[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

[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.

[Kenada]

Richard and Alice Kelley lived apart during 2012 and did not file a joint tax return for the year. Under the terms of the written separation agreement they signed on July 1, 2012, Richard was required to pay Alice $1,500 per month, of which $600 was designated as child support. He made six such payments in 2012. Additionally, Richard paid Alice $1,200 per month for the first 6 months of 2012, no portion of which was designated as child support. Assuming that Alice has no other income, her return for 2012 should show gross income of

A. $12,600

B. $10,800

C. $5,400

D. $0

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

[Kenada]

Richard and Alice Kelley lived apart during 2012 and did not file a joint tax return for the year. Under the terms of the written separation agreement they signed on July 1, 2012, Richard was required to pay Alice $1,500 per month, of which $600 was designated as child support. He made six such payments in 2012. Additionally, Richard paid Alice $1,200 per month for the first 6 months of 2012, no portion of which was designated as child support. Assuming that Alice has no other income, her return for 2012 should show gross income of

A. $12,600

B. $10,800

C. $5,400

D. $0

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

[Anonymous]

I think it would be C. $5,400, that is ($1,500-$600 for child support) * 6 months. I don't think any of the $1,200 per month would have to be included in income since there seperation agreement wasn't signed until Jul 1. It would just be like a spouse giving a gift of money to one another, Not sure about this though.

[Anonymous]

I think it would be C. $5,400, that is ($1,500-$600 for child support) * 6 months. I don't think any of the $1,200 per month would have to be included in income since there seperation agreement wasn't signed until Jul 1. It would just be like a spouse giving a gift of money to one another, Not sure about this though.

[sissygirl]

Thank you cupcake985!

[sissygirl]

Thank you cupcake985!

[Kenada]

Yes it is C.

So we should look at when the official separation was vs when they actually started living apart

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

[Kenada]

Yes it is C.

So we should look at when the official separation was vs when they actually started living apart

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

[UCMCPA]

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?

I'm also confused on this, I would have thought D was incorrect cause they could go after either the debtor or the surety. However, I'm assuming the rules are changed when collateral is involved.

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

[UCMCPA]

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?

I'm also confused on this, I would have thought D was incorrect cause they could go after either the debtor or the surety. However, I'm assuming the rules are changed when collateral is involved.

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

[Kenada]

Before Cupcake brought this issue I also said D since I was looking at the one that was incorrect since i thought with Suretyship the creditor was able to go collect from either the Debtor or the Suretyship.

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

[Kenada]

Before Cupcake brought this issue I also said D since I was looking at the one that was incorrect since i thought with Suretyship the creditor was able to go collect from either the Debtor or the Suretyship.

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

[UCMCPA]

Where is cupcakes answer to what was wrong with the problem? I can't seem to find it.

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

[UCMCPA]

Where is cupcakes answer to what was wrong with the problem? I can't seem to find it.

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

[Author]

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