[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/

[CPAIN2K17]

@CPATY They were a co-sureties for 50% (equal cosurities both for 120K), so even after the other surety is released, they are still a surety for their 50%. Since the remaining obligation is 90K, they are still liable for 50% of that, so 45K. I don't think it's really process of elimination.

[gguzman]

@CPA so close, so far away,

I got a 65%. Most of the lost points were from BLAW. I did better on the SIMS by around 20%. Now I know what to focus on. Lots of BLAW the next couple of days. I left a few sims open from the final review to keep tax polished.

[Anonymous]

@xyz107

I think answer D is incorrect as constructive fraud (gross negligence) doesn't require intent…

I've seen this question in Gleim, so I'll go check the explanation.

[BBHYX]

@cpain2017 I was saying the question she posted before could be solved more via process of elimination, the one without math involved. I had never seen the phrase reserving rights of a surety, but I was able to get that question right by eliminating the other choices

@cpaty many of the blaw questions can be solved via process of elimination. Sometimes, I see questions where the right answer was not covered in my review material, but three of the other answers are obviously wrong because they were covered in my material. For blaw questions where there is no math/all application of concept, sometimes it is helpful to rule out the wrong answers first.

@gguzman are the becker finals tough? Is it new MCQs or repeats from the chapter? I am taking the exam in a few days but very behind in my review so I have not been able to do the mocks yet. Hope to knock one out tomorrow afternoon!

[gguzman]

@xyz yes, I thought they were pretty tough. All new questions. I feel like they gave me a good traps on what to focus on these final few days.

[CPATY]

@CPAIN2K17 Thank you, I understood that one and got it right. The process of elimination was geared more towards the first question I posted.

[CPATY]

@xyz107 I think the main reason D isn't correct is because “only”. There are more factors involved than just that one.

[GinjaNinja]

I am one week out from my REG retake. How would you all suggest would be the best utilization of my time? I am using the Gleim test bank, Ninja audio/notes, and I have the Roger course.

[gguzman]

@xyz yes, I thought they were pretty tough. All new questions. I feel like they gave me a good grasp on what to focus on these final few days.

[CPAIN2K17]

@cpaty oh okay my bad!

[CPAIN2K17]

Took 2 practice tests this weekend (Wiley), got a 77 and a 73. On the 73 I missed some stupid points on the sims because I used decimals and the answer was in whole numbers, although the problem never specified which way to put the answers in. Anyway, my score was probably a little higher if not for the specific grading rules. Don't feel too great about those scores but hopefully it's good enough to get me a 75!

[NVeg]

Farr, an unmarried taxpayer, had $70,000 of adjusted gross income and the following deductions for regular income tax purposes:

Home mortgage interest on a loan to acquire
a principal residence $11,000
Miscellaneous itemized deductions above the
threshold limitation 2,000

What are Farr's total allowable itemized deductions for computing alternative minimum taxable income?

Answer: $11,000 (I thought $13,000)

The explanation states “Miscellaneous itemized deductions are not deductible for AMT (alternative minimum tax) purposes”.

So I'm a little bit confused, but it wouldn't surprise me if i'm just missing something obvious. Or is it the only Miscellaneous Itemized deductions that one can deduct is the amount not subject to the 2% AGI limitation?

[CPAIN2K17]

Miscellaneous itemized deductions subject to the 2% threshold cannot be deducted for AMT, that is why the $2,000 is not included.

Home mortgage interest is an allowed to deduction for AMT, so the answer is just the $11,000

[NVeg]

@CPAIN2K17 It says Miscellaneous itemized deductions above the threshold limitation 2,000. What if it was below the threshold though? Or would that be irrelevant?

[BBHYX]

For those having a hard time with estate/trust income — this was helpful!

https://klasing-associates.com/wp-content/uploads/2015/12/trusts.pdf

[Author]

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