[Q3] REG Study Group 2014 - Page 95

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  • August 28, 2014 at 1:34 am #592039
    JamesBJames
    Participant

    Also, can someone explain this to me? This is a question from the first Becker practice exam:

    Cox engaged Datz as her agent. It was mutually agreed that Datz would not disclose that he was acting as Cox's agent. Instead he was to deal with prospective customers as if he were a principal acting on his own behalf. This he did, and he made several contracts for Cox. Assuming Cox, Datz, or the customer seeks to avoid liability on one of the contracts involved, which of the following statements is correct?

    A) The third party can avoid liability because he believed he was dealing with Datz as the principal.

    B) Datz has no liability once he discloses that Cox was the real principal.

    C) The third party may choose to hold either Datz or Cox liable.

    D) Cox must ratify the Datz contracts in order to be held liable.

    The answer is C. I thought that if the agent is working for an undisclosed principal, only the agent can be held liable (EDIT: I'm wrong). If the principal is disclosed, then the third party can hold either the principal or the agent liable (EDIT: Also usually wrong). The answer mentions something about the “principal's identity being discovered by the third party,” but where in the world does that assumption come from?

    FAR: May 1st, 2014 - 91
    AUD: May 29th, 2014 - 97!
    BEC: July 16th, 2014 - 91
    REG: August 29th, 2014 - 88

    Licensed December 2015

    Feel free to add me on LinkedIn by clicking my username!

    August 28, 2014 at 2:05 am #592040
    Jsmith87
    Member

    As long as the agent acted within their authority, then the principal is liable, regardless of disclosure status. – from Wiley book

    August 28, 2014 at 2:11 am #592041
    JamesBJames
    Participant

    Oh shoot, you're right. I must have written it down wrong in my notes. On R8-21, Becker says something similar: “The principal is bound if the agent had authority. It is irrelevant whether the principal was disclosed, partially disclosed, or undisclosed.” Thanks!

    FAR: May 1st, 2014 - 91
    AUD: May 29th, 2014 - 97!
    BEC: July 16th, 2014 - 91
    REG: August 29th, 2014 - 88

    Licensed December 2015

    Feel free to add me on LinkedIn by clicking my username!

    August 28, 2014 at 2:12 am #592042
    Jsmith87
    Member

    No thank you! I just looked it up and learned from your question. Haha

    August 28, 2014 at 2:49 pm #592043
    ala72
    Participant

    I've studied for about 120 hours for REG so far and I take the exam tomorrow and I feel like I'm going to vomit. My boss has been amazing about letting me study at work and take the day off for the exam and if I fail it, I feel like I'll be letting him down (or at least make myself look foolish). I'm going over my NINJA notes right now and I read a topic and think “OMG! I don't remember how to do that!” My brain is completely shutting me out. I feel like I can't remember anything. I know it's stress and I just need to relax but I'm actually making myself nauseous at this point and I feel like I can't remember even the littlest things anymore. Besides a nice swig of vodka or a tall kahlua and milk, what should I do to relax and (calmly) review for my exam tomorrow morning?

    Licensed NH CPA as of July 2015

    AUD - 74 (Oct '13), 84 (Jan '14)
    FAR - 79 (Feb '14)
    REG - 61 (May '13), 81 (Aug '14)
    BEC - 79 (Nov '14)

    August 28, 2014 at 3:12 pm #592044
    Jsmith87
    Member

    My exam is Saturday. I am just going to read over the highlights and notes in the book. I don't think anyone can remember everything, but once you get to the test you will be able to spot the correct answers. After 120 hours you should be in good shape.

    August 28, 2014 at 3:43 pm #592045
    Jsmith87
    Member

    Question- can a CPA let a purchaser or prospective purchaser of the CPA's practice see confidential client information?

    I've read a that it is not allowed. And I've read that it is allowed. I just need a little clarification.

    August 28, 2014 at 4:07 pm #592046
    wjun15
    Member

    can a like kind exchange transaction happen between corporation and an indivdual? lets say shareholder gave a building and then the corporation gave him building and stock (or maybe not even stock, but just the building), is that a like kind exchange?

    August 28, 2014 at 4:34 pm #592047
    Jsmith87
    Member

    Wjun15. I haven't read anywhere that it is disallowed. So I'd guess that it is treated the same.

    August 28, 2014 at 5:07 pm #592048
    Reasonable Assurance
    Member

    Jsmith87- Yes, the CPA firm can show the prospective buyer workpapers, but is not allowed to hand them over without the client's consent.

    August 28, 2014 at 7:03 pm #592049
    JamesBJames
    Participant

    Becker's practice exam #2 wasn't bad at all. Got 23/24, 21/24, and 17/24 on the testlets for 84.7% on the MCQs and I think around 85% for the SIMs. I think I know why there weren't many business law questions on practice exam #1 — they were all here instead for whatever godawful reason.

    I feel pretty good about my chances going into the actual exam tomorrow. =)

    Good luck, everyone.

    FAR: May 1st, 2014 - 91
    AUD: May 29th, 2014 - 97!
    BEC: July 16th, 2014 - 91
    REG: August 29th, 2014 - 88

    Licensed December 2015

    Feel free to add me on LinkedIn by clicking my username!

    August 28, 2014 at 7:26 pm #592050
    Jsmith87
    Member

    Ok. So they can only show a prospective buyer client info if the client gives consent. Thanks.

    August 28, 2014 at 7:26 pm #592051
    Jspann225
    Member

    @jamesbjames I just took the second Becker practice exam and scored an 82% on my second practice exam. Although, I don't feel the reg practice exams for reg are indicative of how much I actually know.

    I am getting destroyed in the interpretation of a lot of the questions.

    FAR - 93 - 7/1/14
    AUD - 94 - 7/25/14
    REG - 92 - 8/30/14
    BEC - 89 - 10/6/14

    August 28, 2014 at 7:35 pm #592052
    JamesBJames
    Participant

    @Jspann: Nice. That's a really solid score. I think 82% is right around what my average came out to be, and if I use the regression analysis statistics I made a while back, that corresponds to about a 90 or so as the prediction on the actual exam. Statistically speaking, we're both in great shape.

    Do you feel confident though, out of curiosity? I just feel like there's so much little minor stuff that slipped its way through the cracks or that I might not remember completely on test day.

    FAR: May 1st, 2014 - 91
    AUD: May 29th, 2014 - 97!
    BEC: July 16th, 2014 - 91
    REG: August 29th, 2014 - 88

    Licensed December 2015

    Feel free to add me on LinkedIn by clicking my username!

    August 28, 2014 at 8:01 pm #592053
    Jspann225
    Member

    No, I don't really feel as confident as I have felt going into previous exams. There is a ton of small details and exceptions to remember. After I take the practice exams I notice that the majority of what I miss is due to very small details that I know, but may not think of at that second. It may be because of a lack of focus, but i really can't explain it.

    FAR - 93 - 7/1/14
    AUD - 94 - 7/25/14
    REG - 92 - 8/30/14
    BEC - 89 - 10/6/14

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