[jeff]

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Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Post by Another71.

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

[NJPRU]

The question specifically asked for “What is the amount that must be allocated to goodwill at the time of purchase?”. You are correct, at the end of the year you would amortize the 20,000 by 180 months and then multiply by the applicable amount of months. Goodwill doesn't have the 5,000 deduction and then amortize the excess like organizational and start-up expenses do (I made that mistake when I first saw a problem about it).

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

IM GOING TO BE A CPA!!!!!

[WANNABE_CPA]

@AmorD , Goodwill is amortized for tax purposes.

This is from C corporations, and fairly important point to be tested on.

From the Book:

Goodwill/covenants not to compete/Franchises/trademarks/trade names : Amortized on a straight line basis over 15 year period beginning with month such intangible was acquired.

Pass key says:

Tax Rule: Amortized on straight line

GAAP rule: Not amortized, Tested for impairment.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[WANNABE_CPA]

@NJ .. “RTMFQ” ughh

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[NJPRU]

Good news is that you have the concept down. I'm sure during game time, you'll have RTMFQ stuck in your head again!

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

Thanks for the clarification. I got confused with switching FMV and NBV as basis. Watching them like a bouncing ping pong ball from left to right and right to left made me doubt and become fickle minded.

Hopefully I won't miss this kind of question in case I see it in the actual test.

[WANNABE_CPA]

@AmorD, Thanks for the motivation, i don't think the previous score really matters, everytime we take the test, it is like a fresh start with different pool of questions. It feels little safe though, as i was not expecting even that score with my last preparation.

Did you mean progress report about Mcqs and Sims for the last test or my study progress? I have not touched Sims yet, still hanging around trying to finish Blaw and reviewing Tax and rest of covered Blaw and ethics.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

@Wannabe, I meant from your actual REG test. I scored 72 for my first AUD take and my performance report says weak on MCQ but comparable on SIMs.

[NJPRU]

BOTH of you will do just fine this time. Your work will pay off and you will pass! Believe in yourselves and good things will prevail. 🙂

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

IM GOING TO BE A CPA!!!!!

[WANNABE_CPA]

@AmorD , i just looked it up to answer your question 🙂 .

Says,

Weaker for both Mcqs and Sims lol.

Stronger and comparable in Tax

Weaker in Ethics, Blaw, Tax process..

I never understand, what is covered in Tax process .

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[lauren725]

SAGWEGCTI! I made it to R8!

Hoping to be done reviewing and finishing ch.8 by this weekend. I need to still review some of this other blaw, I did better the second time but I feel like I forget some of those things just a day or two later if I don't keep looking at it, woof.

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[Anonymous]

Question: Indicate whether FULLY INCLUDABLE, PARTIALLY INCLUDABLE, or NOT INCLUDABLE in the gross estate.

Insurance proceeds (payable upon decedent’s death) directed by decedent to be paid to his son—decedent had power to change beneficiary, but had not exercised that power).

Answer: Fully includable

Explanation: Gross estate includes all property to which the decedent had incidents of ownership at death.

I bought a term life insurance a few years back and the beneficiary was my husband. The following year of purchase, I decided to change my beneficiary in favor of my son. So if I die later and did not change any of it, the proceeds of that life insurance will be included in my gross estate? I thought I bought a life insurance policy which is tax-free and that my beneficiary will have to enjoy the entire proceeds.

[Anonymous]

Question: Indicate whether FULLY INCLUDABLE, PARTIALLY INCLUDABLE, or NOT INCLUDABLE in the gross estate.

Interest income earned by the decedent before his death and paid to his estate after his death and paid to his estate after his death.

Answer: Fully includable.

Explanation: All property entitled to be received, including income in respect of a decedent, is fully includable in the gross estate.

I thought all the earnings of the decedent prior to his death are part of the last ITR (Form 1040) his family/representative has to file, but NOT in his gross estate (Form 1041).

[Gabe]

@amor I thought I read somewhere that it can be included in either, but you have to make an election for it to be made in the last income tax return.

I agree with NJ, you ALL are going to do amazing and I will not see you next Quarter 🙂

CPA, CFE
CISA- Experience will be completed by August 2016

[Anonymous]

WASH SALE

Calculate G/L

Sold 500 shares of XYZ Corp. stock at $20 per share. Green purchased these shares two years prior at $22 per share. Three weeks subsequent to the sale, Green purchased 100 shares of XYZ stock at $18 per share.

Answer/Solution:

($800)

In this example, three weeks prior to the sale of 500 shares of XYZ Corp. stock, Green purchased 100 shares of the XYX Corp. stock. For purposes of applying the wash sale loss disallowance rule in order to determine loss recognized, the purchase price of these 100 shares is irrelevant, but the purchase price would be relevant to determine the basis of these 100 shares. So, with respect to the loss on the sale of the 500 shares, Green cannot recognize (deduct) the loss on 100 shares of the 500 shares sold. The loss per share is $2. Because Green can recognize the loss only with respect to 400 of the 500 shares sold, the recognized loss is $800: $2 per share loss times 400 shares for which the loss can be recognized.

Can anyone break it down for me please? I totally do not understand the logic of wash sale rule.

Thanks!

[Anonymous]

I surfed online and found an article with a simpler explanation.

Thank goodness!

500-sh $22 = 11,000 Purchase

500-sh $20 = <10,000> Sale……….(1,000) Loss

100-sh $18 = 1,800 Sale

1,000 / 500 = $2 x 400* = ($800) Allowed Loss

*500-100 = 400 net shares sold

[Author]

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