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May 31, 2017 at 7:00 am #1563001jeffKeymaster
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/
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August 24, 2017 at 12:31 pm #1614884LamisParticipant
@2017cpa you're welcome anytime.
But the thing is about 2 assets not one asset purchased in quarter and placed in service in other quarter cuz they assume once they purchased it will be placed in service. Okay?
Let me give u an example from Becker sim:
A computer purchased on march 30 for $100,000. Other furniture in the amount of $80,000 was purchased in November.Obviously more than 40% (80,000/180,000)purchased in the last quarter so Mid quarter convention but the question was asking about the depreciation of the computer purchased in March so use First quarter of Mid quarter convention.
Makes sense?
“But be careful if 2 assets purchased & u wanna measure the 40% rule they should be both personal property”August 24, 2017 at 1:00 pm #1614891LamisParticipant@blueselp thank you 🙂
August 24, 2017 at 2:31 pm #1614950In it to earn itParticipantThe following question is in Wiley as well. Wiley gives the correct answer as being C, but Ninja says that specific performance is available. I thought specific performance is only available if the parts are unique to the customer, and this problem states that the part is similar to those for various other customers. So, what answer is correct?
Eagle Corporation solicited bids for various parts it used in the manufacture of jet engines. Eagle received six offers and selected the offer of Sky Corporation. The written contract specified a price for 100,000 units, delivery on June 1 at Sky’s plant, with payment on July 1. On June 1, Sky had completed a 200,000-unit run of parts similar to those under contract for Eagle and various other customers. Sky had not identified the parts to specific contracts. When Eagle’s truck arrived to pick up the parts on June 1, Sky refused to deliver, claiming the contract price was too low. Eagle was unable to cover in a reasonable time. Its production lines were in danger of shutdown because the parts were not delivered. Eagle would probably:
A.
have as its only remedy the right of replevin.B.
have the right of replevin only if Eagle tendered the purchase price on June 1.Incorrect C.
have as its only remedy the right to recover dollar damages.D.
have the right to obtain specific performance.August 24, 2017 at 2:38 pm #1614947In it to earn itParticipantThe following question is in the Wiley test bank as well and I could swear that the correct answer Wiley gives is C, that only dollar damages are available. However, the Ninja explanation says that specific performance is available. That doesn't seem correct, because the problem states that the parts were similar to other those made for various other customers. Specific performance is only available if the product is unique to that customer, correct? So, who do you think is correct, Wiley or Ninja?
Eagle Corporation solicited bids for various parts it used in the manufacture of jet engines. Eagle received six offers and selected the offer of Sky Corporation. The written contract specified a price for 100,000 units, delivery on June 1 at Sky’s plant, with payment on July 1. On June 1, Sky had completed a 200,000-unit run of parts similar to those under contract for Eagle and various other customers. Sky had not identified the parts to specific contracts. When Eagle’s truck arrived to pick up the parts on June 1, Sky refused to deliver, claiming the contract price was too low. Eagle was unable to cover in a reasonable time. Its production lines were in danger of shutdown because the parts were not delivered. Eagle would probably:
A.
have as its only remedy the right of replevin.B.
have the right of replevin only if Eagle tendered the purchase price on June 1.Incorrect C.
have as its only remedy the right to recover dollar damages.D.
have the right to obtain specific performance.August 24, 2017 at 3:19 pm #1614986In it to earn itParticipantSorry for the duplicate post. Didn't show up the first time, but then popped up all of a sudden…
August 24, 2017 at 5:10 pm #1615028LamisParticipant@in it to earn it , I guess specific performance is the correct answer , I think he can't get somebody else to do this for him.
I don't think he can get money and just ask somebody else to perform this for him.
I'm not sure 100% thoughAugust 24, 2017 at 6:55 pm #1615079In it to earn itParticipant@ Lamis, I think you are correct. Thank you.
August 24, 2017 at 9:02 pm #1615124pharaohParticipantI usually don't do this and don't mean to stress anyone out, i just need to vent a bit, my exam is in a week and not feeling so good about it like previous parts and now this hurricane is coming and i really hope that we don't lose power …………breath in, breath out
FAR 8/2016
AUD 1/2017
REG TBD
BEC TBDAugust 24, 2017 at 9:14 pm #1615133McGboyeParticipant@ Everyone affected by hurricane: be safe. Safety first, CPA can take care of itself.
Talking of race against time, i am in a similar dilemma. My May 15 Reg result only came out on Aug 18 (failed -62). And now i had to register immediately cos i did not want to lose this window. Sadly I only got a Sept 2nd date. Literally only 10 days to prep for an exam i scored only 62 last time. But I suppose that's part of what makes passing the CPA exams very satisfying.
August 25, 2017 at 8:35 am #1615265pcunniffParticipant@IMinittoearnit I know which problem you are talking about and you are correct about that.
You are only entitled to recover damages in the event that you made or deliver the fixtures, bulbs, whatever the hell it may be of lesser grade/quality but essentially IDENTICAL. Therefore, they cannot deny performance. THEY CAN recover the diff in monetary damages due to the fact that the batch was of lesser quality. The contract is still valid though. Hope that makes sense.
August 25, 2017 at 11:51 am #1615434pcunniffParticipantNot sure if anyone has worked CPA wiley excel sims, but im not sure i understand these explanations
(tbs.distrib.spec.tax.001_2017)After reviewing the documents from the Exhibits tab and assuming that Bruce's basis in his stock exceeds the amount of the distribution, the distribution to Bruce Wayne produces ordinary income of $0 and capital gain of $5000. explanation
[Original text] the distribution to Bruce Wayne produces ordinary income of $300 and capital gain of $0.
the distribution to Bruce Wayne produces ordinary income of $0 and capital gain of $5000.
the distribution to Bruce Wayne produces ordinary income of $5000 and capital gain of $0.
the distribution to Bruce Wayne produces ordinary income of $600 and capital gain of $0.Is he limited to 300 because of being a 50% partner and accumulated E&P is 500? The correct answer is ord inc of 300 and cap gain of 0.
After reviewing the documents from the Exhibits tab and assuming that the total losses (including charitable contributions) allocated to Bruce are ($4,000), [Original text] the amount of loss that can be deducted on Bruce Wayne's 1040 is ($2,825). explanation
[Original text] the amount of loss that can be deducted on Bruce Wayne's 1040 is ($2,825).
the amount of loss that can be deducted on Bruce Wayne's 1040 is $0.
the amount of loss that can be deducted on Bruce Wayne's 1040 is ($2,900).
the amount of loss that can be deducted on Bruce Wayne's 1040 is ($5,000).
the amount of loss that can be deducted on Bruce Wayne's 1040 is ($3,175).I dont understand how the answer is (2,900). Can someone explain?
August 25, 2017 at 2:28 pm #1615559LamisParticipantI always get confused between costs to be capitalized and expensed, now REPAIRS AND MAINTENANCE expensed or capitalized?
August 25, 2017 at 3:50 pm #1615619LamisParticipant@pcunniff I found out something that u have been asking about ,
I found out that investment income can be portfolio (interest and dividends) or can be passive (rental income if not materially participated, royalties, participation in limited partnerships)August 25, 2017 at 3:53 pm #1615625In it to earn itParticipant@pcunnif, Thanks, that makes sense….About the Wiley SIMS, I have had a really tough time with the Wiley SIMS (for FAR, but even more so for REG). The document review SIMS often don't give any explanations and sometimes even the explanations are incorrect! So frustrating that I have abandoned most of them. Working through the Ninja SIMS now, which are helpful and work a lot better.
August 25, 2017 at 4:03 pm #1615637pcunniffParticipantGuys I need help with PHCs (personal holding companies) –
“Domestic and foreign corporations satisfying the personal holding company stock ownership and income tests are personal holding companies. As such, the corporation will be subject a 15% penalty tax on undistributed personal holding company income. This was an answer straight out of (AICPA.941145REG-AR) Wiley CPA EXCEL.”
Im confused because I took out my becker book and read on R4-40 that PHCs are not subject to accumulated earnings tax. What exactly is the 15% penalty taxed on undistributed personal holding company income? That seems like an accumulated earnings tax to me. Please explain the difference(s).
Thanks!
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