[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/

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

[pia ach]

Thanks coocooper i got confused with the defination of 1231 asset..

can you help me with the below question too..

On day 1, Jackson, a merchant, mailed Sands a signed letter that contained an offer to sell Sands 500 electric fans at $10 per fan. The letter was received by Sands on day 3. The letter contained a promise not to revoke the offer but no expiration date. On day 4, Jackson mailed Sands a revocation of the offer to sell the fans. Sands received the revocation on day 6. On day 7, Sands mailed Jackson an acceptance of the offer. Jackson received the acceptance on day 9. Under the Sales Article of the UCC, was a contract formed?

a. No contract was formed because the offer failed to state an expiration date.

b. No contract was formed because Sands received the revocation of the offer before Sands accepted the offer

. c. A contract was formed on the day Jackson received Sands' acceptance.

d. A contract was formed on the day Sands mailed the acceptance to Jackson

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[NJPRU]

@pia – the answer is d. in this case the offeror is a merchant and the information in the paragraph contains a merchants firm offer. A firm offer promises to keep an offer open even if not supported by consideration and are not revocable if the promise is given via in writing or made by a merchant. Here, the merchant promised to keep it open and thus, cannot revoke the offer (it's in writing).

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

IM GOING TO BE A CPA!!!!!

[pia ach]

Thanks NJPRU , your explanation on AMT was also very helpful .

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[lauren725]

Can anyone confirm that the ES payments made by individuals CAN be based on PY tax even if PY tax was zero? I know this is not the rule for Corps, but I got a question on this and it confused me. Just want to get this straight!

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!

[FIFOisbetterthanLIFO]

FAR - Passed (82)
BEC - Passed (76)
AUD - Passed (89)
REG - Passed! (81)
AICPA Ethics

Licensed CPA

[PasstheCPA7]

@ Lauren – nope. If prior year had a zero tax liability – we can't use prior year. We must use 100% of the current year and/or 110% (if AGI is over $150,000). Hope that helps.

[thelonewolf527]

@PasstheCPA7 there's a Becker question that states that if someone files in a year with 0 liability, they still can use the previous year. I assume that's where Lauren is confused

AUD - 08/04/14 - 83
FAR - 11/29/14 - 80
REG - 02/26/15 - 89
BEC - 05/30/15 - 86

DONE!

[Gabe]

How would one use PY as a basis for the ES payments if liability was 0?

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

[NJPRU]

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

According to the 1040-ES, you can only use the PY method if you had a taxable liability in the prior year. I remember seeing these questions in the MCQ. I hope this helps!

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

IM GOING TO BE A CPA!!!!!

[Gabe]

^^ that's what I thought.

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

[Gabe]

Clip-Joint, an S corporation hair salon, distributes land with an adjusted basis of $10,000 and a fair market value of $50,000 to its sole shareholder, Louise. Louise's basis in the corporate stock before distribution is $90,000. What is Louise's basis in the land after the distribution?

A.

$90,000

B.

$40,000

C.

$10,000

D.

$50,000<— correct answer

I have seen 2 questions, one uses AB of land, the other uses FMV. Why is the FMV used here? Because it's an S corp?

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

[NJPRU]

I mean if that's the case, wouldnt it be 40,000? 90-50=40?

It looks like it has something to do with a built in gain of 40k but I'm not entirely sure.

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

IM GOING TO BE A CPA!!!!!

[thelonewolf527]

I think Louise's basis is 40,000, but the property basis is 50,000

Becker doesn't talk much about S Corporation distributions

AUD - 08/04/14 - 83
FAR - 11/29/14 - 80
REG - 02/26/15 - 89
BEC - 05/30/15 - 86

DONE!

[NJPRU]

Yeah.. not a fan of the second practice exam. 91, 87, 50 (a 50?! wtf is that!).

And then the SIMs were just dismal. 🙁

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

IM GOING TO BE A CPA!!!!!

[Gabe]

@NJ don't let it get you down. You know your stuff.

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

[Author]

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