[jeff]

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Post by Another71.

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

[ndpendentbw]

Hello All, I know I am not a regular on this site, but I am a ninja fan and currently studying for REG. I was hoping someone would be so kind to help with the following question:

Frey Corp. has 1,000 shares of issued and outstanding common stock. Frey’s articles of incorporation permit a stockholder who owns 5% or more of the outstanding stock or who has owned the stock for longer than six months to inspect Frey’s books and records. Ace, who has owned 25 shares of Frey stock for four months, wants to inspect the books and records. Under the Revised Model Business Cor­poration Act, which of the following statements is correct regarding Ace’s right to inspect the books and records?

A.

Ace must wait two months before being allowed to inspect the books and records.

B.

Ace must purchase an additional 25 shares of Frey stock before being allowed to inspect the books and records.

C.

Ace may, after giving five days’ written notice, inspect the books and records to determine the value of Frey stock.

D.

Ace may, after giving five days’ written notice, inspect the books and records to provide a list of Frey stockholders to Ace’s broker.

Why is the correct answer C and not B? She only owns 2.5%…right?

[Anonymous]

hey @ gabe, to your question before if it was nonliquidating it would be the lesser of the basis you already had in the land or the basis you have remaining in your partnership after taking away the cash amount. So it would be 58,000.

@ cracked. Dont worry too much. Most people I talk to dont feel good after leaving the exam. Just forget about it, drink some alcohol, eat some junk food, and relax and try to put your freak out on pause right before the score release.

@ndpend…It is C because articles of incorp or anything cannot prevent the general rule which is that a shareholder can inspect the records after giving proper notice if its for a proper purpose.

[BEACPA]

ndpendentbw

This is a trick question. It's trying to get you to buy in to the idea that the Articles of Incorporation dictate a stockholders rights to inspect the books. This is simply not true. Any stockholder has the right to look a the books as long as they give 5 days notice and it's not for ill gain, such as obtaining a list of stockholders to be placed on a mailing list.

FAR - 2/28/14 PASS Praise be to God!
AUD - 7/5/14 PASS Praise be to God!
BEC - 11/29/14PASS Praise be to God!
REG - 2/28/14 PASS Praise be to God!

[Anonymous]

Just took Becker 2, I am surprised cause once again i finished this exam again in 2 hours, just like the previous final exam and I am a slow test taker. Maybe I am getting comfortable with Becker's structure. Anyway got a 82 rounded up on the MC. Thought this exam was better than the first because it was more challenging, which made it seem more realistic since it got harder each window and there were some questions that made me think I better review that tonight. Sims were good for the most part (except for the last 2) except I once again could not get the research one. I thought for sure I had it, but I realized that research q is one of my weaker areas. This sucks since research is usually thought of as easy points, but at the same time, it probably isnt as proportionally important as the other types of sims.

People keep talking about the Sims being awful for the real exam. Can anyone who used Becker to study talk about whether there really is a big difference between actual exam sims and beckers?

[ndpendentbw]

@cpasucks23 and @BEACPA thank you for that answer. Wow, that was tricky, it completely threw me off, smh.

[s2sylvir]

Can anyone who used Becker to study talk about whether there really is a big difference between actual exam sims and beckers?

There's too many possibilities for SIMs in REG, the exam could test any one of those Becker SIMs and SIMs not covered by Becker. Best advice is just to understand the material and be prepared to use the AL. I wouldn't say being comfortable with Becker's SIMs translates to you doing well on the real exam's SIMs. All too often we start “memorizing” answers, and not the concepts…

BEC - PASS (79)
AUD - PASS (63, 71, 74, 74, 83)
REG - PASS (88)
FAR - PASS (58, 89)

Becker for all + FAR 10 Point Combo

[Anonymous]

can anyone explain the passive loss limitation for LLPs of $5000? I cant find it anywhere in Becker and the explanation is really poor from the Becker Final Exam 2 Reg Sims question 5.

[Anonymous]

Thanks. Yeah, I will just wait for score release and see what happens. As said above, know how to use the AL. The SIMS on the exam can be plucked from who knows what…know the material well and also where within the AL you can find it. Good luck to you all and keep me in your prayers/thoughts 🙂

[s2sylvir]

@cpasucks23

If I'm understanding your question correctly, the reason there's a deductible loss is because of the rental activity having a net income of $5,000.

You can only deduct passive losses against passive income. Thus, of the entire loss from the LLP, only $5,000 can be deducted, the rest are carried forward.

BEC - PASS (79)
AUD - PASS (63, 71, 74, 74, 83)
REG - PASS (88)
FAR - PASS (58, 89)

Becker for all + FAR 10 Point Combo

[NJPRU]

@cracked – I for sure will keep you in my thoughts and prayers and will be looking for the REG Q1's family's scores. Have some faith! Back when I took BEC, I was pretty sure I had failed. I wrote a whole story in the BEC test thread about how I wholeheartedly gave it my all and still thought I failed. I ended up getting an 85 and I am still in shock and awe mode about how that even happened. Have some faith, even if it just a little bit – you really never know when the Universe will give something back to you.. a la.. a passing score! Best wishes!!

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[NJPRU]

Quick question about the S Corp AAA account.. does this increase and decrease with the same types of events that would increase and decrease the basis of a SH (not including his or her basis in contributed property/cash)? I don't think I've seen a problem for this type of item (i.e. calculating it) in Becker's MCQs. Thanks in advance. 🙂

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

@s2sylvir…thanks! totally makes sense now

[NJPRU]

LOL only took me forever to figure out what separately and non-separately stated means on a K-1. smh

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[s2sylvir]

@NJPRU

EXPLAIN TO ME!! What is separately and non-separately stated?? I never understood it >.<

@cpasucks23

Np!!

BEC - PASS (79)
AUD - PASS (63, 71, 74, 74, 83)
REG - PASS (88)
FAR - PASS (58, 89)

Becker for all + FAR 10 Point Combo

[NJPRU]

If I am deciphering the questions correctly, it's basically asking what is included in ordinary business income on the k-1 (non-separately stated), and what is separately stated from ordinary business income (i.e. dividends, deductions, etc). I think this is originally why Lauren had asked for a more comprehensive list of items that are separate and non-separate (in order to determine why other items roll into income). All the book really says is “passive” and “non-passive” income and loss.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Author]

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