[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/

[Qlad]

cud someone pls explain the calculation in this question…

A and B had AGI 185000 together..A is active participant in company retirement plan but B is not. B contributes $4000 for IRA contribution for himself. how much contribution can he deduct.?

A. 4000

B 3200

C 2000

D 0

Answer is B. but can't understand the calculation…(4000*2/10)=800.is phased out ..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

I imagine this question has been asked and answered many times, but does anyone else find it odd how short the homework was for R1? I'm worried that there weren't enough questions included to test my knowledge on the entire chapter… there were lots of topics in the book not covered in the hw.

[Anonymous]

It's almost 1 am and I am SO LOST when it comes to Commercial Paper. Does anyone understand or have a way to clarify the differences between the terms such as maker, drawer, endorser, transferability of all this, acceptors of draft / note, and how the primary and secondary liabilities work? ……I've been stuck on 2 pages for over 2 hours………omg

[spartan14]

For anyone using Becker, thought I was all done with the homework and sims but logged on today to find out they just added more multiple choice and simulations from AICPA newly released in 2014! I would highly recommend checking it out if you haven't already

AUD- 99 (5/29/14)
FAR- 92 (7/3/14)
REG- 93 (8/22/14)
BEC- 94 (10/11/14)

[Tax lady]

@ Cricket. Commercial Paper was tough for me at first too mainly because this is something that you really don't use daily (or ever?). The way I remembered it was I took the “p” in paper to remember Promissory notes, then remember drafts. When I think of notes, as in Promissory notes, I remember CD's (as in music). Sort of like musical notes in a CD. This probably sounds completely insane to everyone but me. Ha! Anyway, for drafts think of checks. There are three parties for drafts. When you write a check, you are the drawer, the bank is the drawee and the person you are writing the check to is the payee….3 parties total. Jeff's pneumonic in the notes says to think of the drawer as yourself because you keep the checkbook in your desk “drawer” and from there you can remember the other parties. There are two parties for promissory notes..the maker and payee. Promissory notes and CD's are payable in the future and checks are payable now (on demand). Drafts can be payable at a specified time (time draft) or now (sight draft). Endorsers are those whom endorse the checks (order paper). If someone endorses a check and transfers negotiability by making it payable to someone else then it becomes order paper. If they endorse the back and do not name a new payee then this is considered bearer paper. To negotiate bearer paper there must be delivery only, for order paper there must be delivery plus endorsement. For notes the primary liability is on the maker and secondary is endorser. For checks there is no primary liability and secondary liability is on the drawee (bank). The only time there is a primary party held liable on a check is when the bank certifies the funds in the form of a certified check. In that case they are primarily held liable. I hope this helps…but if it makes you feel any better when I first studied this stuff I thought it was the devil and after reviewing it often, it's not so bad now. 🙂

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[spartan14]

@Cricket This is my understanding of the material…

-Maker applies only to two party commercial paper (a note).

-Drawer applies only to three party commercial paper (a draft).

-Endorser is anyone who signs the back of commercial paper or document of title.

-I'm going to assume by transferability you mean negotiability. Whether an instrument is negotiable is determined by the face/front of the paper. The endorsements on the back determine requirements and possibility for further negotiation (i.e. order-delivery and endorsement required, bearer- requires only delivery, or a break in the chain preventing further negotiability but not destroying negotiability altogether)

-The examples I have seen for acceptance all apply to three party commercial paper/draft. I believe only a drawee can accept. Acceptance can be accomplished by signing a draft or certifying a check (check certification only available to banks since they must be drawee).

-For notes, the maker is typically primary liable and endorsers are secondarily liable. For a draft, the drawer and any endorsers have secondary liability. The drawee is primarily liable ONLY if they accept. When they do accept, it discharges all prior parties. The drawee can be held liable to the drawer if they refuse to pay.

AUD- 99 (5/29/14)
FAR- 92 (7/3/14)
REG- 93 (8/22/14)
BEC- 94 (10/11/14)

[Anonymous]

@Spartan,that's my understanding as well. I was actually cranking out MCQ's on commercial paper, when I was going to come here an vent about those topics.

Is it me, or is REG waaaaaay more trickier than AUD? The terminology for REG is very confusing. When I think I understand a topic, I get a MCQ that has a different solution based on some other sub-section of the UCC, which of course undermines what I thought I knew.

13 more days. 13 more days.

[spartan14]

@CMaxwell I think REG is way harder than AUD and even harder than FAR as well. It might be due in part to the fact that the Becker book for REG leaves a ton out, but there's just a lot of random b law stuff that won't stick for me.

I have been trying to figure this alternate valuation date out but for some reason I just can't find something that makes it clear to me.

I understand that the alternate valuation date is earlier of date of distribution or 6 mo. after date of death, but in my book it says next to alternate valuation date “only if decreases both estate value and tax.” So does that mean even if the alternate valuation date is elected you only use that value if the FMV is lower than that at the date of death? And would it make a difference if it was something withheld as part of a gross estate or given as an inheritence?

All of the examples I've seen the FMV at alternate valuation date was lower than at date of death, I just need to know if it makes a difference if the FMV at the alternate valuation date is higher than FMV at date of death. Was anyone able to get clarification on this?

AUD- 99 (5/29/14)
FAR- 92 (7/3/14)
REG- 93 (8/22/14)
BEC- 94 (10/11/14)

[iddyrashy]

I agree with spartan14 REG is the hardest exam. I am thinking about reschedule exam. I have been studying for 4 weeks and it doesn't seems easy.

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[Dan T]

Can someone shed some light on this BL questions

On July 1, Silk, Inc., sent Blue a telegram offering to sell Blue a building for $80,000. In the telegram, Silk stated that it would give Blue 30 days to accept the offer. On July 15, Blue sent Silk a telegram that included the following statement: “The price for your building seems too high. Would you consider taking $75,000?” This telegram was received by Silk on July 16. On July 19, Tint made an offer to Silk to purchase the building for $82,000. Upon learning of Tint’s offer, Blue, on July 27, sent Silk a signed letter agreeing to purchase the building for $80,000. This letter was received by Silk on July 29. However, Silk now refuses to sell Blue the building. If Blue commences an action against Silk for breach of contract, Blue will:

A.

win, because Blue effectively accepted Silk’s offer of July 1.

B.

win, because Silk was obligated to keep the offer open for the 30-day period.

C.

lose, because Blue sent the July 15 telegram.

D.

lose, because Blue used an unauthorized means of communication.

The correct answer is A.

To create a contract, the offer must be accepted before a termination of the contract. A counteroffer is a rejection of the original offer followed by a new offer. Since Silk accepted the new offer, the counteroffer is a new contract.

Like how?? The explanation just confuses me more, he didn't accept it until July 29. Also if a counteroffer is a rejection why was the original contract still in play

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[oceansister]

Hi guys 🙂

I am new here…but LOVE reading your posts 🙂 Taking REG 08/30/14…scared.

Would anyone be so kind to post a link to newly released CPA questions by AICPA? I saw it a couple of days ago and can't seem to find where….Thank you ! 🙂

[Dan T]

You can go to scribd

For the other years just search “2012 AICPA newly released questions” or whatever year

Although I just noticed they dont have explanations, not sure how much it will help. maybe you should check out Ninja MC, they have a lot of the questions from the previous released AICPA questions

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[oceansister]

@Dan T-Thank you !!! 🙂

[Anonymous]

@Dan T, here's my take on the question…

Starting with the answer choices, working backward:

D: There was no communication method stated, so telegram is acceptable.

C: The July 15 telegram was an inquiry NOT a counteroffer.

B: Silk was not obligated to keep the offer open for 30 days. I think notice given would be effective to close the offer.

Timeline:

July 1 – Silk offers to sell Blue building for 80k. Will keep offer open for 30 days.

July 15 – Blue inquires (but doesn't make a counteroffer) about lower price. Original offer still stands.

July 19 – Tint offers 82k but Silk's offer to Blue is still open.

July 27, rec'd July 29 – Blue agrees to 80k offer within 30 day period. Valid contract is formed.

The answer explanation is confusing to me as well – I don't see any counteroffers. Blue makes an inquiry and Tint makes an offer. There's no language indicating a rejection of the original offer, and therefore, no counteroffer.

[Tax lady]

I took the Wiley practice exam last night and got an overall score of 75. I got an average in MCQ of 78 and TBS was 71, however I finished with over an hour to spare so I think I need to utilize my time better on the exam and try to use more of the research function for the TBS. My test is tomorrow! Yikes.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Author]

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