[jeff]

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[Anonymous]

Correct answer is C. The answer states that a 6-year statute of limitations applies if gross income omitted from the return exceeds 25% of the gross income reported on the return. For this purpose, gross income of a business includes total gross receipts before subtracting cost of goods sold and deductions. Thus, a 6-year statute of limitations will apply to Thompson if he omitted from gross income an amount in excess of ($400,000 + $36,000) x 25% = $109,000. So you it is gross receipts plus capital gains too? I multiplied the $116,000 * 25%…just because it said “Gross Income”. Looks like I am not the only one to make that mistake.

[Anonymous]

Correct answer is C. The answer states that a 6-year statute of limitations applies if gross income omitted from the return exceeds 25% of the gross income reported on the return. For this purpose, gross income of a business includes total gross receipts before subtracting cost of goods sold and deductions. Thus, a 6-year statute of limitations will apply to Thompson if he omitted from gross income an amount in excess of ($400,000 + $36,000) x 25% = $109,000. So you it is gross receipts plus capital gains too? I multiplied the $116,000 * 25%…just because it said “Gross Income”. Looks like I am not the only one to make that mistake.

[stokey45]

@Cupcake985

Nope, you are not alone. I would not have thought that would have been the correct way to calculate the answer. Interesting. Glad you posted that question.

[stokey45]

@Cupcake985

Nope, you are not alone. I would not have thought that would have been the correct way to calculate the answer. Interesting. Glad you posted that question.

[Qlad]

@cupcake…really good question…something new..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@cupcake…really good question…something new..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Kenada]

Yep – I got this before and did it wrong too. I remember it was answer C 🙂

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

[Kenada]

Yep – I got this before and did it wrong too. I remember it was answer C 🙂

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

[stokey45]

I have a question that I need some help on.

Mike receives as a gift a draft given to him by his sister, Tina. Mike, has no notice that the draft has been dishonored or is overdue. Mike is:

A. A holder only

B. A holder in due course only.

C. Both a holder and a holder in due course.

D. None of the above.

What do you think?

[stokey45]

I have a question that I need some help on.

Mike receives as a gift a draft given to him by his sister, Tina. Mike, has no notice that the draft has been dishonored or is overdue. Mike is:

A. A holder only

B. A holder in due course only.

C. Both a holder and a holder in due course.

D. None of the above.

What do you think?

[UCMCPA]

B? I'm reviewing Chapter 5 today as it's not my strong point.

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

[UCMCPA]

B? I'm reviewing Chapter 5 today as it's not my strong point.

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

[svwCPA72]

So I ‘m taking my test tomorrow. I'm curious. What do you do the day before you test? Work MCQs, review your notes, look through your book, etc

BEC: 80(8/10) expired, 77(10/14)!!!
FAR: 79(11/10) expired, 80(8/14)!!!
REG: 66(7/11), 70(1/12), 70(4/12), 73(10/13), 79(5/14)!!
AUD: 43(8/11), 64(10/11), 65(2/12), 69(7/12) 64(10/12), 73(5/13), 64(7/13), 84(11/13)!!! Thank you Another71 for your help!

Becker, Ninja Notes, Audio, Flashcard and Wiley test bank
Yaeger and Wiley book for Audit

I AM DONE!!!!

[svwCPA72]

So I ‘m taking my test tomorrow. I'm curious. What do you do the day before you test? Work MCQs, review your notes, look through your book, etc

BEC: 80(8/10) expired, 77(10/14)!!!
FAR: 79(11/10) expired, 80(8/14)!!!
REG: 66(7/11), 70(1/12), 70(4/12), 73(10/13), 79(5/14)!!
AUD: 43(8/11), 64(10/11), 65(2/12), 69(7/12) 64(10/12), 73(5/13), 64(7/13), 84(11/13)!!! Thank you Another71 for your help!

Becker, Ninja Notes, Audio, Flashcard and Wiley test bank
Yaeger and Wiley book for Audit

I AM DONE!!!!

[stokey45]

The correct answer is “A” a Holder only..

A holder is a person with good title to the commercial paper.

A holder is due course (HDC) is a holder who takes the paper for value, in good faith, and without notices of any defenses to or claims of ownership on the instrument.

But there is also the Shelter Doctrine which is a “Holder thru a Holder in due course.” This means that even though the transferee himself might not qualify as an HDC, he can claim the rights of an HDC who held the commercial paper before him.

I chose “C” because of this reason. Was I supposed to assume that his sister was not a HDC. She knowingly transferred a dishonored draft to her brother? Maybe I am reading too much into this question. On the real exam do you think they will tell us that the person prior was a HDC?

[Author]

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