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April 2014 CLE Quiz

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Test 23
ANSWER THE FOLLOWING QUESTIONS TIPS ON TIPS – Answer each statement with “True” or “False.”
Protection Securities.  TRUE OR factors FALSE  The Brunzell are mandatory and must be considered in every award of attorney fees. 2. TIPS are currently very popular with investors due to their inflation protection feature. TRUE OR FALSE     2. The Brunzell factors must be reflected within the 3. written An investment in TIPS is always preferable to an order granting attorney fees. investment in a regular (non-inflation-protected) Treasury security. TRUE OR FALSE  4. AThe inflation index usednot to determine the final 3. written order that does state the basis for value of TIPS may not match up with the actual which attorney fees are granted is always void. inflation experienced by the investor. TRUE OR FALSE 
4. the annual Beattie/Yamaha factors are by the 5. IfThe interest rate paid onweighed recent issuances district court, but not reflected within the written of TIPS is near zero. TRUE OR FALSE    order granting attorney fees, the Supreme Court is 6. permitted TIPS canto sometimes cost less to than their face value. review the record affirm the award of TRUE OR FALSE    fees on the basis of these factors.
Respond to each“TIPS” of the following statements with “True” or “False.” 1. The acronym stands for Treasury Investor 11. The Fed’s stated target inflation rate is 5 percent.
TRUE OR FALSE 7. A district court’s consideration of the Beattie/ 12. A TIPS investor can be liable for anorders annual income Yamaha factors is mandatory in all tax on any annual increase in the TIPS value due granting attorney fees. to the inflation index even when the investor has not received any money from the TIPS investment.  TRUE OR FALSE  8. When there are multiple possible legal grounds for offset an award of or attorney fees, a district court of 13. To some all of the annual tax liability abuses when it doesand not deduct state a the a TIPS, its an discretion investor can amortize basis for an award of attorney premium that was paid for the fees. TIPS. TRUE OR FALSE    14. The IRS has provided a TIPS premium 9. A district court judge always has the discretion to amortization procedure that is readily adaptable determine the reasonableness of the amount of to actual TIPS purchases. TRUE OR FALSE    requested attorney fees. 15. Premium amortization affects the amount of capital gain or loss at TIPS maturity. FALSE    court considers the Beattie/ 10. TRUE When a OR district Yamaha factors for an award of attorney fees 16. All TIPS investors should amortize the anydistrict TIPS based upon an offer of judgment, premiums paid.  TRUE OR FALSE  court is excused from considering the Brunzell factors. 17. All things considered, a TIPS investment can still be a desirable investment.  TRUE OR FALSE    18. So long as held to maturity, an investment in a TIPS will not result in a loss. TRUE OR FALSE  19. TIPS are best suited for tax-free or tax-deferred accounts.  TRUE OR FALSE 
7. TIPS can sometimes cost more than their face value. TRUE OR FALSE    5. Orders denying a request for attorney fees must 8. The cost of a TIPS depends primarily on investors’ always provide a reason for the denial. expectation of future inflation. TRUE OR FALSE    9. Recent TIPS auctions have sold at unusually large discounts from their faceapplicable value. 6. The Yamaha factor is only when the offer TRUE OR FALSE    of judgment is the basis for the award of attorney
fees and the defendant is theexpect prevailing offeror. rate 10. An investor in TIPS should an inflation of at least 2.5 percent. TRUE OR FALSE 
CERTIFICATION: This self-study activity has been approved for one hour of continuing legal education credit by the Nevada Board of Continuing Legal Education.
1) Read the article on pages 16-17 2) Answer the quiz questions above. Each question has only one correct answer. 14-16 3) Mail completed form and a $40 processing fee to: STATE BAR OF NEVADA
P .O. BOX 50 LAS VEGAS, NV 89125-0500 or fax to: (702) 405-5680
Make checks payable to the State Bar of Nevada.
Name Law Firm/Organization Address State/ZIP NV Bar Number (Required)  Check Enclosed OR Please bill my: Card #: Signature:
Articles for CLE credit are valid up to the end of the third calendar year after publication Articles for CLE credit are valid up the to the end of the thirdwhichever calendar year after  publication or until a rule change renders article outdated, is comes rst. or until a rule change renders the article outdated, whichever is comes first.
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