[jeff]

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[angiesavitsky]

Hi! Taking reg on 4/27. Took FAR 1/2/19 and failed, going to retry FAR after reg (NTS expires for reg).

[asdf]

I'm confused on Offer Revocation (Direct and Indirect)
I saw a question from Wiley like this,
“Foster offered to sell Lebow his garage for $27,000. The offer was in writing and signed by Foster. Foster gave Lebow 5 days to decide. On the fourth day Foster accepted a better offer from Dilby, who was unaware of the offer to Lebow. Foster subsequently conveyed the property to Dilby. Unaware of the sale to Dilby, Lebow telephoned Foster on the fifth day and unconditionally accepted the offer. Under the circumstances, Lebow —”
a. Is entitled to specific performance by Foster.
b. Has no rights against Foster.
c. Is entitled to damages.
d. Can obtain specific performance by Dilby upon depositing in court the $27,000 he agreed to pay.
I chose “Has no rights against Foster.” which was wrong answer. and the reason was “This answer is incorrect because a revocation must be communicated to the offeree to terminate the offer, thus Foster never effectively revoked the offer. Lebow therefore is entitled to damages.”
But I learned from other material, there is no need to communicate to revoke “indirectly”. The example in the book is this:
“Alex offers to sell his car to Bob for $500. Bob tells Alex that he wants to think about it. The next day, Carol, a friend of Bob, drives over to Bob's house to show Bob the car she just purchased form Alex. The offer to Bob IS REOVOKED.”
which seems to be same situation as Wiley saying it need to communicate to complete revocation.
I am so confused on this, please help!!

[watermelon]

@Asdf I will give it try but I am not 100% sure as well. if you look at what was explained by Becker, for indirect revocation, where the offeree receives correct information that the offeror no longer wants to make the offer, which means the offeree has to know the offer is no longer valid by receiving the information directly or indirectly.

In the second example, Bob knows the offer is revoked when Carol shows him the car (see it to believe it or know it to believe it), even though Alex didn't tell Bob himself directly. but in the first MCQ, Lebow was not aware of the sale at all in any possible way. therefore, he is entitled for some damage.

[ahugemistake]

I agree with @Watermelon here, the question doesn't have indirect revocation, the offeree was unaware of the facts when he called the offerer.

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[ahugemistake]

how much time are you all spending on learning the different business credits? I feel like this whole section is barely tested.

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[watermelon]

@ Ahugemistake All I did was going through Becker's lecture and did the MCQ, I didn't spend any extra time to review individual tax part since a lot of people mentioned it's not heavily tested. and my test is tomorrow afternoon, I don't think i have enough time for anything now. haha

[ahugemistake]

Abe, Betsy, and Dan decide to form the equal ABD partnership at the beginning of Year One. Abe contributed depreciable assets that he has owned for five years that have a basis of $15,000 and a value of $20,000. Betsy contributed $20,000 cash. Dan contributed $12,000 in cash and land with a basis of $5,000 and a value of $8,000. How much income is allocated to Abe if the partnership sells the assets contributed by Abe for $18,000?

Answer: $3,000

The realized gain on the sale of the assets is $3,000 ($18,000 – $15,000 basis in assets). Abe’s built in gain on the contribution is $5,000. The amount of gain allocated to Abe is the lower of the realized gain or built-in gain, so $3,000 is the allocation.

Why is the entire gain being allocated to gain and not being split among the other partners?

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[ahugemistake]

@watermelon goodluck tomorrow! I'd appreciate it if you can check in after the exam and share how you feel about it!

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[asdf]

@Watermelon


@Ahugemistake

Thank you all! now I understand!

[watermelon]

@Ahugemistake for your question, let's say if the asset was sold at 21,000, then 1,000 will be split by 3 partners and the built in gain of 5000 will be allocated to Abe. That's because final price – basis > Built in gain. but in this question, the gain of selling this asset is only $3,000 (18,000-15,000) which is not even enough to compensate the entire built-in gain for Abe. so he can get all of it, other partners won't share this gain with him. hope this helps:)

[Tncincy]

@watermelon and ahugemistake looks like you guys were having a good study session. Good luck watermelon, I hope you tell us how it went. I am going to give it a power study tonight since it is quiet and business seems to be slowing down a little. I can stand to stay awake a little longer. Good luck to everyone else….keep studying hard. 🙂

It begins with a 75
Been here too long as a cheerleader....ready to pass

[watermelon]

I almost cried today when I left test center! It was so brutal… when I worked on the last 3 sims, I was literally thinking should i just leave it blank and retake it next time… MCQ were okay. but i don't think I was positive of any of the sims…I spent too much time on Authoritative Literature… never felt like that for the other 3 exams. guys, all I have to say is pay attention to blaw, if you have time, do more sims on c corp, s corp, partnership… and don't worry too much about phase out amount…anyway… I GOT DEFEATED TODAY:(

[G]

@watermelon, so sorry to hear about your experience. I'm about to take REG too this coming Saturday — it's going to be my first exam. What review material did you use? Didn't you think it prepared you for your SIMS? How about for your MCQ'S? I'll be reviewing Ninja MCQ's for my last few days…

[watermelon]

@G I only used Becker. I didn't really practice any of the SIMS after each chapter in Becker. but I do think if i had time to practice SIMS, that will definitely help me to comprehend everything better. MCQ was broad, less calculation than i expected, just a lot details.

[watermelon]

sorry not so much useful information:(

[Author]

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