[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]

Skrier, yes.

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

[UCMCPA]

Skrier, yes.

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

[Kenada]

Can someone explain the 5.5*12. I get 12 is the number of years but where did 5.5 come from ?

Taxpayer A leased an office building on January 1, 2011, for 15 years with no option to renew. On July 1, 2012, A paid $10,000 for a new roof for the building. What is A’s allowable amortization deduction for 2012?

A. $118.

B. $417

C. $833

D. $320

Answer (A) is correct.

Sec. 168(i)(8) provides that improvements made on leased property are recovered as a MACRS deduction. A new roof on an office building is considered nonresidential real property and depreciated over a 39-year period. The mid-month convention applies. Taxpayer A’s allowable deduction in 2012 is $118 [($10,000 ÷ 39 years) × (5.5 ÷ 12)].

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

[Kenada]

Can someone explain the 5.5*12. I get 12 is the number of years but where did 5.5 come from ?

Taxpayer A leased an office building on January 1, 2011, for 15 years with no option to renew. On July 1, 2012, A paid $10,000 for a new roof for the building. What is A’s allowable amortization deduction for 2012?

A. $118.

B. $417

C. $833

D. $320

Answer (A) is correct.

Sec. 168(i)(8) provides that improvements made on leased property are recovered as a MACRS deduction. A new roof on an office building is considered nonresidential real property and depreciated over a 39-year period. The mid-month convention applies. Taxpayer A’s allowable deduction in 2012 is $118 [($10,000 ÷ 39 years) × (5.5 ÷ 12)].

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

[Skrier]

If I understand their explanation correctly, the mid month convention applies, also it appears they are saying the roof is considered placed in service half way thought the year. This would give you the 5.5 / 12 months. But I am not certain on this.

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

[Skrier]

If I understand their explanation correctly, the mid month convention applies, also it appears they are saying the roof is considered placed in service half way thought the year. This would give you the 5.5 / 12 months. But I am not certain on this.

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

[UCMCPA]

Yes. You get 1/2 months of depr when placed in service for that month + remaining months of the year.

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

[UCMCPA]

Yes. You get 1/2 months of depr when placed in service for that month + remaining months of the year.

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

[Kenada]

Ok so July is the 0.5 month and then the months from Aug to Dec is the 5 months ?

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

[Kenada]

Ok so July is the 0.5 month and then the months from Aug to Dec is the 5 months ?

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

[Kenada]

I have serious blues with Corporation Tax 🙁

Under which of the following circumstances would a corporation be required to file a federal income tax return?

A. The corporation has dissolved and is in bankruptcy.

B. A corporation with no assets that stops doing business and dissolves is treated as a corporation under state law for limited purposes connected with winding up its affairs.

C. In 2011, Corporation M ceased doing business and disposed of all of its assets. However, during all of 2012, M was in the process of suing Corporation B.

D. The corporation has disposed of all of its assets except for a small sum of cash retained to pay state taxes to preserve its corporate charter.

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

[Kenada]

I have serious blues with Corporation Tax 🙁

Under which of the following circumstances would a corporation be required to file a federal income tax return?

A. The corporation has dissolved and is in bankruptcy.

B. A corporation with no assets that stops doing business and dissolves is treated as a corporation under state law for limited purposes connected with winding up its affairs.

C. In 2011, Corporation M ceased doing business and disposed of all of its assets. However, during all of 2012, M was in the process of suing Corporation B.

D. The corporation has disposed of all of its assets except for a small sum of cash retained to pay state taxes to preserve its corporate charter.

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

[UCMCPA]

I have no idea, can't recall. lol

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

[UCMCPA]

I have no idea, can't recall. lol

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

[Kenada]

Answer is D

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

[Author]

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