[jeff]

REG Resources:

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

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

[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 !

[UCMCPA]

Say company 1 and company 2 are trading like-kind machinery. Machinery 1 was worth 35,000 but has 18,000 of accum depreciation. Machinery from company 2 is worth 20,000 and machinery from company 1 has a fmv of 21,000.

In this problem; realized gain is 20,000 (FMV of prop received) – adj basis of prop given up or 17,000 = 3,000

Scenario 2: Now assume that company 2 gives company 1, 1,000 in cash as well.

FMV of prop received + cash (boot) = 21,000 – adj basis of property given up – 17,000 = 4,000 REALIZED

Now in scenario 2: recognized gain is the lesser of the realized gain (4,000) or the boot (1,000), so the asnwer for recognized is 1,000

Basis of new asset in scenario two is : adj basis – boot received + gain recognized or 17,000 -1,000 +1,000 = 17k

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

[UCMCPA]

Say company 1 and company 2 are trading like-kind machinery. Machinery 1 was worth 35,000 but has 18,000 of accum depreciation. Machinery from company 2 is worth 20,000 and machinery from company 1 has a fmv of 21,000.

In this problem; realized gain is 20,000 (FMV of prop received) – adj basis of prop given up or 17,000 = 3,000

Scenario 2: Now assume that company 2 gives company 1, 1,000 in cash as well.

FMV of prop received + cash (boot) = 21,000 – adj basis of property given up – 17,000 = 4,000 REALIZED

Now in scenario 2: recognized gain is the lesser of the realized gain (4,000) or the boot (1,000), so the asnwer for recognized is 1,000

Basis of new asset in scenario two is : adj basis – boot received + gain recognized or 17,000 -1,000 +1,000 = 17k

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

[UCMCPA]

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?

Sales proceeds @ 100 shares = 7,000 or 70/share

Wash sale rules purchased 30 days before = 50 shares @ 4,000 or 80/share

Allowed loss from original purchase = 50 shares @ 5,000 or 100/share

Sales proceeds 7,000

cost of shares 9,000

potential loss (2,000)

Wash sale @ 10 per share x 50 = 500 disallowed

Allowed loss = 1,500

I'd choose B

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

[UCMCPA]

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?

Sales proceeds @ 100 shares = 7,000 or 70/share

Wash sale rules purchased 30 days before = 50 shares @ 4,000 or 80/share

Allowed loss from original purchase = 50 shares @ 5,000 or 100/share

Sales proceeds 7,000

cost of shares 9,000

potential loss (2,000)

Wash sale @ 10 per share x 50 = 500 disallowed

Allowed loss = 1,500

I'd choose B

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

[Kenada]

yes it is B 🙂 looks like you have wash sales locked down!

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

[Kenada]

yes it is B 🙂 looks like you have wash sales locked down!

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

[terranz]

@insiyah – i like how you switched up the prob – had to go thru the rules

i know that one well but was like she changed the fact pattern.

can you or anyone please just confirm::: THIS Q is driving me CRAZY!!!!!!!!!!!!!!!!

no reason why it shouldn't be 25% of 116.

no where in beckers does it say gross income = gross receipts + capital gains

for the 25% statute of limitations

gross income = gross receipts + capital gains correct?

not just the gross income they state in the problem (refer to page 14, but fact pattern is below)

Fact pattern says Gross income = 116 . why wouldn't you use gross income?

Gross receipts $400,000

Less COGS and deductions 320,000

Net business income $80,000

Capital gains 36,000

Gross income $116,000

[terranz]

@insiyah – i like how you switched up the prob – had to go thru the rules

i know that one well but was like she changed the fact pattern.

can you or anyone please just confirm::: THIS Q is driving me CRAZY!!!!!!!!!!!!!!!!

no reason why it shouldn't be 25% of 116.

no where in beckers does it say gross income = gross receipts + capital gains

for the 25% statute of limitations

gross income = gross receipts + capital gains correct?

not just the gross income they state in the problem (refer to page 14, but fact pattern is below)

Fact pattern says Gross income = 116 . why wouldn't you use gross income?

Gross receipts $400,000

Less COGS and deductions 320,000

Net business income $80,000

Capital gains 36,000

Gross income $116,000

[Qlad]

i want to thank you all guys….before i go to the exam today…it has been a great help…all the discussions…especially the gift basis….hope i get to use it…Thanks to all of u…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

i want to thank you all guys….before i go to the exam today…it has been a great help…all the discussions…especially the gift basis….hope i get to use it…Thanks to all of u…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Future_FLCPA]

Good luck @Qlad!

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

Good luck @Qlad!

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Anonymous]

Best of luck Qlad! You have prepared well and you are ready for this! Stay confident and let us know how it goes!

[Anonymous]

Best of luck Qlad! You have prepared well and you are ready for this! Stay confident and let us know how it goes!

[Author]

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