[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

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]

@amor based on the definition you described and becker provides – that is true. They would bear no liability if the maker/drawer were to default. The liability would stay with the person who gave them and/or signed the note/draft before them (if they didn't sign “without recourse”. Angel's example is really good!

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

I think the reason it's confusing is the concept that someone who endorses a Note can be liable. Once you understand that concept, it makes more sense.

So let's say there are 3 endorsers on a Note from Bob. Al (first endorser), Steve (second endorser), and Lisa (final endorser). Lisa will not be liable unless she signs the note over to a 4th person. When the Note comes due, she's going to go after Bob first (the guy who, originally, signed the Note). If he defaults on the Note, it's within her rights to go after Al and Steve to collect her money.

Why is this? Because the Note has value and, presumably, the Note was endorsed and signed over from Al to Steve and then from Steve to Lisa for some consideration. For example, Bob created the original Note for $4,000 and gives that Note to Al. Al buys a machine from Steve but instead of paying cash, he signs over the Note from Bob because that Note has a defined value ($4,000). Steve does the same thing with Lisa.

[NJPRU]

really really need to bury SAGWEGCTI into my brain and also WAFTEED! ahhh – other than that, time to move onto R8. WOOT WOOT!

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

I started R8 last night and am, slowly, making my way through it now. Suretyship is a bit tricky but Agency is, mostly, common sense and straightforward. After lunch I'm going to hit Business Structures.

[NJPRU]

@Angel – seems like you are really ahead of schedule – why wait until May to take the exam?

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

I might take it sometime in April. That's looking more likely now. I haven't updated my signature in awhile (hoping to add a passing BEC score on Tuesday).

But my thinking with each portion is to not take it until I feel fully prepared. It means that I'm going slower (only 1 exam per test window) but I've felt prepared going into all 3 of the ones I've taken. So I'm playing a balancing act of not wanting to take an exam too soon before I'm ready and also not pushing it off too far where I've forgotten everything too.

Right now I figure I can have all the lectures and first pass of the MCQ and Sims done in Mid-March. It looks like the lectures are a lot shorter than the Business Law ones but I think it's safe to assume it's going to take longer to get through the material since it's much more calculation and formula heavy. So my plan is to get through the material in Mid-March and give myself a solid month to study which puts me taking the exam sometime in April. Ideally I'd like to feel prepared enough to take it before the first score release window closes and, hopefully, just be done with all of this.

[lauren725]

*nerd alert* money laundering is so interesting! Daydreaming about being in the FBI right now. Ok back to reality…………

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 – I totally agree. I was actually involved in my company's BSA/AML audit for one of our business units. Learned all about FINCEN and CTR/SARs. It was really interesting!

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

IM GOING TO BE A CPA!!!!!

[lauren725]

Starting to go back through and face some problem areas via progress tests. This is an area in individual tax I sometimes get tripped up on when deciding to use the Basis or FMV to calculate the loss. Does anyone have a good explanation or way they remember this? I feel like the explanation in Becker is very short and I get confused…

During the current year, Tarbet's residence was destroyed by a hurricane. Tarbet's basis in the propertywas $150,000. The

fair market value determined by an appraiser shortly before the hurricane was $450,000. In November of the current year,

Tarbet received $300,000 from the insurance company. Tarbet's adjusted gross income was $75,000 and she did not have

any casualty gains during the year.What total amount can Tarbet deduct as a current year casualty loss itemized deduction,

after the application of the threshold limitations?

a. $450,000

b. $0

c. $142,400

d. $75,000

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 key to this is remembering when doing a casualty and loss problem for individuals (slightly different rules for corporations) is that you have to first take the LESSER of the Basis of the property or the decline in FMV.

Here, since it was completely destroyed the decline in FMV is 450,000.

Then, you look at the basis lost which is 150,000.

You would then take the lesser of the two which is the basis of 150,000.

Finally, because the insurance reimbursement of 300,000 was more than the basis lost, you will have 0 to deduct.

So, to summarize, always look for the basis and compare it to the decline in FMV and always take the lesser of the two.

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

That's as clear as crystal.

@NJ, thanks!

Keep them coming.

[Anonymous]

BTW, what if it was not decline?

Opps, I thought decline was the difference between basis & FMV (150,000 – 450,000). Geez. I am lost with everything.

I took my final practice test and scored 56% only.

Sched K & K-1 and business tax forms got me.

[lauren725]

Thank you NJ. I just have to remember the LESSER rule and I think I will be good on that. There are only a few questions like that that tripped me up but those are the types the examiners love to use I am sure! Sometimes just talking these things out helps the most!

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!

[lauren725]

Amor, when do you take the test?

If there was no decline, then you wouldn't take the casualty loss deduction. Is that what you are asking?

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]

I rescheduled from 2/20 to 2/23. And I am extremely nervous, beyond words to describe.

I am wondering if it would be relevant if a property's FMV goes up or down in value, thus would result in actual casualty loss or what. Oh well, never mind. I am just overthinking and losing my train of thought.

I am having some mental block.

Next question/topic please, LOL.

[Author]

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