[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

[Radez]

Holly, for what it's worth, the algebra of the Keogh plan deduction helped me understand it. It's capped at 25% of total salary less the deduction, so if you set up the formula where x is the contribution amount, it'd be x = .25(salary – x).
Divide by .25 to get 4x = salary – x. Or 5x = salary. x = salary / 5.

CPAIN, I agree with you on your solution. Outside basis is reduced by cash first, then inside basis of hot assets, then the left over is land, so his outside basis goes from 12k to 8k. Basis of inventory is 4k, so remainder is 4k allocated to land, since it's liquidating. Hot assets render ordinary income, land renders capital.

I took the exam in July, but I felt like I had the highest chance of failure on this one so trying to keep things fresh.

[Holly]

Well…I'm back. I thought the blueprint of question mix was what was reflected in my questions, Becker and NINJA prepared me for what I saw, the AICPA practice sims are exactly the types I saw on the exam…hmmm….I didn't run out of time and I feel pretty good about my chances. I think I stayed “legal” and honest!

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

[CPAIn2018]

@ Holly

Congrats on a such great exam experience and you deserve it as you are a super candidate.

I definitly say that you have prepared yourself well for the exam. You gave it time and did what one can do to tackle this exam. I am happy that it was upto your expectation.

once again congrats.

[CPAIN2K17]

@holly sounds like you did great! Congrats on *hopefully* being done!!

[Rrushi]

@holly what do you mean by AICPA practice sims? Do you mean like becker sims? or the AICPA released SIMS for 2017

[BBHYX]

Are mutual mistakes voidable? or void? Becker seems to change it's mind between the book and the MCQ answers???

[TiredofCoffee]

Hi guys,

It's time to start studying for REG. No test date yet, but I just took AUD and think I passed so I wanna get a jump on it. Only thing is I have 2015 Ninja Notes and 2015 Audio. I also have current Gleim, but I like the audio and want to play it in my car for months to come. Do you guys think having 2015 Ninja materials will hurt me with outdated info? I'm trying to spend as least as possible since I have been at this for a while and spent a lot already. Please help with ideas! Thanks!

[xinxin]

what do you mean by AICPA practice sims? can you post a link please?

[Holly]

https://www.aicpa.org/BecomeACPA/CPAExam/ForCandidates/TutorialandSampleTest/Pages/default.aspx

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

[gguzman]

No matter how many times I try to conceptually grasp how to add back the basis for wash sale losses I still can't get it.

Is there a good example somewhere or someway someone can explain it? It is not clicking.

thanks,

[jtvande]

I know we have already talked about it but I still cannot figure out the last answer on SIM #2 on the AICPA practice exam. Has anyone else figured it out.

I also cannot figure out the adjustment to the AAA account on question #3.

Has anyone been able to figure these out yet?

Thanks,

[CPA so close, so far away]

The way I think of wash sales is I make a timeline. I put the date of sale in the middle, and then put 30 days before the sale to the left and 30 days after the sale on the right. If a subsequent acquisition of shares occurs anywhere in that timeline, those shares serve as the disallowed portion of the loss. In essence the IRS is basically telling you to take that disallowed loss and add it to the basis of your shares. The increase of your basis kicks that loss down the road since an increase basis will likely cause you to recognize a loss in the future.

[pcunniff]

@Holly, how do you think you did on reg?

FAR- 79
BEC-79
AUD – 5/31/17
REG- 5/4/17

[Scared-cpa]

Can someone please explain the AMT tax to me, specifically exclusions and exemptions? I just cannot grasp this even though I have worked through almost all of Ninja MCQs now and my exam is Wednesday! I'm beginning to freak out. Someone, please help!

[Jsn3004]

Same question as @Summer. For some reason AMT is just one of those things that aren't clicking other than a few things like a preference or two and adjustments for Schedule A items.

Also…

Carson owned 40% of the outstanding stock of a C corporation. During a tax year, the corporation reported $400,000 in taxable income and distributed a total of $70,000 in cash dividends to its shareholders. Carson accurately reported $28,000 in gross income on Carson's individual tax return. If the corporation had been an S corporation and the distributions to the owners had been proportionate, how much income would Carson have reported on Carson's individual return?

A.
$28,000

B.
$132,000

C.
$160,000

D.
$188,000

Correct Answer: C. I put D. I put D because I did 400,000 x 40% and I added 28,000 in gross income. Why don't you add the gross income?

[Author]

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