[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[jfernandes256]

Securities exemption from 1933 Registration:

-Banks and savings and loans

-Not for profit Organizations

-Government

-Regulated common carriers (i.e. railroads)

-Short term commerical paper (notes, bonds, etc.) with a maturity date of nine months or less

-Insurance policies

-Ch. 11 Bankruptcy

-Church plan or similar enity that is not an investment company

[Anonymous]

@jfern–But they wouldn't be issuers, right? The question makes it seem like not all companies that issue securities have to report to the SEC. Those companies above wouldn't issue securities at all, right? Is that what the “exempt from securities” means?

[Anonymous]

Which is taxable?

a. Interest on [SGO] State Government Obligations

b. Tax-Exempt interest income from investments in municipal bonds

c. Interest on State Income Tax Return

d. Interest on [LGO] Local Government Obligations

[Anonymous]

@Amor–what was the answer to your last question? I googled both but couldn't find which one was taxed when granted versus when exercised.

[Amay]

@mama Answer: C?

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

@mama they are exempt from registration – aka filing a registration statement with the SEC, doing a prospectus, etc.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[jfernandes256]

@CPAMommyof3 Securities can include stock options and warrants in addition to debt (bonds, notes, loans, mortgages) and stock. Therefore, when the government issues bonds it's technically a security. However, the government does not issue their securities with SEC. This is what I am thinking.

[Anonymous]

The partnership question is actually answer A: “Generally, a partnership agreement is not required. As long as there is no dispute between the partners, it is not necessary to have an agreement in writing because partnership profits would not be equally divided, in an oral arrangement because the partners had explicitly agreed to do business together, or in an oral agreement because the partnership did not deal in real estate. The planned termination of a partnership is unusual and would necessitate a partnership agreement. For the agreement to be enforceable, a written agreement is required under the statute of frauds.” I chose D 🙁 In case you guys couldn't tell I was in the middle of a BLaw quiz when we started so I've been posting the questions I was getting wrong.

[Amay]

@Amor I would say #1 non-qualified is the answer but I am just guessing.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

Ohhhh. Thanks guys.

[Amay]

Ugh I remember always missing those Statute of Frauds questions! Here are the rules on that:

Under SoF, contract must be in writing if

-selling good for more than $500

-contract is for more than 1 year

-real property/securities sale

-promise to answer for debt of another

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

I have the $500 and the real estate committed to memory. I always forget about the >1 year rule. Thanks for posting that!

[Anonymous]

Terry recently started a new business and is trying to decide what type of entity to form. Terry is part-owner and is active in running the business. What type of entity would best protect Terry, as one of the owners, from personal liability?

General Partnership

Limited Partnership

Joint Venture

Limited Liability Company

[Amay]

@Amor those are tough! I don't see how any of the other answer choices could be taxable income other than B, even though it says tax-exempt. The others would be deductions, if allowed. Would love an explanation! 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[jfernandes256]

@CPAMommyof3 I am going with LLP.

[Author]

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