300-710 Practice Questions

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NEW QUESTION: 1
Smith made a gift of property to Thompson. Smith's basis in the property was $1,200. The fair market value at the time of the gift was $1,400. Thompson sold the property for $2,500. What was the amount of Thompson's gain on the disposition?
A. $0
B. $1,300
C. $1,100
D. $2,500
Answer: B
Explanation:
Explanation
Choice "c" is correct. The general rule for the basis on gifted property is that the donee receives the property with a rollover cost basis (equal to the donor's basis). An exception exists where the fair market value of the property at the time of the gift is less than the donor's basis. That is not the case in this question; thus, the calculation of the gain on the disposition of the property is:

Choice "a" is incorrect. This choice could be correct if the facts of the question met the exception whereby no gain or loss is recognized when a donee sells gifted property for an amount between the donor's basis and the fair market value at the date of the gift.
Choice "b" is incorrect. This choice uses the basis as the fair market value of the property. Fair market value of property at date of death is used as the basis for inherited property, not gifted property.
Choice "d" is incorrect. This choice assumes that Thompson's basis is zero. His basis is $1,200 as indicated above.

NEW QUESTION: 2
What is the role of Apache Tika in DPSearch?
A. Handles garbage collection
B. Communicate to Avamar and NetWorker
C. Carnes out full content indexing, if selected
D. Handles collection activities
Answer: A

NEW QUESTION: 3
Share reflects a contribution in ownership of the company
A. FALSE
B. TRUE
Answer: B

NEW QUESTION: 4
You are the business analyst for your organization and are in the process of creating the solution approach for a technology problem. Which one of the following definitions best describes the solution approach?
A. Defines the general approach that will be taken to create or acquire new capabilities required to meet the business need.
B. It is the documentation and control of changes to the product scope as approved by the project stakeholders.
C. It is an uncertain event or condition that may have a positive or negative impact on the abilities of the chartered project.
D. Decomposes the project scope into smaller deliverables; each deliverable is subdivided repeatedly until the deliverable cannot or should not be broken down any further.
Answer: A