[jeff]

Welcome to the Q4 2017 CPA Exam Study Group for REG. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your REG exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

[56_Moves]

@aimhigher,
The IRS classifies personal assets as capital assets. As such, any gain realized from a sale is included as a taxable gain. As you stated though, losses are disallowed.

[Anonymous]

@lentilcounter ,

I hope so, I'm sitting tomorrow! I feel ok overall. I scored pretty well on my Gleim practice exam and my Ninja scores are trending at a decent level. I'm a little worried that I've been memorizing a lot of the MCQ answers, but I've also been making an effort to learnimportant formulas and do the math on problems even when I already know the answer.

[Lentilcounter]

@benj2017

Good luck tomorrow! Please let us know how it went. I have Becker and bought the GLEIM test bank as a supplement. I noticed that GLEIM MCQ/Sims are so much harder than Becker's stuff. How long have you been studying for REG and do you have a tax background? If you did well on the GLEIM practice exam, then I'm pretty sure you are going to ace this exam. There are people who have received high 60s and low 70s on the GLEIM practice exam and then passed with 80+ scores.

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[aimhigher]

The adjusted basis of Ted's partnership interest is $30,000. In complete liquidation of his interest, he receives $10,000 in cash, his share of the inventory items having a basis to the partnership of $12,000, and two parcels of land having both fair market values and adjusted bases to the partnership of $12,000 and $4,000. What is Ted's basis in the two parcels of land?

A.
$8,000 and $4,000

B.
$5,000 and $3,000

C.
$6,000 and $2,000

D.
$8,000 and $0

Correct answer: C

Basis in partnership $30,000
Less: Cash received (10,000)
——–
Remaining basis $20,000
Less: Basis allocated to inventory items (12,000)
——–
Basis left to be allocated to land $ 8,000
$12,000 / $16,000 = 0.75;
0.75 x $8,000 = $6,000 for Parcel 1 (6,000)
——–
Basis in Parcel 2 $ 2,000
Since the fair market value is equal to the basis of the land parcels, the decrease is simply allocated based on the properties' adjusted bases.

I get everything till the $8,000 basis left to be allocated to land. Can someone explain the rest please? REG is tomorrow for me.

2016 - FAR, BEC, REG, AUD
Becker & Ninja Audio

[Lentilcounter]

@aimhigher

liquidating distribution for partnership = beginning basis – money received – unrealized receivables and inventory = basis to allocate.

$30k basis in partnership – $10K cash received = $20K – $12K of inventory items = $8K of basis available to allocate

parcel 1 has a FMV and adjusted basis = $12K
parcel 2 has a FMV and adjusted basis = $4K

Ted's parcel 1 basis = $8K*($12K/($12K+$4K)) = $6K
Ted's parcel 2 basis = $8K*($4K($12K+$4K)) = $2K

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[mashloum]

I have done my exam last Tuesday, and my recommendation is to pay more attention on the SIMs vs the MC

[Lentilcounter]

@mashloum

https://www.another71.com/cpa-exam-forum/topic/potential-reg-sim-topics-from-the-aicpa/

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[emichelle2321]

I have been studying so much for this test, I sit for it on Sunday. And as I'm going through and reviewing today I am so anxious and discouraged because I feel like I am just forgetting stuff i KNOW that i know and confusing everything. I am so discouraged right now but trying to keep at it so I have some form of fighting chance.

This section feels so much harder than the other three. I passed the others all the first time. I have put more effort into this one and feel like i know half of what I need to at this point. Does anyone else feel this way? I am trying to remain positive because that's all I can really do at this point. I just want to be DONE.

[scattershot]

just knocked out FAR a few days ago, starting out on REG now. do you need to memorize amounts (student loan deduction, active losses, etc) and phaseouts, or just generally know that they exist?

[Lentilcounter]

Gross receipts = $1,000,000
COGS = $500,000
Depreciation = $100,000
Charitable contributions = $200,000
Meals/Entertainment = $15,000

What is the taxable income of the C corporation with the information above?

It is my understanding that a C corporation is only allowed up to 10% of AGI in charitable contributions.
$1,000,000-$500,000-$100,000-$100,000-$7,500 = $292.5? If this was an individual, I would say $192.5K.

Not sure if this is correct though.

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[Anonymous]

Hey @emichelle2321, I have been nearly in the exact same shoes as you, although my most miserable exam to study for and take (continuously, I might add) was FAR rather than REG. But the general concept is the same. I also passed my first three exams on the first attempt and I think by that fourth exam you either have the cocky mentality which is most likely to cause a fail, or you attempt to study too much because your poor brain has finally been overloaded, which is definitely what your situation sounds like.

Try to relax, do some meditations, and for my part when I took FAR for the third and thankfully final time, I simply reviewed the NINJA notes I had on hand one final time. No extensive studying or MCQs at that point. Eventually you do absorb the material whether it's done consciously or not. I'm anxious to hear how your exam goes! The best of luck to you and let me know if I can be of any help on your CPA exam journey!

[Author]

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