[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[UCMCPA]

Ask your questions. I want to practice lol, I take this exam next monday and am pretty nervous

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

Ask your questions. I want to practice lol, I take this exam next monday and am pretty nervous

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Kenada]

Salon Inc Distributed Cash and personal property to its sole shareholder. Using the following facts, determing the amount of gain that would be recognised by salon Inc as the result of making the distritbution to its shareholder?

Cash 20,000

Personal Property

FMV 6,000

Adjusted bases 3,000

Liability on property assumed by shareholder 10,000

A 3000

B 4000

C 7000

D 23,000

FAR 05/27/14; 786/110 - Done !

[Kenada]

Salon Inc Distributed Cash and personal property to its sole shareholder. Using the following facts, determing the amount of gain that would be recognised by salon Inc as the result of making the distritbution to its shareholder?

Cash 20,000

Personal Property

FMV 6,000

Adjusted bases 3,000

Liability on property assumed by shareholder 10,000

A 3000

B 4000

C 7000

D 23,000

FAR 05/27/14; 786/110 - Done !

[UCMCPA]

Would guess 3,000 because they are supposed to treat appreciated property as if they sold it for FMV.

However, when the liability that the shareholder assumes is in excess of basis.. fmv cannot be less than that. So it would be 10,000 -3,000 = 7,000.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

Would guess 3,000 because they are supposed to treat appreciated property as if they sold it for FMV.

However, when the liability that the shareholder assumes is in excess of basis.. fmv cannot be less than that. So it would be 10,000 -3,000 = 7,000.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Journhi]

what's the difference between Gain recognized by the S/H vs Boot recognized?

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[Journhi]

what's the difference between Gain recognized by the S/H vs Boot recognized?

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[UCMCPA]

They may not be the same thing, gain recognized is the lesser of boot or gain realized.. while boot is just boot, anything other given in the transaction such as cash, other property, assumption of liabilities.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

They may not be the same thing, gain recognized is the lesser of boot or gain realized.. while boot is just boot, anything other given in the transaction such as cash, other property, assumption of liabilities.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Kenada]

Yes the answer is 7,000 because of the liability being greater than the FMV.

So you take 10,000 – 3,000 to get the gain.

FAR 05/27/14; 786/110 - Done !

[Kenada]

Yes the answer is 7,000 because of the liability being greater than the FMV.

So you take 10,000 – 3,000 to get the gain.

FAR 05/27/14; 786/110 - Done !

[Journhi]

@UCMCPA how is realized gain calculated? Thank you for your help!!!!

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[Journhi]

@UCMCPA how is realized gain calculated? Thank you for your help!!!!

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[Kenada]

Miller, an individual calendar year tax payer, purchased 100 shares of Maple Inc, Common Stock for 10,000 on July 2011, and an additional fifty shares of Maples In common stock for 4,000 on Dec 24 2011. On jan 8 2012 miller sold the 100 shares purchased on july 10 2011 for 7,000. What is the amount of Millers recognized loss for 2012 and what is the basis for her remaining fifty shares of Maples Inc Stock?

a. 3000 recognized loss ; 4000 basis for her remaining stock

b. 1500 recognized loss; 5500 basis for her remaining stock

c. 1500 recognised loss; 4000 basis for her remaining stock

d 0 recognized loss; 7000 basis for her remaining stock.

FAR 05/27/14; 786/110 - Done !

[Author]

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