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CPP-Remote Sample Questions Answers

Questions 4

Which of the following is not likely to be included in payroll documentation?

Options:

A.

Auditors' Questionnaire

B.

Proofing and Balancing Payroll

C.

Tax Set Up

D.

Correcting Errors

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Questions 5

The FLSA term "exempt" generally means the employer need NOT:

Options:

A.

Withhold federal income tax

B.

Pay overtime

C.

Pay federal income tax

D.

Pay a minimum amount

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Questions 6

Under the Immigration Reform and Control Act, employers and employees are required to complete which of the following forms:

Options:

A.

W-4

B.

I-9

C.

SS-5

D.

SS-4

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Questions 7

The entry to record an employee's repayment of a salary advance is (salary advance is deducted on a pretax basis from regular wages):

Options:

A.

Debit salary expense, credit accounts receivable

B.

Debit salary expense, credit wages payable

C.

Debit accounts receivable, credit cash

D.

Debit cash, credit salary expense

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Questions 8

To build morale and motivate staff, a manager must:

Options:

A.

delegate accountability to staff members

B.

gives good reviews and raises

C.

be sincere and specific with praise

D.

reward "stars" and promote competition within the team

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Questions 9

A procedure to have a time record signed by an employee indicates:

Options:

A.

authorization for payment

B.

hours cannot be challenged

C.

confirmation of total hours

D.

time spent at the establishment

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Questions 10

The obligations of the common paymaster include:

Options:

A.

Absorbing the salary expenses for the individuals employed concurrently by the related corporations

B.

Deducting from its corporate tax return the salary and wage expenses for all of the individuals employed concurrently by the related corporations

C.

Absorbing the employer tax expenses for the individuals employed concurrently by the related corporations

D.

Depositing and reporting the taxes withheld from the individuals it pays who are concurrently employed by the related corporations

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Questions 11

In a customer service situation, Payroll should:

Options:

A.

get in the last word

B.

avoid addressing stressful issues

C.

assure the caller everything is okay, even when it's not

D.

remain assertive and stays focused

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Questions 12

What is the amount reported in box 12, and what code is used?

Options:

A.

C 4,980

B.

D 24,582

C.

C 10,480

D.

D 29,682

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Questions 13

All of the following items qualify as a de minims fringe benefit EXCEPT:

Options:

A.

occasional parties and picnics for employees

B.

traditional holiday gifts, such as food items

C.

group legal services worth less than $70 annually

D.

occasional supper money for working overtime

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Questions 14

A service company sends employees overseas on assignments that last no more than 4 months at a time. Which of the following is true with respect to the taxation of those employees?

Options:

A.

The are subject to U.S. Taxation on their pay only while in the United States

B.

They qualify for an income tax exemption under the "physical presence test"

C.

They are subject to U.S. taxation on their pay for the time in and out of the country

D.

They qualify for income tax exclusion under the "bona fide residence test"

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Questions 15

If a company is examining the feasibility of purchasing an integrated human resource information system (HRIS), what approach is best?

Options:

A.

Instruct each user area to conduct an independent search for a software vendor

B.

Assign the search task to the information systems staff who have prior experience in each HRIS discipline

C.

Assemble a team of information system staff and potential users to conduct the search

D.

Authorize the company's payroll manager to select the vendors from which to choose

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Questions 16

The final due date for the second quarter Form 941, assuming that the employer paid all taxes on time is:

Options:

A.

August 10

B.

June 30

C.

July 10

D.

July 31

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Questions 17

An employer may accept a child support order directly served from another state without risk of liability under which of the following laws?

Options:

A.

ERISA

B.

URESA

C.

OCSE

D.

UIFSA

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Questions 18

Which for the following statements is true?

Options:

A.

A company's fiscal year must not be the same as the calendar year

B.

A company's fiscal year must be the same as the calendar year

C.

A company may designate its fiscal year to cover 12 months that differ from the calendar year

D.

A company must produce Forms W-2 at the end of its fiscal year regardless of the calendar

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Questions 19

For how many years must the employer's copy of Form 940 be retained?

Options:

A.

2

B.

5

C.

3

D.

4

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Questions 20

An employer that deposits payroll taxes semiweekly incurs a tax liability of $55,000 on Tuesday and a liability of $110,000 on Wednesday. When should the taxes be deposited?

Options:

A.

$110,000 on Thursday and $55,000 on Friday

B.

$165,000 on Thursday

C.

$55,000 on Thursday and $110,000 on Friday

D.

$55,000 on Friday and $110,000 on the next Wednesday

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Questions 21

Under theĀ FLSA, how many hours would be paid at time and one half for the following biweekly period, assuming that the employee is an garment worker?

Options:

A.

0

B.

0.5

C.

8

D.

8.5

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Questions 22

Under the FLSA, how long are employers required to keep records relating to wages, hours, and conditions of employment?

Options:

A.

permanently

B.

4 years or until the file is no longer active

C.

3 years

D.

7 years

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Questions 23

An employee earns $9 per hour and an additional 10 cents per hour for hours worked after 7:00 p.m. If an employee works from 3:00 p.m. to 11:00 p.m., Monday through Friday, what is the employee's weekly gross pay under the Fair Labor Standards Act?

Options:

A.

$360

B.

$362

C.

$364

D.

$361

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Questions 24

Which of the following benefits is allowable in an 125 plan?

Options:

A.

Disability insurance

B.

Educational assistance

C.

403(b)

D.

Transportation fringe benefits

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Questions 25

A company has a gross payroll of $120,589.36. Federal taxes withheld are $24,117.87; combined social security and Medicare taxes withheld are $6,502.50. What is the company's total tax liability for this pay period?

Options:

A.

$37,122.87

B.

$30.620.37

C.

$42,568.04

D.

$61,240.74

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Questions 26

Which of the following is not a by-product of documentation?

Options:

A.

Simplified training

B.

Consistency

C.

Reference material

D.

Firewall violation prevention

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Questions 27

The FLSA requires which of the following records to be retained for three years?

Options:

A.

Proof of workers' compensation coverage

B.

Document showing employee's job duties

C.

Daily time records

D.

Employee disciplinary notices

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Questions 28

Which of the following accounts has a normal credit balance?

Options:

A.

Expense

B.

Asset

C.

Cash

D.

Liability

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Questions 29

Which of the following statements is CORRECT regarding a federal tax levy?

Options:

A.

It does not have to be honored if any other garnishments have been served.

B.

It is limited only by the amount of the employee's net pay

C.

It is continued each pay period until a release of levy is received.

D.

It requires a new order for each pay period.

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Questions 30

Which of the following employee's wages is likely to be subject to FUTA?

Options:

A.

A parent employed by his or her child

B.

A spouse employed by spouse

C.

A child under age 21 employed by parent

D.

A statutory employee

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Questions 31

The proper handling of a stop payment includes all of the following steps EXCEPT:

Options:

A.

notifying the bank account reconciliation employees

B.

documenting the reason for the transaction

C.

reversing the direct deposit

D.

cancelling the payment in the payroll system

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Questions 32

Which of the following is not likely to be in the skills set needed for a manager?

Options:

A.

Communications

B.

Planning

C.

Organization

D.

Partiality

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Questions 33

If an employee fails to furnish the employer with a Form W-4, the employer is required to withhold federal income tax at the rate of:

Options:

A.

Single and 1 allowance

B.

Single and 0 allowances

C.

Married and 0 allowances

D.

Married and 2 allowances

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Questions 34

Copies of the production files and most recent payroll transactions are sent nightly to the parent company in a remote location. this practice is part of what type of plan?

Options:

A.

disaster recovery

B.

security

C.

control

D.

maintenance

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Questions 35

Under the FLSA, which of the following restrictions apply when hiring minors under the age 18?

Options:

A.

Work cannot be performed pursuant to jobs considered hazardous by the U.S. Department of Labor

B.

They are not subject to overtime

C.

Social Security and Medicare are not deducted for the first 90 days

D.

If the employees do not have drivers' licenses, the employer may not hire them

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Questions 36

Which of the following is an example of a system production control technique?

Options:

A.

Payroll department members change their passwords each week

B.

External auditors verify payroll account balances prior to commenting on financial statements

C.

Cut-off dates for data entry are established with remote users

D.

Check stock is maintained under lock and key

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Questions 37

The Fair Labor Standards Act permits compensatory time off in lieu of overtime pay to which of the following employees?

Options:

A.

High school students who work over 8 hours in a day

B.

Salespeople who work out of their homes

C.

Municipal firefighters

D.

Retirees who return for part-time work

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Questions 38

An integrated HRIS offers the advantage of:

Options:

A.

Decreased requirements for technical improvements

B.

Reduced effort in the maintenance of employee records

C.

Enhanced screen display of employee data

D.

Improved security of confidential payroll

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Questions 39

Use of which of the following contributes to the security of the payroll system?

Options:

A.

Field level access restriction

B.

Aggregate withholding

C.

Reversal entry

D.

Quality program

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Questions 40

The KEY advantage of using an automated time and attendance system is that it:

Options:

A.

interfaces with the payroll system

B.

reduces errors

C.

frees supervisors from having to review hours

D.

identifies phantom employees

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Questions 41

Which of the following employees is most likely to be an exempt professional under FLSA?

Options:

A.

Labor Relations Director

B.

Accounts payable clerk

C.

Payroll specialist

D.

Human resources receptionist

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Questions 42

The fact that transactions affect two separate accounts of a business is called:

Options:

A.

T-accounting

B.

accrual accounting

C.

compound-entry accounting

D.

double-entry accounting

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Questions 43

The term Workforce Management refers to:

Options:

A.

Third party background check services

B.

Time management

C.

Recruiting services

D.

Management of employee business functions

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Questions 44

Which of the following features is LEAST likely to be considered when looking at the security of a new payroll system?

Options:

A.

system edits

B.

A regular data back-up and storage

C.

limited system access

D.

protection against computer viruses

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Questions 45

In keeping with internal control best practices, which of the following would probably not be included in the job description of a payroll specialist?

Options:

A.

Verifying proper authorization appears on change documents

B.

Reconciling payroll bank account

C.

Preparing requisition for remitting child support deductions

D.

Entering employee tax jurisdiction information from Form W-4

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Questions 46

Which of the following is an example of a system production control technique?

Options:

A.

Computers and other hardware are kept in climate controlled rooms

B.

Forms W-9 are obtained for all independent contractors

C.

A check list is created of sequential activities to run the payroll

D.

Job descriptions are updated as the incumbents of the jobs change

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Questions 47

The entry to record an employee's repayment of a salary advance is (employee repays advance by personal check):

Options:

A.

Debit cash, credit accounts receivable

B.

Debit cash, credit wages payable

C.

Debit salary expense, credit accounts receivable

D.

Debit accounts receivable, credit cash

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Questions 48

Transactions are recorded in chronological order into books of original entry called:

Options:

A.

registers

B.

journals

C.

vouchers

D.

invoices

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Questions 49

Employee Cindy's employer remits to her payment of $620 in 2009 for substantiated meal expenses she incurred while moving from her old residence to her new work location. What amount of this expense, if any is excluded from Cindy's federal taxable wages?

Options:

A.

$0

B.

$310

C.

$620

D.

$496

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Questions 50

Which of the following is important when planning a problem-solving meeting?

Options:

A.

Determine the detailed solution you expect to hear from the participants

B.

Begin with an overview of good time management

C.

Prepare an agenda and distribute prior to the meeting

D.

Invite the participants who will agree with your position

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Questions 51

Which of the following would most likely be a key step in reconciling a payroll withholding account?

Options:

A.

Set a schedule for paying taxes withheld

B.

Perform a "reasonable test" to confirm liability is within an acceptable range compared to same time last month

C.

Identify which payees (tax agencies) have unpaid or overpaid tax amounts and how much for each

D.

Periodically reviewing the deposit look back period

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Questions 52

Choose the statement that represents the best implementation of internal control:

Options:

A.

Payroll master file changes are reviewed by human resources

B.

Supervisors input increases and new hires to the payroll master file

C.

The bank is instructed to send canceled checks directly to the payroll manager

D.

Payroll computes cost-of-living increases for employees

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Questions 53

A company pays all executives semimonthly. The FLSA requires all other employees to be paid on:

Options:

A.

any established cycle

B.

a weekly cycle

C.

a biweekly cycle

D.

a semimonthly cycle

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Questions 54

Which of the following would NOT be correct in the treatment of deceased workers' wages, assuming the wages are paid in the year after the workers' death?

Options:

A.

Report payment in box1 of Form W-2

B.

Payment is exempt from FITW

C.

Report payment in box 3 of Form 1099

D.

Payment is exempt form FICA and FITW

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Questions 55

If an employee working abroad with a tax home in a foreign country passes the "physical presence test," to what may the employee be eligible?

Options:

A.

Foreign service premium

B.

Employer-paid housing expenses

C.

Hardship allowance

D.

Income exclusions

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Questions 56

An employee covered by group health insurance at the time his employment terminates to return to school is entitled to CORBA continuation rights for:

Options:

A.

24 months

B.

30 months

C.

18 months

D.

12 months

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Questions 57

Which of the following items determines the disposition of unclaimed wages?

Options:

A.

federal law only

B.

federal and state law

C.

no recognized procedures exist

D.

state law only

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Questions 58

All of the following steps are required when initiating direct deposit for an employee EXCEPT:

Options:

A.

pre-notification

B.

getting authorization from the employee

C.

receiving financial institution routing number

D.

receiving employee's bank account number

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Questions 59

Sally's department was scheduled to work from 8:00 a.m. until 5:00 p.m. It was announced to all employees that a severe winter storm was expected to reach the city between 4:00 p.m. and 5:00 p.m. Employees of Sally's department asked if they, like most other departments, would be allowed to leave work at 3:00 p.m. to avoid being caught in the storm. Sally was sympathetic, but after much discussion denied the request, stating that the policy was clear that employees were to remain on duty until 5:00 p.m. Which of the following management styles is Sally demonstrating?

Options:

A.

Diplomatic

B.

Bureaucratic

C.

Autocratic

D.

Participative

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Questions 60

Jane voluntarily separated from employment. She is allowed to continue paying for her medical insurance at cost plus 2% under what legislation?

Options:

A.

Fair Labor Standards Act of 1948

B.

Family and Medical Leave Act of 1993

C.

Tax Reform Act of 1986

D.

Consolidated Omnibus Budget Reconciliation Act of 1985

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Questions 61

Which of the following is the first step on goal-setting?

Options:

A.

Ask other department managers for copies of their written plans

B.

Review the department members' performance appraisals

C.

Develop a plan of action

D.

Obtain salary history for all staff members

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Questions 62

The primary responsibility of Professional Employer Organizations is:

Options:

A.

Determining the client's products and services

B.

Establishing their client's FEIN

C.

Leasing the buildings and fixtures

D.

Co-employment of their client's employees

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Questions 63

Using federal child support guidelines, calculate the maximum amount of support that can be withheld from an employee's semimonthly disposable earnings of $1,500.00. The employee is four months in arrears in making child support payments and has no other dependents.

Options:

A.

$900.00

B.

$825.00

C.

$750.00

D.

$975.00

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Questions 64

As part of the implementation of a new payroll system, all transactions from the most recent actual payroll are processed in the new system prior to using the system to run payrolls. This is an example of what type of testing?

Options:

A.

back-up

B.

ongoing

C.

compliance

D.

parallel

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Questions 65

What is one of the major considerations when evaluating and selecting a software system for payroll?

Options:

A.

The sale's representative's knowledge of payroll

B.

The arrangement of the panels for on-line data entry

C.

The number of trainers the software has available

D.

The fit of the technical platform with the company's strategic plans

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Questions 66

Which of the following is one of the purposes of a job description?

Options:

A.

Illustrates the position in relation to others in the organization

B.

Outlines individual performance goals for next fiscal year

C.

Describes incumbent's obligations to pay appropriate federal, state, and local taxes while holding the position

D.

Provides implementation plan for conversion to new system

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Questions 67

Which of the following represents the best way of addressing an issue of an employee's poor task performance?

Options:

A.

Relocating physical work space near the supervisor

B.

Reassignment to another department

C.

Targeting training

D.

Assigning to an autocratic leader

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Questions 68

An employer that pays its state unemployment contributions after the due date of the Form 940 has its FUTA credit reduced by what percentage?

Options:

A.

90.0%

B.

5.4%

C.

10.0%

D.

6.2%

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Questions 69

A pre notification may be used when an employee:

Options:

A.

Has insufficient funds in a checking account

B.

Loses a paycheck

C.

Is relocated

D.

Changes banking institutions

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Questions 70

Which of the following is a technique for positive motivation?

Options:

A.

Rewarding team members for their collective successes

B.

Acknowledging a team member is failing at the regular team meeting

C.

Posting defects and the perpetrator's name as an example to others

D.

Terminating a team member at the first delayed deliverable

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Questions 71

Which of the following employers are exempt from the provisions of IRCA?

Options:

A.

Privately held employers

B.

Employers with annual revenues under $10,000

C.

All employers are subject to compliance

D.

Employers with less than 2 employees

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Questions 72

An example of procedure is:

Options:

A.

Employees receive their hourly rate of pay for hours spent in jury service

B.

Overtime is paid at double time for work performed on Sundays

C.

Employees may take unused vacation from the current year in the first quarter of the subsequent year

D.

Time cards are filed by the cost center in the records room

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Questions 73

An employee contributes $2,000 on a pretax basis to a 401(k) qualified plan. How is this pretax contribution reported on the 2009 W-2?

Options:

A.

Boxes 3/5, box 12, box 13 (retirement plan)

B.

Boxes 3/5, box 13, (retirement plan)

C.

Box 12, box 13 (retirement plan)

D.

Box 1, box 3/5, box 13 (retirement plan)

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Questions 74

Which of the following is usually considered an advantage for outsourcing payroll?

Options:

A.

All of the business needs can be met with no customizations

B.

Tax withholding updates in the system are the responsibility of the service provider

C.

The employer is relieved of all compliance responsibility

D.

Business decisions transfer to the outsource provider

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Exam Code: CPP-Remote
Exam Name: Certified Payroll Professional
Last Update: May 17, 2024
Questions: 249
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