint accounts until the bill is paid. If the spouses have joint charge accounts, they will both have the same _____________________. If a spouse files for bankruptcy before, during, or after divorce, the creditors will seek out ___________________ for payment, no matter what was agreed to in the separation agreement. credit history, the other spouse, $2,000 into a joint account with her mother. Which assets are considered Tammy's separate property? Two rings, some books, an antique dresser and $2,000. Everything Tammy received as a gift, including the joint account with her mother, is separate property Real property brought into the marriage and maintained as separate property _________ considered marital property. is not Many states would consider property to be marital property if it had which of the following attributes? It increased in value and was maintained as separate property. Wilma is transferring her interest in the marital residence to her former husband, Fred, by quitclaim deed. Which of the following will happen to the mortgage? Wilma will remain liable for the mortgage on the residence. Even though Wilma's name is off the deed, it remains on the mortgage. Wilma is still liable if Fred decides to stop making the payments. If there is recapture of spousal support, how will the recapture be treated for tax purposes? Report the excess support as taxable income in the third post-separation year. The QDRO is qualified when it has been accepted by ________________________. the plan administrator. A taxpayer filing as Married Filing Separately does not qualify for the __________________ credit. childcare What is the fine for withholding your Social Security number? $50 Childcare expenses for a child without disabilities can qualify for the tax credit for child and dependent care expenses as long as the child is no older than ______. 12, or 13 if disabled There are four basic steps to direct examination: explain the assignment, explain procedures and assumptions, summarize work, and admit exhibits. What tax form waives the custodial parent's right to claim the children as dependents? 8332 The _________________________ is the number of years married while earning the pension divided by the total number of years of service under the plan until retirement. coverture fraction The Unemployment Compensation Amendment of 1992 requires what percentage of tax be withheld from a distribution from a 401(k) plan? 20% TWIN CAN LAW is a nmemonic to help recall which states have The states that recognize community property are Texas, Washington, Idaho, New Mexico, California Arizona, Nevada, Louisiana, Alaska, and Wisconsin When can Mindy likely start receiving pension benefits if she were granted some portion of the payout as part of the divorce settlement? At Phil's earliest retirement age - even if he is not retired yet. In most cases, the non-employee spouse is able to start receiving pension benefits at the employee's earliest retirement date. Community property can be changed by a __________________, ___________________ (legal term that means to change form) and a _____________________________. Informal assent or behavior would not change the nature of the property. prenuptial, transmutation (legal term that means to change form) and a post-nuptial agreement There are two major exceptions to the nonrecognition rule: it does not apply if one spouse is _________________________, and it does not apply to a transfer of ______________. a nonresident alien, services