[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for REG. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[TXJAM]

Where is the list of items that aren't being tested any longer? I feel I'm going nuts looking for it….

[mo3athn]

@melk89 you never know what will happen with the score, i had the same feeling when i did BEC exam and i was 90% sure that i will fail but i passed with 81 score. I think if you study for audit now till they release the score of REG would be better.

[cpaninja92]

my exam is in a week and i'm starting to panic because I didn't spend enough time on blaw… is the difficulty level on the actual exam for blaw questions comparable to becker or wiley mcq?

[afkg]

I'm not sure I understand the answer choices on this question from Becker, R4. Why isn't $50,000 an option (10% of pre-charitable contribution taxable income)?

Tapper Corp., an accrual basis calendar year corporation, was organized on January 2, Year 1. During
Year 1, revenue was exclusively from sales proceeds and interest income. The following information
pertains to Tapper:
$500,000 – Taxable income before charitable contributions for the year ended December 31, Year 1
$10,000 – Tapper's matching contribution to employee designated qualified universities made during Year 1
$30,000 – Board of Directors' authorized contribution to a qualified charity (authorized December 1, Year 1,
made February 1, Year 2)

What is the maximum allowable deduction that Tapper may take as a charitable contribution on its tax
return for the year ended December 31, Year 1?

A. $0
B. $10,000
C. $30,000
D. $40,000 – Correct Answer

[YALA112]

$50,000 will be the max amount that can be deducted as charitable contributions, but only $40,000 was paid in that year; hence, the correct answer is $40,000. Hope that helps.

[passantsalama]

From my understanding, the maximum allowed deduction is 10% of the taxable income limitation rule but what actually deductible in year 1 dec 31 is equal to 30,000 plus the 10,000.
In some simulations, the general rule is the LESSER of the 10% taxable income before the charitable deduction amount OR the amount of charitable deduction.
Hope that helped 🙂

[lilJT24]

Does anyone know for sure if negotiable instruments will be on the new exam or not?

Becker removed this material from their program but it's still coming up in Ninja questions.

[lilJT24]

Does anyone know for sure if negotiable instruments will be on the new exam or not?

Becker removed this material from their program but it's still coming up in Ninja questions.

[Nikki]

If a partner contributes property to a partnership, there is no G/L. But what if the partner sells property to the partnership is that treated the same?

[Brains&Gains]

@Nikki87

I believe that by selling you mean the partner is receiving cash in return for the asset in which case that amount of cash received would be considered “boot” and the partner would have to recognize that amount as Gain and would be taxed on it.

Is this correct? Can someone please correct me if im wrong.

[afrieband16]

Can someone please explain why the answer isnt D and is B? My test is in a week and I am trying to make sure I fully understand partnership distributions

Partnership JKL has decided to liquidate. Partner J's adjusted basis in the partnership is $55,000 and he received only equipment (FMV $55,000, adjusted basis to the partnership of $40,000) in complete liquidation of his share of the partnership. What is the amount of gain or loss Partner J will recognize on his personal tax return?

A.
Gain of $15,000

B.
Partner J may not recognize a loss on the liquidation of the partnership.

C.
Loss of $15,000

Incorrect D.
Partner J will not recognize a gain on the liquidation of the partnership.

You answered D. The correct answer is B.

The rules for liquidating distributions for a partnership are as follows:

If a partner receives cash or marketable securities (cash equivalents) in excess of the partner's adjusted basis, then gain is recognized on that excess.
If no cash equivalents are distributed, no gain is recognized.
If a partner receives cash, unrealized receivables, or inventory in a liquidating distribution, a loss may be recognized by the partner equal to the difference between FMV and the partner's basis.
If only other property is received, then no loss may be recognized.

I could have sworn it was B. This partner is not receiving any cash (monies) and therefore cannot recognize a gain. I'm confused why D is the incorrect answer. Please help!

[TXJAM]

Psychological question:

Do yall think there is a psychological benefit to changing Ninja MCQ questions from 30 to something less? I'm trending 63-66%. I think there's a mental thing where seeing the below 75% is getting to me.

I'm curious to see what you guys think.

I want to get to the next level. When i review my notes, i feel like “i know” this, but i'm not seeing it reflected on the MCQs.

Mostly i'm struggling with:
– 1933 / 1934
– Professional questions

[Kaitlin2424]

I'm using Becker to study, how do people feel it prepares them for the new exam? I take reg 5/30, I'm strong on the tax concepts and calcs but not ethics and the conceptual stuff.
I miss having the released AICPA questions, I found those helpful in the past. Is there anything out there similar? Becker has cheaped out in the software, they used to provide study guides and a link to the AICPA questions but I cant find it in the newer version.

I almost passed all 4 last year using Becker but failed the 4th and then lost credit for another…

Thanks!

[mashloum]

Hi Kaitline2424
NO THOUGHT that Gleim is the best choice for this matter, I have seen Yaeger, and Wiley, even Lambert and I conclude that Gleim is the best for the TBS and the number & quality of MoC

[CPAIn2018]

How difficult is this exam? I mean relative to FAR. Any one who sat for the new format? How many DRS?

[Author]

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