[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

[smsingla]

@ Future…..Thank u so much for explanation 🙂

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

[smsingla]

@ Future…..Thank u so much for explanation 🙂

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

[smsingla]

Can someone please explain ” Indemnification” ?

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

[smsingla]

Can someone please explain ” Indemnification” ?

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

[Anonymous]

@smsingla which area of REG are you specifically talking about? Indemnification generally means to make whole or to compensate.

Relating to corporate governance, if an officer/director is sued but has acted in good faith, then the company will generally indemnify/compensate the officer for legal expenses, etc.

Relating to suretyship, the surety can bring suit against the principal debtor for reimbursement after the surety pays the creditor (lender) on behalf of the debtor. This is also (confusingly) called indemnification.

Hope this helps!

[Anonymous]

@smsingla which area of REG are you specifically talking about? Indemnification generally means to make whole or to compensate.

Relating to corporate governance, if an officer/director is sued but has acted in good faith, then the company will generally indemnify/compensate the officer for legal expenses, etc.

Relating to suretyship, the surety can bring suit against the principal debtor for reimbursement after the surety pays the creditor (lender) on behalf of the debtor. This is also (confusingly) called indemnification.

Hope this helps!

[smsingla]

@Callmepapi, Thanks for ur explanation. I meant the one relating to surety

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

[smsingla]

@Callmepapi, Thanks for ur explanation. I meant the one relating to surety

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

[smsingla]

Just wondering if a Corporation can recognize loss on distribution of depreciated property in complete liquidation. I know that it can recognize gain on appreciated property as if property is sold. I always thought that it can recognize loss as well as Wiley Book says ” A liquidating corporation generally recognizes gain or loss on the sale of distribution of its assets in complete liquidation.”

But I was doing this SIM in WIley test bank and it says that Pamela corp. distributes an equipment to one of its shareholder with adj basis $15,000 and FMV $10,000. to determine its lose on distribution of this equipment in complete liquidation, I chose $5,000 lose but in solution it says “although a liquidating corp must recognize gain on the distribution of appreciated property to minority shareholders in Sec 332 liquidation, no loss can be recognized” :/

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

[smsingla]

Just wondering if a Corporation can recognize loss on distribution of depreciated property in complete liquidation. I know that it can recognize gain on appreciated property as if property is sold. I always thought that it can recognize loss as well as Wiley Book says ” A liquidating corporation generally recognizes gain or loss on the sale of distribution of its assets in complete liquidation.”

But I was doing this SIM in WIley test bank and it says that Pamela corp. distributes an equipment to one of its shareholder with adj basis $15,000 and FMV $10,000. to determine its lose on distribution of this equipment in complete liquidation, I chose $5,000 lose but in solution it says “although a liquidating corp must recognize gain on the distribution of appreciated property to minority shareholders in Sec 332 liquidation, no loss can be recognized” :/

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

[smsingla]

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

[smsingla]

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

[smsingla]

OH, I get it. Because shareholder owned 20% stock, it comes under minority shareholder, sec 332 applies. where gain(but no loss) is recognized on the distribution of property to minority shareholders (20% or less) 😛

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

[smsingla]

OH, I get it. Because shareholder owned 20% stock, it comes under minority shareholder, sec 332 applies. where gain(but no loss) is recognized on the distribution of property to minority shareholders (20% or less) 😛

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

[Anonymous]

Hi guys,

With regards to ericknkem posts above on the section 179 deduction, I am a bit confused. I thought that the maximum deduction was $500,000 and it reduces dollar for dollar for personal property costing over $2,000,000. Now what is this $125,000 limit?

Also, are you allowed to take section 179 and MACRS in the same year?

Can someone please explain this to me…I feel like I am in the middle of the ocean not understanding section 179.

[Author]

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