[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for REG. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your REG exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

[Anonymous]

I know this is total BS-but I was able to do all 5 of the AICPA sample test MCQ questions correctly! 🙂 Yay me:) LOL!

[cmashambe]

Hi guys! Currently studying for REG and I will be taking it July 5th. I am having a real hard time with the simulations where you have to use the authoritative literature. I do use the search bar but seem to always get the wrong answers or not be able to find it out at all. I use the Becker vision because the one on this is too confusing. Let me know if you have any tips on figuring it out.

[jtvande]

I have the same issue. I do well on the MCQ but have a hard time sorting through the information on the TBS and DRS questions.

[Julia]

@appy thank u. That helps.

@Anya : that's great!

[Julia]

Confused! I thought ninja made it clear . always NBV even if less than 80%
Porter, the sole shareholder of Preston Corp., transferred property to the corporation as a contribution to capital. Two years later, Corley transferred property to the corporation in exchange for a 10% interest in corporate stock. The property transferred was valued as follows:

Porter’s Transfer Corley’s Transfer
Basis $50,000 $250,000
Fair market value 200,000 500,000

What amount represents the corporation's basis in the property received?

$700,000
$550,000
$450,000
$300,000

You answered D. The correct answer is B.

When property is transferred to a corporation, the basis of any property received is the fair market value (FMV) at the time of the transfer. Porter's transfer two years ago had an FMV of $50,000, but the current FMV does not have an impact on the corporation's basis in the property. The basis in Corley's contribution is the current FMV, and their basis in the property does not affect the corporation's basis. The total basis in property contributed to the corporation is the $50,000 original contribution (FMV) from Porter, plus the $500,000 current contribution (FMV) for Corley, which equals a total of $550,000.

Question #: 1550 Category: 6C4 Entity/Owner Transactions, Including Contributions and Distributio

[passantsalama]

Did any solve simulation no 2 in the corporate taxation about the net operating loss (new released one)?? I dont get it

[CPAIn2018]

@Julia

Not ALWAYS. If less than 80%, the transfer would be considered as a sale (because, the transferor does not have a say on the property). Hence, use FMV.

[Holly]

@passantsalama Which software?

BEC - 79
REG - 85
AUD - 5/27/16

[CPAIN2K17]

Would it be common to get a sim where we are asked to fill out tax forms? I haven’t seen any sims like that in Wiley and while the lessons do tell you which tax form applies to the lesson, there is rarely anything about filling out the actual form. Just curious if this is something I should practice doing or not?

[Julia]

What am I missing? How is this not a counter offer?

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:

win, because Blue effectively accepted Silk’s offer of July 1.
win, because Silk was obligated to keep the offer open for the 30-day period.
lose, because Blue sent the July 15 telegram
lose, because Blue used an unauthorized means of communication.

You answered C. The correct answer is A.

Blue will win the breach of contract, because Blue effectively accepted Silk’s offer of July 1. For a contract to be valid, it must contain an agreement (mutual understanding), consideration, and legal purpose, and have competent parties. The contract between Silk and Blue is considered an option contract. This contract keeps an offer open until the agreed-upon time period. In this case, the agreed-upon time period is 30 days from July 1. Silk received the offer from Blue to buy the building at $80,000 on July 29. Therefore, the option contract started on July 1, and running through July 30 gives Blue the advantage.

Question #: 1600 Category: 2B1 Formation

[Holly]

@CPAIN2K17 I would say yes there is a good chance we'll be asked to partially fill out a return

BEC - 79
REG - 85
AUD - 5/27/16

[CPAIN2K17]

@Julia asking a question is not a counteroffer

[Holly]

I answered counteroffer too. The question makes so much sense! I hate blaw

BEC - 79
REG - 85
AUD - 5/27/16

[hawk77]

Ugh, I've been on REG for 3 weeks on still on BLAW/Ethics. Seems a waste of material for 20% of the exam weight! I'm ready to get to TAX already…. Sigh.

FAR - April 5, 2016
AUD - May 28, 2016
REG - TBD
BEC - TBD

[Operation_CPA]

Guys – currently going through Becker Chapter 2 and it says in the text, “Tuition and Fees deduction” – Expired 12/31/2016. Why is this even in the book if it is expired? Am I missing a new version?

@hawk77 From my experience w/ these exams, that 20% could be 50% on your particular exam. You really never know because each test is entirely different – so I wouldn't look at it as a waste of time! Just look at everything with an even playing field.

[Author]

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