[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

[Holly]

I read the overview and it was pretty much some corrections and additional AICPA released stuff.

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

[mo3athn]

Hey All, small question what does status of ATTReady mean? is this something before the issuance of the NTS?

[BBHYX]

Hey guys, I have a question about partnership nontaxable liquidations. I see that after subtracting the cash withdrawn from your basis, you allocate the remaining basis to assets withdraw. How is this allocation done with multiple assets? Is it pro-rata based on adjusted basis? or FMV?

Thank you!

[CPA so close, so far away]

That's a very good question. I have not come across a question like that. Here is a link to the IRS website that offers some guidance and examples.

https://www.irs.gov/publications/p541/ar02.html#en_US_201601_publink1000104336

[Holly]

@xyz107 pro-rata

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

[dave]

@holly do you know where to print out the 2017 AICPA exam questions? Becker says its printable in the home page of each section, but I don't see it… Haaaaalp

Thanks!!!

[dave]

Never mind it showed up after i refreshed a couple of times.

[Holly]

@dave sorry, just sitting down again

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

[BBHYX]

@Holly my concern was if it's pro rata based on adjusted basis or FMV of the assets specifically. The MCQ problems always only have 1 asset, so that is easy. If it showed up as part of a sim, I feel like there would definitely be multiple assets to allocate to. Do you have any idea?

@CPA so close — I have looked at your link but I still don't really know an answer to my question. I am not sure if it's because the answer isn't in there or I am not good at understanding “tax jargon”

[gguzman]

In an effort to protect me from myself, I erased the answers of my SIMS. I kept making excuses not to do them, which probably means there's a lot that I could learn from them. Now I have to do them.

Here we go.

[CPAIN2K17]

Good luck tomorrow @Holly! You'll do great!! Let us know how it goes!

[Holly]

The CSU partnership distributed to each partner cash of $4,000, inventory with a basis of $4,000 and a fair market value (FMV) of $6,000, and land with an adjusted basis of $5,000 and an FMV of $3,000 in a liquidating distribution. Partner Chang had an outside basis in Chang's partnership interest of $12,000. In the second year after receiving the liquidating distribution, Chang sold the inventory for $5,000 and the land for $3,000. What income must Chang report upon the sale of these assets?

A) $0 gain or loss

B) $0 ordinary gain and $1,000 capital loss

C) $1,000 ordinary gain $1,000 capital loss [correct answer]

D) $1,000 ordinary gain $0 capital loss

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

[Holly]

@cpain2k17 thanks!

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

[Holly]

For some reason those dang Keough plan questions just get me!

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

[CPAIN2K17]

@Holly

So, their basis in the inventory(hot asset) was $4,000 and they sold for $5,000 which is the $1,000 ordinary gain, and their basis in the land was $4,000 and they sold for $3,000 which is the $1,000 capital loss?

[Author]

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