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5.Which statement about the American Opportunity Tax Credit and the lifetime learning credit is FALSE?

A. A portion of the American Opportunity Tax Credit is a refundable credit.

B. An eligible individual for the lifetime learning credit may be enrolled part-time.

C. An eligible individual for the lifetime learning credit may have a felony drug conviction.

D. Only four-year universities are eligible institutions for the American Opportunity Tax Credit and the lifetime learning credit. 

 

6.Dale is a degree candidate at a state university. He received a $3,500 unrestricted scholarship from a local civic organization. How much of Dale's scholarship is taxable?

A. $0

B. $3,500

C. The portion that exceeds his room and board expenses.

D. The portion that exceeds his tuition and book expenses.

 

7.Generally, if the owner of an IRA dies before beginning required minimum distributions, the designated beneficiary must:

A. Take the entire amount in lump-sum in the year after the year of death.

B. Take the required minimum distributions for the years after the year of death.

C. Take the entire amount within five years after the year of death.

D. Begin to take the required minimum distributions when the beneficiary turns 70½.

 

8.James, who lives in Texas, is searching for like-kind replacement property for his investment-use unimproved land. Each of the following is qualified like-kind property EXCEPT:

A. An office building located in California.

B. 200 acres of farm land located in Iowa.

C. An apartment building located in Oklahoma.

D. A 25-year lease of unimproved land in Texas.