[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

[Heidi-O]

@icanhazcpa Life gets in the way of studying all the time! That's why it's nice to be on a board where people are going through the same stuff. Too bad you can't list your pets as dependents, they can be expensive!!!

@stokey45 Sorry to hear that you lost your credits, that must be frustrating. As far as telling you about what they test the CPA and the specifics, we can't tell you (those of us who have taken it). It's against the rules. Just make sure that you UPDATE your Becker material – even the 2013 book has updates that they needed to put in. And look at this way, at least you are learning all the new tax rules that have gone into effect this year! You'll be ahead on your own personal tax planning!!

Back to the notes and exam tests!! Wahoo!!! (facetious statement).

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[stokey45]

@Heidi-O

Thanks for the info and yes I understand someone who has taken the exam cannot share anything specific regarding the test.

What I wanted to double check with you was about the 2013 rules. I thought we would be tested on the 2012 tax rules. Just to be safe I will go back to the Becker website to make sure I have the most updated info. Thanks again.

[stokey45]

@Heidi-O

Thanks for the info and yes I understand someone who has taken the exam cannot share anything specific regarding the test.

What I wanted to double check with you was about the 2013 rules. I thought we would be tested on the 2012 tax rules. Just to be safe I will go back to the Becker website to make sure I have the most updated info. Thanks again.

[Anonymous]

Somebody confirm the answer to this questions for me…

Marvin exchanged a printing press used in his printing press business for a new printing press. The adjusted basis of the printing press he gave up was $15,000. The new printing press had a FMV of $8,000 and Marvin received $8,000 in cash. What was Marvins basis in the new printing press and how much gain must Marvin recognize on the transaction?

Here is my thinking..

Realized gain: his (original basis $15,000)-(new basis $8,000+$8,000 cash) = $1,000 realized gain. Recognized gain is the lesser of realized gain and boot received, therefore recognized gain is $1,000. Basis is his original basis $15,000 + recognized gain $1,000 – boot received $8,000=$8,000. So my answer is letter D below

Here were the answers,

A – Basis – $15,000 Gain – $1,000

B – Basis – $7,000 Gain $-0-

C – Basis – $16,000 Gain $-0-

D – Basis – $8,000 Gain $-0-

[Anonymous]

Somebody confirm the answer to this questions for me…

Marvin exchanged a printing press used in his printing press business for a new printing press. The adjusted basis of the printing press he gave up was $15,000. The new printing press had a FMV of $8,000 and Marvin received $8,000 in cash. What was Marvins basis in the new printing press and how much gain must Marvin recognize on the transaction?

Here is my thinking..

Realized gain: his (original basis $15,000)-(new basis $8,000+$8,000 cash) = $1,000 realized gain. Recognized gain is the lesser of realized gain and boot received, therefore recognized gain is $1,000. Basis is his original basis $15,000 + recognized gain $1,000 – boot received $8,000=$8,000. So my answer is letter D below

Here were the answers,

A – Basis – $15,000 Gain – $1,000

B – Basis – $7,000 Gain $-0-

C – Basis – $16,000 Gain $-0-

D – Basis – $8,000 Gain $-0-

[Anonymous]

And another general questions regarding recognized gain. If there are liabilities assumed and paid those are netted together, but if there is boot paid and received only the boot received is considered for the recognized gain correct?

[Anonymous]

And another general questions regarding recognized gain. If there are liabilities assumed and paid those are netted together, but if there is boot paid and received only the boot received is considered for the recognized gain correct?

[lbi18]

@dsteele139

As per your answer choices, shouldn't choice D read “Basis = 8,000; Gain = 1,000”?

Otherwise, none of those answers would be correct!

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[lbi18]

@dsteele139

As per your answer choices, shouldn't choice D read “Basis = 8,000; Gain = 1,000”?

Otherwise, none of those answers would be correct!

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[Heidi-O]

@Stokey45 Here is the information from the AICPA website. The July exam will be the 2013 amounts. But it is important to learn the concepts and how it works, how to apply them and what impact they can have. You will see some of your review questions may ask: Disregarding any limitations, what amounts can be considered medical expenses.

https://www.aicpa.org/BecomeACPA/CPAExam/ExaminationContent/NewPronouncementPolicy/Pages/new_pronouncements.aspx

@dsteele139 Are you sure you have the correct amounts for the answers? I don't see the answer there!!!

The Realized gain is 1,000 and the boot received is 8,000 making the Recognized gain 1,000 (lesser of)

The adjusted basis of the new asset would be 8,000.

(Adj Basis of Property give up + Gain Recognized + Boot Paid – Boot Received = 15,000 + 1,000 + 0 – 8,000 = 8,000)

So the answer to “What was Marvin's basis on the new printing press and how much gain must Marvin RECOGNIZE on the transaction would be – 8,000 basis and 1,000 gain recognized. Answer D. 8,000; and 0 Is incorrect. Unless you forgot to type in 1,000.

You are correct on the last question part of the netted debts but they become part of the EQUATIONS for either Boot Paid and Boot Received:

Boot Received = Cash Recv'd + FMV of Non Like Kind Asset Recv'd + Net RELIEF from Debt

Boot Paid = Cash Paid + FMV of Non Like Kind Asset Given + Net ASSUMED Debt

It's made up of equations inside of equations. Make sense?

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[Heidi-O]

@Stokey45 Here is the information from the AICPA website. The July exam will be the 2013 amounts. But it is important to learn the concepts and how it works, how to apply them and what impact they can have. You will see some of your review questions may ask: Disregarding any limitations, what amounts can be considered medical expenses.

https://www.aicpa.org/BecomeACPA/CPAExam/ExaminationContent/NewPronouncementPolicy/Pages/new_pronouncements.aspx

@dsteele139 Are you sure you have the correct amounts for the answers? I don't see the answer there!!!

The Realized gain is 1,000 and the boot received is 8,000 making the Recognized gain 1,000 (lesser of)

The adjusted basis of the new asset would be 8,000.

(Adj Basis of Property give up + Gain Recognized + Boot Paid – Boot Received = 15,000 + 1,000 + 0 – 8,000 = 8,000)

So the answer to “What was Marvin's basis on the new printing press and how much gain must Marvin RECOGNIZE on the transaction would be – 8,000 basis and 1,000 gain recognized. Answer D. 8,000; and 0 Is incorrect. Unless you forgot to type in 1,000.

You are correct on the last question part of the netted debts but they become part of the EQUATIONS for either Boot Paid and Boot Received:

Boot Received = Cash Recv'd + FMV of Non Like Kind Asset Recv'd + Net RELIEF from Debt

Boot Paid = Cash Paid + FMV of Non Like Kind Asset Given + Net ASSUMED Debt

It's made up of equations inside of equations. Make sense?

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[Heidi-O]

Essentially, just speaking of the netting of debt parts, if I offered to pay your college loan for $200,000 if you agree to pay my car loan for $10,000, would you take it? Of course you would, because you would be coming out $190,000 ahead!

That becomes part of boot received.

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[Heidi-O]

Essentially, just speaking of the netting of debt parts, if I offered to pay your college loan for $200,000 if you agree to pay my car loan for $10,000, would you take it? Of course you would, because you would be coming out $190,000 ahead!

That becomes part of boot received.

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[silliepanda]

Soooo getting VERY nervous about my exam on Monday. Still have some weak areas that I wish were stronger. To top it off .. I found out today I have allergic pink eye! SERIOUSLY! When do I catch a break … AHHHHH. Time to get some coffee and get some catch up done here. How is everyone doing?!

BEC - TOO MANY FAILS TO LIST! July 2015 I WILL GET IT!
AUD - AUG 2015- NEVER PASSED!
FAR - LOST CREDIT
REG - PASSED

[silliepanda]

Soooo getting VERY nervous about my exam on Monday. Still have some weak areas that I wish were stronger. To top it off .. I found out today I have allergic pink eye! SERIOUSLY! When do I catch a break … AHHHHH. Time to get some coffee and get some catch up done here. How is everyone doing?!

BEC - TOO MANY FAILS TO LIST! July 2015 I WILL GET IT!
AUD - AUG 2015- NEVER PASSED!
FAR - LOST CREDIT
REG - PASSED

[Author]

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