REG Study Group – Q2 2018 - Page 17

On July 1, Silk, Inc., sent Blue a telegram offering to sell Blue a building for $80,000. In the telegram, Silk stated that it would give Blue 30 days to accept the offer. On July 15, Blue sent Silk a telegram that included the following statement: “The price for your building seems too high. Would you consider taking $75,000?” This telegram was received by Silk on July 16. On July 19, Tint made an offer to Silk to purchase the building for $82,000. Upon learning of Tint’s offer, Blue, on July 27, sent Silk a signed letter agreeing to purchase the building for $80,000. This letter was received by Silk on July 29. However, Silk now refuses to sell Blue the building. If Blue commences an action against Silk for breach of contract, Blue will:

A.
win, because Blue effectively accepted Silk’s offer of July 1.

B.
win, because Silk was obligated to keep the offer open for the 30-day period.

C.
lose, because Blue sent the July 15 telegram.

D.
lose, because Blue used an unauthorized means of communication.

The correct answer is A. But why is the July 15 telegram not considered a rejection and counteroffer?

@jsdailey thanks. Just wanted to nail down these final questions before my test tomorrow.

this one got me too, according to the explanation, bc Silk gave 30 window, but I saw another question with the lawn mover where when the party learned of someone else buying it and sent an acceptance of the offer it did no longer apply bc as soon as they learn of someone else buying it that voids the offer…

Just got back from my exam and I will just say that was tough. The MCQ seemed like they were all over the place, with most of them being conceptual and hardly any calculations. The SIMS were difficult but fair. I agree with pretty much everything posted in the Reg Exam Experience thread. Good luck to all of you.

Brian Cartwright is a single taxpayer who itemizes deductions and has no dependents.

Since Year 1, Brian has owned a 50% interest in Technology Plus, Inc., an S corporation from which he was paid a salary and received distributions in Year 4 (each paid according to the ratio of ownership).

Technology Plus, Inc. issued Brian a K-1 for Year 4 (detail provided below).

Technology Plus, Inc.
Revenues:
Sales
$225,000
Taxable interest income
5,000
Long-term capital gains
40,000
Total revenue
270,000

Expenses:
Shareholder salaries
150,000
Cost of goods sold
50,000
Operating expenses
12,000
Charitable contributions
1,000
Regular depreciation
3,000
Section 179 depreciation
6,000
Total expenses
222,000

Net income before distributions 48,000

Distributions to shareholders ($20,000)

my question is that income/loss on schedule k-1 is only related to that member not the total income/loss of s corp. right?? because for total income/loss of s corp. we use schedule K. I got this question wrong on becker mock exam because I took whole income/loss for brian as part of calculation. please help?

If Wiley had hands I'd fight them right now. Why on earth do they insist on asking every single difference and weird in thing. Alimony by definition only terminates at death of other spouse. Why recapture it for a decline if it didn't meet the original criteria of lasting until spouse death?????

@Lexi
We’re testing the same day. Mine is at 8am.
Good luck to both of us and to everyone testing this window!!!

My mock test#3 was bad! I thought it was a little easier than #2. I scored a 59%. My MCQs were 80% and SIMs were 34%. Becker’s grading system for SIMs sucks!

All I’m doing today is review this practice test result, read my notes, and go to bed early tonight.

Good luck @Lexi and @Amor!!!!