[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

[smsingla]

@insiyah….Thanks a lot

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

[smsingla]

@insiyah….Thanks a lot

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

[Qlad]

got a question…

Computer purchased for 100000 on march 30. Bldg purchased for 500000 in november. what is MACRS , and convention…

The answer only considers computer for both MACRS and convention and says bldg is irrelevant …why?

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

[Qlad]

got a question…

Computer purchased for 100000 on march 30. Bldg purchased for 500000 in november. what is MACRS , and convention…

The answer only considers computer for both MACRS and convention and says bldg is irrelevant …why?

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

[Skrier]

@Qlad…the Building is real estate property and subject to 39 year straight line depreciation MACRS- accelerated depreciation does not apply. Take a look at page R3-28 in Becker book and it will explain the residential rental property and non-residential real property rules. Hope this helps.

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

[Skrier]

@Qlad…the Building is real estate property and subject to 39 year straight line depreciation MACRS- accelerated depreciation does not apply. Take a look at page R3-28 in Becker book and it will explain the residential rental property and non-residential real property rules. Hope this helps.

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

[Qlad]

@skrier….i am not able to get this ….on page 28 it says the heading MACRS-Real estate…ok may be u r right it is straight line ‘n not 200% declining,..

.how about this one…i can't understand the calculation as per the table…

Computer purchased $100000 on march 30th. Furniture $ 80000 in November …

Answer is 5 yrs MACRS, mid convention …and Depreciation amount $35000. How did they get that convention and amount…i can't figure out…

Explanation …more than 40% was purchased in 4th quarter ( 40% of 180000? is 72000)…and used 35% for depreciation of 100000 of computer…(I can't find 35% anywhere in the table of mid convention…)

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

[Qlad]

@skrier….i am not able to get this ….on page 28 it says the heading MACRS-Real estate…ok may be u r right it is straight line ‘n not 200% declining,..

.how about this one…i can't understand the calculation as per the table…

Computer purchased $100000 on march 30th. Furniture $ 80000 in November …

Answer is 5 yrs MACRS, mid convention …and Depreciation amount $35000. How did they get that convention and amount…i can't figure out…

Explanation …more than 40% was purchased in 4th quarter ( 40% of 180000? is 72000)…and used 35% for depreciation of 100000 of computer…(I can't find 35% anywhere in the table of mid convention…)

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

[Qlad]

@skrier…

one mistake i found was that i was looking at wrong table…how dumb…but confusion still remains about questions

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

[Qlad]

@skrier…

one mistake i found was that i was looking at wrong table…how dumb…but confusion still remains about questions

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

[Skrier]

@Qlad,

Just to start with… the Mid-Quarted convention must be used because more than 40% of the property that was placed into service during the year was done so in the last quarter…..(80,000/180,000) = 44.4%

For the depreciation on the computer you will need to think of the computer being placed into service 1.5 months into the year instead of at the end of the third month. The computer falls under a 5 year asset class and double depreciation rate is 200%. So to do the calculation you need to take the 2.0 x 10.5/12= 1.75 then multiply that times the standard depreciation amount which would be 20% for a 5 year asset class. 20% x 1.75= 35%.

Try working the problem with this explanation and see if it works out.

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

[Skrier]

@Qlad,

Just to start with… the Mid-Quarted convention must be used because more than 40% of the property that was placed into service during the year was done so in the last quarter…..(80,000/180,000) = 44.4%

For the depreciation on the computer you will need to think of the computer being placed into service 1.5 months into the year instead of at the end of the third month. The computer falls under a 5 year asset class and double depreciation rate is 200%. So to do the calculation you need to take the 2.0 x 10.5/12= 1.75 then multiply that times the standard depreciation amount which would be 20% for a 5 year asset class. 20% x 1.75= 35%.

Try working the problem with this explanation and see if it works out.

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

[Qlad]

@ skrier,

rewriting the question and answer….

A Computer purchased for $100000 on march 30th. Other Furniture in the amount of $ 80000 was purchased in November. Compute the MACRS, Convention and depreciation amount.

Answer is 5 yrs MACRS, mid convention and Depreciation amount $35000. How did they get that convention and amount…i can't figure out…

Explanation : Computers are 5 year property and use half year convention, which is built into the table. However more than 40% was purchased in 4th quarter. Therefore we must use mid quarter convention. 35% is in the first quarter purchase table.

It's the 1simulation of ch 3 in becker and 4th tab.

Thanks …

I really want to learn MACRS before i sleep today…

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

[Qlad]

@ skrier,

rewriting the question and answer….

A Computer purchased for $100000 on march 30th. Other Furniture in the amount of $ 80000 was purchased in November. Compute the MACRS, Convention and depreciation amount.

Answer is 5 yrs MACRS, mid convention and Depreciation amount $35000. How did they get that convention and amount…i can't figure out…

Explanation : Computers are 5 year property and use half year convention, which is built into the table. However more than 40% was purchased in 4th quarter. Therefore we must use mid quarter convention. 35% is in the first quarter purchase table.

It's the 1simulation of ch 3 in becker and 4th tab.

Thanks …

I really want to learn MACRS before i sleep today…

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

[Skrier]

@Qlad see my edited post above, I hope this makes sense to you.

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

[Author]

Replies