[jeff]

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Post by Another71.

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

[WANNABE_CPA]

What is a lookback rule?

A.

The taxpayer is required to recalculate the annual profit reported on a contract.

B.

The taxpayer is required to defer recognition of income.

C.

The taxpayer can delay recognition of income.

D.

The taxpayer deducts the costs during the period and reduces that period's revenue.

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

[Anonymous]

Lookback rule, D?

[WANNABE_CPA]

Correct is A ,

Under a lookback rule, the taxpayer is required to recalculate the annual profit reported on a contract. In other words, it requires the taxpayer to substitute the actual costs and revenues for the estimated revenues and costs used in the percentage-of-completion method.

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

[Gabe]

A. Think of it as, when you're done with a project, you LOOK BACK and see how close your estimates were to the actual costs/revenue.

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

[WANNABE_CPA]

I am having a moment of doubt right now regarding Blaw. That was my weak section last time, and i feel like i am still not good at it. Still have most of the topics of Blaw that i am not confident with. I want to take a final test on Sunday before starting final revision for my test on 25th. So thinking of exclusively spending time on all topics, subtopics of Blaw individually today and tomorrow. I feel somewhat ok with Tax, i had original plan to keep doing ninja mcqs from all topics which now does not feel right.

I am trending at 64% right now, with only 21% on Blaw. I have just attempted about 340 questions from Ninja yet.

Motivation and strategy for Blaw lacking, help 🙁

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

[Anonymous]

EDITED:

Voidable Contracts:

[SIM] 1-S; 4-I; 3-M

S – Simple Duress

I – Incompetency => Mental Incompetency

I – Influence => Undue Influence

I – Inducement => Fraud In the Inducement

I – Intoxication

M – Minors

M – Mistake => Mutual Mistake

M – Mistake => Unilateral Mistake – Material or other party knew about the mistake

Prior….

Voidable Contracts:

[SIM] 1-S; 5-I; 3-M

S – Simple Duress

I – Incompetent =>Legally Incompetent Persons

I – Incompetency => Mental Incompetency

I – Influence => Undue Influence

I – Inducement => Fraud In the Inducement

I – Intoxication

M – Minors

M – Mistake => Mutual Mistake

M – Mistake => Unilateral Mistake

[NJPRU]

Feel better Gabe! I'm feeling VERY run down today. I developed a case of insomnia through studying for this exam and I think its finally catching up to me. Took a half day from work today to sleep and work on R7. ARGHHH!

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

IM GOING TO BE A CPA!!!!!

[NJPRU]

Amor: I could have sworn that if you were legally adjudicated as incompetent that it would be a voided (not voidable) contract.. and with a unilateral mistake – it's generally enforceable (and not voidable) UNLESS it's a material mistake and the other party new about the mistake.. then that would make it voidable.

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

@NJ, thanks for correcting my post. I edited it.

So, “legally” incompetent means there's already a court's formal judgment?

You're right about the unilateral mistake. I had it hyphenated (with ‘material') on my old notes from excel file but missed to catch it when transferring it to my word notes. I am glad to correct my notes now too.

Thanks again!

[Anonymous]

@NJ, what about the “Mistakes as to material facts”?

I've categorized this item under unenforceable. Would that be correct?

[NJPRU]

@Amor – to my knowledge, if it a material (unilateral) mistake, and the other party knew about it, then it's voidable; however, if the other party did not know about it, then it's enforceable.

I believe Olinto gave the following event as an example:

https://www.reuters.com/article/2015/01/21/us-jpmorgan-gm-court-idUSKBN0KU2AY20150121

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

IM GOING TO BE A CPA!!!!!

[lauren725]

Two individuals are planning to form a business with equal ownership. The individuals would like to limit their personal

liability, avoid double taxation, and be active in the business. Which of the following organizational structures would

meet their requirements?

a. General partnership.

b. Limited liability company.

c. C corporation.

d. Limited partnership

answer: B – I just want to confirm- this makes sense to me but I guess I got confused when I read that “most states now allow only one person to form an LLC”. Does this mean that only one person can form it, but it can have multiple members?

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!

[NJPRU]

Lauren – the way that I remember LLC is two fold.. one, it's taxed like a partnership which we learned in R4 and two, my cousin operates his business as an LLC even though he is the only member in the company. Yes, he has employees underneath him, but no one else is a partner in the company.

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

IM GOING TO BE A CPA!!!!!

[s2sylvir]

@lauren725

LLCs can be formed by one person or multiple people. LLCs can be taxed in one of 4 ways: sole proprietorship (aka single member LLC), partnership, S corp, and C corp.

If one person forms it, it is a single member LLC, reported on an individual's 1040, Sch C (as business income).

If multiple people form it, then it's multiple members, an becomes it's own entity (partnership, C corp, or S corp depending on what the members decide). For NJPR's comment above, by default an LLC with multiple members is a partnership. C corporation and S corporation statuses must be elected.

I think that clears up your question… Hopefully!

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

Becker for all + FAR 10 Point Combo

[lauren725]

Thank you both! That clears it up!!

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!

[Author]

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