[Mary 2496]

Is anyone using Becker for REG that’s on REG 4? If so, look at Regulation 04, the second simulation, simulation #4. I swear that Smith’s ending basis doesn’t calculate to what Becker has, no matter how I do it. I keep getting 85,200 as opposed to their 86,200.

Has anyone else tried this particular question in the sim, by chance?

[rzrbkfaith]

@Mary – yes, and the Becker answer is correct. Where are you getting stuck?

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Mary 2496]

His beginning tax basis is $50,000. I then have these to account for:

Ordinary income from business 23,000

Interest income 700

Life ins. premiums (800)

Penalties (100)

Guaranteed payment to other guy 0

Addt'l capital 15,000

Distributions (2000)

Land investment 0

Ending basis 86,200

??? I am coming up with 85,800, not 86,200. How are you getting 86,200?

** Many thanks!

[Mary 2496]

Has anyone else tried this problem, by chance, that's using Becker? Can't figure out where I'm going wrong.

[rzrbkfaith]

Sorry Mary. If you run the math, yes, the total is wrong, but all of the individual items are correct. I never even looked at the total, only the individual items.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Mary 2496]

No– that's okay. I just wanted to make sure that it was an error in Becker and that I wasn't somehow missing something. I was afraid I had crossed the bridge to insanity or something.

[CPA soon]

You only subtract half of the life insurance premuim, Smith's portion. $86,200 is correct

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[Author]

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