[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

[wmcpa]

@Taherkq, I think the answer is D.

For S-corp, the profit/loss is determined by the number of *days* the person/trust/estate has stock in it.

Facts:

1) Mary had stock from Mar 1 through Nov 30, making it 275 days out of 365.

2) Mary owns 40% for the period in 1)

3) Mary owns 20% from Dec 1 through Dec 31, making it 31 days out of 365

Calculation:

1) & 2) (275/365)*40%*10,000= $3014

3) (31/365)*20%*10,000=$170

add 1) and 3): $3,184

---

p.s. Merry Christmas and Happy Holidays to all! I hope you're taking a break to enjoy the day! I took a break from studying, but will be on full force next week. Anyone taking REG in February?? I have too many commitments (work related as well as moving) to take REG in January.

FAR: 83
REG: 69, 69, retake Q1 2015
AUD: Q2 2015
BEC: Q2 2015

[terryharm]

I came up with

D as well , Merry Christmas all

BEC: 81
FAR: 75
AUD: 81
REG: 85

PA license Pending..

[funtiks]

can someone explain this passage from becker to me? I dont understand what are trying to exaplin

STOCK REDEMPTION:

TYPES OF STOCK REDEMPTION:

A. Proportional redemption: taxable dividend income (to shareholder ordinary income.

– Corporation redeems or cancels the stock pro rate for all shareholders

B. Disproportional redemption: Sales by shareholder subject to taxable capital gain/loss to shareholder.

– Disproportional means that there has been meaningful reduction in shareholder ownership interest

– Percentage ownership after redemption must be less than 50%, and must be less than 80% ownership before redemption

– Complete 100% termination of shareholders interest is considered disproportional

C. Partial liquidation: (stock held by non-corporate stockholder) treated as exchange of stock, not as dividend

D. Complete buy-out of shareholders: Shareholders entire interest is redeemed, and the transaction is treaded as an exchange of stock

E. Redemption not equivalent to a dividend = traded as an exchange of stock

FAR - 76*, 73, 85
BEC - 69, 72, 78*, 80
AUD - 72, 71, 90
REG - 71, 74, 85

AFTER 3 YEARS I'M DONE!!!

[Mika]

Ninja #199

Which of the following types of conduct renders a contract voidable?

A. Mutual mistake as to facts forming the basis of the contract

B. Undue influence by a dominant party in a confidential relationship

C. Duress through physical compulsion

D. Duress through threats of a civil suit

My initial thought was B.

But I am wrong.

The correct answer is C.

Duress is a wrongful act that compels contractual agreement through fear. Although threats of a civil suit are not considered duress legally, physically threatening a person to do another's bidding is definitely duress and any such contract is illegal and can be voided.

But isnt C would make the contract VOID instead of VOIDABLE??

REG - 80 (02/13/2015) Roger + Ninja Flash Card + Ninja MCQ + Becker's Note
FAR - 84 (05/29/2015) Roger + Ninja MCQ + Some Wiley book questions
BEC - 77 (08/27/2015) Roger + Ninja MCQ + Half Wiley book questions
AUD - 87 (08/28/2015) Roger + Ninja MCQ + Half Wiley book questions

[blueberrycpa]

FAR- TBD
BEC - 75
REG - 76
AUD- TBD

[Gabe]

@Mika Becker has a similar question and the same answer…I also thought duress under physical compulsion would be VOID. Anybody else?

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

[Tncincy]

Hope everyone had a good holiday. Getting ready to get the books out again. I hope I didn't relax too much. Really want today to be a good, thorough study day.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Gabe]

I'll be here all day @tncincy!

Full disclosure: I am battling some horrid cold/possible flu, so if my questions seem elementary that may be why 😉

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

[Gabe]

Brown Corp., a calendar-year taxpayer, was organized and actively began operations on July 1, 2014, and incurred the following costs during 2014:

Legal fees to obtain corporate charter $45,000

State incorporation fees 5,000

Temporary director expenses 2,000

Commission paid to underwriter 25,000

Other stock issue costs 10,000

Brown elects to deduct its organizational costs. In 2014, what is the maximum amount of organizational costs that Brown can deduct?

A.$4,633

B.$5,000

C.$5,200

D.$6,567

Can anyone explain why the answer is A? I took the $5k allowable deduction PLUS the amortized amount to get to $6,567. However, the answer SUBTRACTS the two.

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

[NJPRU]

Just finished the lectures for R2. HOLY MOLY!

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

IM GOING TO BE A CPA!!!!!

[terryharm]

I got 6.56K as well what test back was this question in, if its ninja how do we find out if the answer is incorrect?

BEC: 81
FAR: 75
AUD: 81
REG: 85

PA license Pending..

[markeckerle]

Anyone else using Yaeger CPA Review with the Wiley text? If so, does anyone else think that the Business Law questions in the text book are good enough or should I do additional questions in the NINJA test bank? I really want to focus on the Tax section so I am curious to see if that review of BL would be sufficient.

FAR - 66, 76
AUD - 71, 63, 84
REG - 68 , JAN 15
BEC - FEB 15

[Gabe]

@terry no idea..Becker had the same answer and same vague explanation

Anyone else have an idea as to why they'd be subtracted?

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

[funtiks]

im getting so fuking sick of all those trick questions REG has…..

@Gabe

its over the 50k phaseout amount

47k/180= ABC * 6 months ($1566 that your amortization) + $5000

LESS: $2000 over 50k phaseout

FAR - 76*, 73, 85
BEC - 69, 72, 78*, 80
AUD - 72, 71, 90
REG - 71, 74, 85

AFTER 3 YEARS I'M DONE!!!

[lab2008]

@Gabe, I also don't know the answer. I would have added 45+5+2=52 since I know underwriting and stock issues costs aren't included. Then, I would subtract the $5,000 and get $47k and divide this by 180 months. ($261.) But since it started in July, I would divide that in half and ADD it to $5,000..so now i'm curious as to what the answer is and why. Never heard of subtracting it.

3 out of 4 passed and sitting for FAR on May 31. Will lose credit for Audit if I don't pass FAR by Aug 4. I love leases and bonds.

[Author]

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