[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Skrier]

@Qlad, if I am understanding the question correctly, I would say the Mid-Quarter convention would apply, because the majority of depreciable property was placed in service in the 4th quarter. The rule is 40% of property placed in service in Q4 would require the Mid Quarter convention. In this case 500,000/600,000= 83%. So then you would depreciate based on the Computer being placed in service as of Mid February instead of 3/30. So the depreciation on the computer would be $35,000 (100,000 x .35)= 35,000 Depreciation rate of 35% is calculated as 200% Or 2 x 10.5/12= 1.75. Since the computer is a 5 year asset the standard depreciation rate would be 20% and the accelerated depreciation rate would be 1.75 x 20% = 35%. Hope this helps.

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

[Skrier]

@Qlad, if I am understanding the question correctly, I would say the Mid-Quarter convention would apply, because the majority of depreciable property was placed in service in the 4th quarter. The rule is 40% of property placed in service in Q4 would require the Mid Quarter convention. In this case 500,000/600,000= 83%. So then you would depreciate based on the Computer being placed in service as of Mid February instead of 3/30. So the depreciation on the computer would be $35,000 (100,000 x .35)= 35,000 Depreciation rate of 35% is calculated as 200% Or 2 x 10.5/12= 1.75. Since the computer is a 5 year asset the standard depreciation rate would be 20% and the accelerated depreciation rate would be 1.75 x 20% = 35%. Hope this helps.

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

[Anonymous]

UCMCPA and Qlad –

I'm studying with Becker and probably Wiley on this one. I've used Becker on all the other exams and so far I have not been disappointed. Becker definitely was right on with content and preparation.

[Anonymous]

UCMCPA and Qlad –

I'm studying with Becker and probably Wiley on this one. I've used Becker on all the other exams and so far I have not been disappointed. Becker definitely was right on with content and preparation.

[Anonymous]

#Journhi,

Yes, the co-sureties take on the debt of the third surety that went bankrupt. For example if three co-sureties are $50K each their original % of total debt is 33% each. If one goes bankruptcy the remaining two are now 50% co-sureties. Hope that makes sense.

[Anonymous]

#Journhi,

Yes, the co-sureties take on the debt of the third surety that went bankrupt. For example if three co-sureties are $50K each their original % of total debt is 33% each. If one goes bankruptcy the remaining two are now 50% co-sureties. Hope that makes sense.

[Qlad]

@skrier… ithought so too but the answer says ignore the bldg…and in the same sim…there is bldg purchased on 9/30 for 800K and equipment in nov. for $1m….but the anser says ignore mid Q for equipment….so …was hoping if someone cud clarify…if there is a specific rule or any thing….

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

[Qlad]

@skrier… ithought so too but the answer says ignore the bldg…and in the same sim…there is bldg purchased on 9/30 for 800K and equipment in nov. for $1m….but the anser says ignore mid Q for equipment….so …was hoping if someone cud clarify…if there is a specific rule or any thing….

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

[Skrier]

@Qlad, now I am confused, if it says not to use mid- month and ignore mid quarter, what are they suggesting should be used, unless I am not understanding the two posts you provided.

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

[Skrier]

@Qlad, now I am confused, if it says not to use mid- month and ignore mid quarter, what are they suggesting should be used, unless I am not understanding the two posts you provided.

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

[Qlad]

Skrier are u using becker?….it is the 1st Sim in ch 3, tab 4, question 5 and q 8.

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

[Qlad]

Skrier are u using becker?….it is the 1st Sim in ch 3, tab 4, question 5 and q 8.

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

[UCMCPA]

Qlad.. I'm using becker.. For that sim, on question 5, the equipment will either be half year or mid quarter, period. The fact that they bought real estate does NOT impact this as they do not fall in the class life and are always mid-month. So you ignore the fact they bought the building and only look at the equipment.

For question 8, same thing, the buying of equipment doesn't change the bldg purchase. You can't have a building on mid-quarter or half year convention, it will be mid-month.

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

[UCMCPA]

Qlad.. I'm using becker.. For that sim, on question 5, the equipment will either be half year or mid quarter, period. The fact that they bought real estate does NOT impact this as they do not fall in the class life and are always mid-month. So you ignore the fact they bought the building and only look at the equipment.

For question 8, same thing, the buying of equipment doesn't change the bldg purchase. You can't have a building on mid-quarter or half year convention, it will be mid-month.

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

[Kenada]

I have the same understand as UCMCPA for MACRS and Buildings.. I was very sure it was Mid-month no matter when it was bought in the year.

The one that is a Half year Convention or Mid Quarter when the Equipment is bought at the last Quarter (40%)

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

[Author]

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