[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

[Future_FLCPA]

Best of luck @smsingla!

I'm taking the exam the day AFTER Halloween (bad timing on my part).

Between now and then, i will be doing lots and lots of MCQ's and for topics where I'm weaker, I'll dig into the details and write/rewrite notes. Let us know how it goes! I'm sure you'll be fine.

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

[Anonymous]

@smsingla, good luck. I would review notes on my final days.

Can someone please tell/show me what the deduction would be if your start up costs is over 50,000. Lets say it is 54,000. I know you are allowed $5,000 deduction immediately and the rests to be amortized by 15 yrs (180 months) but I don't know how to do the calculation if it is over 50,000.

[Anonymous]

@smsingla, good luck. I would review notes on my final days.

Can someone please tell/show me what the deduction would be if your start up costs is over 50,000. Lets say it is 54,000. I know you are allowed $5,000 deduction immediately and the rests to be amortized by 15 yrs (180 months) but I don't know how to do the calculation if it is over 50,000.

[Anonymous]

@amelia

The deduction of $5000 is allowed for a total start-up cost under $50 000. any amount over $50 000 decreases dollars for dollars the $5000 allowed.

So for a total cost of $54000, we will have a current year deduction of $1000 (5000 – 4000) plus the amortization of the remainder $53000 (54000 – 1000).

[Anonymous]

@amelia

The deduction of $5000 is allowed for a total start-up cost under $50 000. any amount over $50 000 decreases dollars for dollars the $5000 allowed.

So for a total cost of $54000, we will have a current year deduction of $1000 (5000 – 4000) plus the amortization of the remainder $53000 (54000 – 1000).

[Anonymous]

@ericnkem…thanks!

[Anonymous]

@ericnkem…thanks!

[Future_FLCPA]

Prail Corporation is a C corporation that on February 1, 2013 elected to be taxed as a calendar-year S corporation. On June 15, 2013, Prail sold land with a basis of $100,000 for $200,000 cash. The fair market value of the land on February 1, 2013 was $150,000. Prail had no other income or loss for the year and no carryovers from prior years.

What is Prail's tax?

$7,500

$17,500

$22,250

$35,000

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

[Future_FLCPA]

Prail Corporation is a C corporation that on February 1, 2013 elected to be taxed as a calendar-year S corporation. On June 15, 2013, Prail sold land with a basis of $100,000 for $200,000 cash. The fair market value of the land on February 1, 2013 was $150,000. Prail had no other income or loss for the year and no carryovers from prior years.

What is Prail's tax?

$7,500

$17,500

$22,250

$35,000

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

[Future_FLCPA]

$17,500

A C corporation that makes an S election and has unrealized built-in gains in its assets as of the election day must pay a built-in gains tax on this appreciation if it is recognized within the next 10 years.

When Prail makes the S election it has appreciation in the land of $50,000 ($150,000 – $100,000). Since the land was sold within 10 years of the election day, the first $50,000 of gain is taxed to the corporation at the rate of 35%.

Therefore, Prail must pay a tax of $17,500 ($50,000 * 35%).

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

[Future_FLCPA]

$17,500

A C corporation that makes an S election and has unrealized built-in gains in its assets as of the election day must pay a built-in gains tax on this appreciation if it is recognized within the next 10 years.

When Prail makes the S election it has appreciation in the land of $50,000 ($150,000 – $100,000). Since the land was sold within 10 years of the election day, the first $50,000 of gain is taxed to the corporation at the rate of 35%.

Therefore, Prail must pay a tax of $17,500 ($50,000 * 35%).

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

[smsingla]

For electing large partnerships, Sec 1231 gains and losses.

A. Are considered at the partnership level if a loss item and are separately stated if a gain item

B. none of the answers are correct

C are separately stated

D. are netted at the partnership level

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[smsingla]

For electing large partnerships, Sec 1231 gains and losses.

A. Are considered at the partnership level if a loss item and are separately stated if a gain item

B. none of the answers are correct

C are separately stated

D. are netted at the partnership level

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[Future_FLCPA]

I'll go with C: separately stated.

When a depreciable asset is sold, the gain may be recaptured and treated as ordinary income. When the gain exceeds the recapture, it is treated as section 1231 and will be separately stated.

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

[Future_FLCPA]

I'll go with C: separately stated.

When a depreciable asset is sold, the gain may be recaptured and treated as ordinary income. When the gain exceeds the recapture, it is treated as section 1231 and will be separately stated.

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

[Author]

Replies