[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

[oreoblast]

@jb I would agree with Becker on this one. Kent would recognize a gain on the distribution of $50,000, causing there to be a total of $110,000 in current E&P. Add that with Accumulated E&P of $125,000 and there is enough total E&P to make the full distribution a dividend. There is no return of capital.

[Lou]

@JB there is one key difference in the two problems that make both NINJA and Becker correct. This is that Ninja states current e&p includes the “effects of this distribution” while Becker does not.

Hence, the current e&p for the Ninja problem starts at $10,000 and goes up to $60,000 due to the distribution. The Becker problem starts at $60,000 and goes to $110,000.

[oreoblast]

@lou Agreed! Did not catch that.

[JB]

@lou @oreoblast Thank you for responding.


@lou I definitely did not catch that!

[Anonymous]

@oreoblast-good luck on Saturday! It sounds like you are ready! I am pretty burned out as well-felt the same before BEC where I felt like if I had one week less would be better. At this point, just trying to review the weaker areas that might pop up in progress tests and doing BLAW MCQ in Ninja… while re-reading Becker text book..(blah!). So ready for it to be over! I scored 64 on the first mock exam and 72 on the 2nd one..Totally failed on BLAW on the second one but did well on the SIMS. the 2nd test was much easier than the first… But I did those over 4th of July so almost 2 weeks ago now…

[pcunniff]

Can someone explain the differences between form 1041 and form 706 for estates? It seems like they are the same thing.

[Lou]

Estates are subject to two separate taxes: Income tax (1041) and Estate tax (706). Income tax is due annually so the 1041 may be filed more than one time while the 706 is filed once since it is a one-time-only transfer tax.

[oreoblast]

Anyone going through Becker chuckle at MCQ #06524?

Which of the following terms best describes the relationship between a corporation and the CPA it hires to audit corporate books?

A. Employer and principal
B. Employer and independent contractor
C. Master and servant
D. Employer and employee

lol

[Lou]

For purposes of PHC rules, a former spouse is not considered a family member (which makes sense) but for S corporations they are. Has anyone seen any other instance with an odd rule for a former spouse such as this one?

[Andria – Another71]

BEC Test Your Might – Be sure to answer in the FB thread to be eligible to win!

[Vyhunter]

What Chapter and module

[StayMelo2]

Looking for some advice on the best way to study for the business law section of REG. I have the tax chapters down, really just struggling with the law part since its so much memorization/information. Anyone have any methods they use that helped them out (ex. Ninja Notes, Hammering as many MCQs as possible, etc.)

Thanks!

[CPA so close, so far away]

Hey Becker and Ninja MCQ users.

Does anyone know if the amount of UCC questions in Ninja are no longer testable? For example, Becker's textbook describes UCC on page 16 of R7 and basically says we don't need to know specific rules for UCC sales contracts. I saw another poster note this discrepancy also.

[Holly]

@CPA so close The only thing I know is that the list of Do Not Study that is on NINJA takes away UCC Negotiable Instruments and Documents of Title and Title Transfer.

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

[Anonymous]

@CPA so close-I am going by what Becker said and have excluded the Sales Contracts from studying when I did BLAW in Ninja along with the two Holly mentioned…

[Author]

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