[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

[Kenada]

Ohhh… I read A as if they were to deal with real estate (land/buildings) – meaning buying and selling it. So that is why i was puzzled between A and B. :S

I know B is right too. I just would be very frustrated in the exam room if there was a question like this and I am torn between two answers.

I have the rule in my Rogers book as follows:

P/Ship requires written evidence – GROSS

Goods for sale – $ 500 or more

Real Estate sales (Any amount of money)

Over one year

Suretyship

Statements

Oral – this is acceptable when statute of frauds does not apply.

So you can see why I am confused.

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

[Kenada]

Ohhh… I read A as if they were to deal with real estate (land/buildings) – meaning buying and selling it. So that is why i was puzzled between A and B. :S

I know B is right too. I just would be very frustrated in the exam room if there was a question like this and I am torn between two answers.

I have the rule in my Rogers book as follows:

P/Ship requires written evidence – GROSS

Goods for sale – $ 500 or more

Real Estate sales (Any amount of money)

Over one year

Suretyship

Statements

Oral – this is acceptable when statute of frauds does not apply.

So you can see why I am confused.

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

[Skrier]

@IY…I would err on the side of the answer that you KNOW is correct, even if there is one that “could” be correct. At least that has helped me in the past. Try this approach while doing your practice questions and see if it helps.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@IY…I would err on the side of the answer that you KNOW is correct, even if there is one that “could” be correct. At least that has helped me in the past. Try this approach while doing your practice questions and see if it helps.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Anonymous]

I have a question with regards to the basis of stock received as dividend (in relation to a stock split). Wiley says it depends on whether it was included in income when recieved (i.e., taxable or non-taxable). If it is not taxable, you allocate basis of original stock between dividend stock and original stock in proportion to relative FMVs at date of distribution. If it is included in income, the basis equals FMV. I don't understand when the stock dividend IS taxable and when it is NOT taxable. Is this if it is a dividend on Preferred stock? I know common stock dividends are exluded from gross income. I am not sure I understand what they mean when they say “it depends on whether it was included in income when recieved “. Are they talking about the original stock or the stock dividend?

[Anonymous]

I have a question with regards to the basis of stock received as dividend (in relation to a stock split). Wiley says it depends on whether it was included in income when recieved (i.e., taxable or non-taxable). If it is not taxable, you allocate basis of original stock between dividend stock and original stock in proportion to relative FMVs at date of distribution. If it is included in income, the basis equals FMV. I don't understand when the stock dividend IS taxable and when it is NOT taxable. Is this if it is a dividend on Preferred stock? I know common stock dividends are exluded from gross income. I am not sure I understand what they mean when they say “it depends on whether it was included in income when recieved “. Are they talking about the original stock or the stock dividend?

[Skrier]

@Cupcake….as far as an actual stock dividend being taxable, generally they are not. The only time they would be taxable is if the stockholder has a choice of receiving cash or other property in lieu of stock dividend, then the value would be taxable.

If you are using Becker 2013 you can find this in R3-47

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@Cupcake….as far as an actual stock dividend being taxable, generally they are not. The only time they would be taxable is if the stockholder has a choice of receiving cash or other property in lieu of stock dividend, then the value would be taxable.

If you are using Becker 2013 you can find this in R3-47

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[terranz]

Dent Corporation received a loan from Jardine Finance Company. As part of the signed written agreement, Jardine required that one of the members of the board of directors of Dent Corporation act as a surety for the entire loan. The loan agreement also called for some of Dent’s real estate to be used as collateral for 50% of the loan. Which of the following is not correct?

a. Jardine may choose to proceed against the surety for the entire loan when the loan is due.

b. when the loan is due, if the collateral doesn’t contribute to half of the loan, jardine may seek to recover the entire remainder from the surety without resorting to the corporation

c. if jardine recover’s more than half of the loan amount upon resale of the collateral, Jardine must pay the excess to dent.

d. When the loan is due, jardine must first seek collection of the loan from dent before resorting to the surety or the collateral.

@smsingla – A is correct answer. as cupcake said, the question should ask, “which one is correct?”

i know A is correct, but could someone provide an explanation why C is incorrect?

[terranz]

Dent Corporation received a loan from Jardine Finance Company. As part of the signed written agreement, Jardine required that one of the members of the board of directors of Dent Corporation act as a surety for the entire loan. The loan agreement also called for some of Dent’s real estate to be used as collateral for 50% of the loan. Which of the following is not correct?

a. Jardine may choose to proceed against the surety for the entire loan when the loan is due.

b. when the loan is due, if the collateral doesn’t contribute to half of the loan, jardine may seek to recover the entire remainder from the surety without resorting to the corporation

c. if jardine recover’s more than half of the loan amount upon resale of the collateral, Jardine must pay the excess to dent.

d. When the loan is due, jardine must first seek collection of the loan from dent before resorting to the surety or the collateral.

@smsingla – A is correct answer. as cupcake said, the question should ask, “which one is correct?”

i know A is correct, but could someone provide an explanation why C is incorrect?

[terranz]

@umccpa – thx for helping to get clear on aoc/lifetime. everything helps. hopefully you can remember where you saw that.

Also, for anyone, in the reconciliation from book to tax income (m-1)

if book income includes “provision for tax income” that is ok right? this isn't the same as “federal income tax expense” where you would have to adjust.

likewise, if book income includes “interest earned or paid on U.S. obligations” no adjustment is needed. U.S. obligations are NOT tax exempt like municipal bonds right?

[terranz]

@umccpa – thx for helping to get clear on aoc/lifetime. everything helps. hopefully you can remember where you saw that.

Also, for anyone, in the reconciliation from book to tax income (m-1)

if book income includes “provision for tax income” that is ok right? this isn't the same as “federal income tax expense” where you would have to adjust.

likewise, if book income includes “interest earned or paid on U.S. obligations” no adjustment is needed. U.S. obligations are NOT tax exempt like municipal bonds right?

[sissygirl]

Hello all. How is everyone studying or practicing for the research simulation? I know with audit and far we we used the 6 month subscription to aicpa professional literature, but what are we supposed to use for Reg?

[sissygirl]

Hello all. How is everyone studying or practicing for the research simulation? I know with audit and far we we used the 6 month subscription to aicpa professional literature, but what are we supposed to use for Reg?

[Anonymous]

Hey @sissygirl. I have just practiced using the Wiley text book questions, the Wiley test bank, and the IRC here: https://www.law.cornell.edu/uscode/text/26.

[Author]

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