[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/

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

[wakefern58]

@Michael_Scarn – I don't recall that being covered in the Individuals section of Becker but I feel like it may be covered in
small portion of the Business Law but I haven't full blown got into the B-law section yet. While I am always a fan of seeing all the MCQ possible, the only downfall is you start questioning certain items not covered in your main review course.

[wakefern58]

Hi All – Question about partnerships.

If a partnership purchases an asset with partnership funds for 10K cash with a 40K mortgage, then each partner's basis will increase as a result of the 40K mortgage based on their % interest. BUT what would the Partnership's inside basis on the asset be? Would it be the 10K caash PLUS the 40K for a 50K inside basis to the partnership on the asset?

[Julia]

@wake I just did a similar question. But the assets were contributed when the partnership was organized. The answer was the nbv of the asset. The liabity was not considered. It is my understanding liabity is just the partners basis because they r the ones who owe it. Since the partnership is not an taxing entity.

[Julia]

@scarn (love the name!) I Answer the questions and study that material there. I don't go into it in the materials. I have not really seen it anywhere. I figure it is good to see it. But I don't skip them. In referance to employment stuff.

[Jsn3004]

@Holly I guess i'll just have to remember that, because just by reading the definitions, I don't think it makes sense. But i'm sure alot of stuff doesn't make sense and you just have to remember it.

[Julia]

AICPA PRACTICE TEST
Ok so it took me a while.

On Sim 2:
Line 3 I agree w the 75% of the exp of gas+insurance +repairs. 75% of total use was business.
Line 4 ??????
Line 5 ??????

On Sim 3:
line 2 u add sal +repairs +marc dep +pr tax +insurance +rent
Line 3: interest -charity did-cap loss (cuz pass thru)
Line 4: neg (penalties and fines)
Line 5: incom line 2 -line 3 -line 4 + Ben amt (100,000)- distributions
Line 6: ben amt 60k -half of Ben amt 50k +half of line 5

On Sim 5:
Line 1: ??????
Line 2: val on invoice
Line 3: value on invoice less extended warranty
Line 4: value of truck 32300 less (trade in 9000 – (value of 18125 less dep 16037)

[Julia]

I'm freaking out! The AICPA practice Sim killed me on some. I got some wrong for stupid reasons & figured out why.
Did difficult AICPA questions and did ok. Killed the moderate questions.
I test Monday and am praying God helps me remember everything I need.

[Holly]

@Julia now y'all have me wondering about these sample tests. I'm looking right now.

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

[Holly]

@Julia I really need to go back and look at depreciation but I think I have the land question on Sim 5.

It's is an involuntary conversion with no gain recognized = basis same as old asset. The two properties are Parkway (basis $63,000) and Wayside, so Wayside will take the $63,000 basis with an additional $763 because of the increase of the amount invested over the offer ($72,563 – $71,800).

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

[Holly]

I don't know if I should say basis over their offer, more than boot paid over the gain realized.

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

[Julia]

@holly thank u. That makes sense. I feel much better today.

[cmashambe]

I know someone mentioned this before and I cannot remember if there was an answer. I have been now just working through questions, reviewing material etc. (Test July 5). I have been getting frustrated with NINJA giving me material that is clearly not on REG, is there a way to not get those questions? Been just working with the NINJA simulations (new questions) and the Becker questions.

[Holly]

@chilfufa when you say clearly not on REG, what do you mean? There will be questions asked that overlap with other sections.

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

[cmashambe]

@Holly

Questions that are not covered in the material anywhere at all. Questions that really have to do with audit as well is what I've been finding.

[Holly]

@chilufya you'll probably see some on your test. I assume and hope those are practice but who really knows.

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

[Author]

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