[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

[terryharm]

In order for an accrual (bonus accrual) to be deducted on the tax return it needs to be paid by 3/15 correct. Are there any exceptions to that rule that anyone has come across? I ask because my company just changed the pay date for our accrual from beginning of march to the 31st, was wondering why they would do that won't they lose the deduction?

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

PA license Pending..

[terryharm]

FAR: ugg took that one twice, really concentrate on the formulas, partnership, and gov't govt/non profit reporting

BEC was easy for me, since i have a ton of experience with alot of different things, i don't remember anything in particular jumping out at me on this one, cash flow thats right cash flows on both BEC and FAR,,, doing knowing cash flow statement…SOX, Economics,, Becker did a good job on that one.. for me..

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

PA license Pending..

[Gabe]

@terry did you strictly use Becker for REG? Or Ninja too? Did you feel either were more like the exam questions this time around? SIMS?

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

[terryharm]

@rachel525 because you can deduct medical expenses for family members even if you can't claim the family member..

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

PA license Pending..

[Gabe]

@the_amyam I took FAR 4 times (yep 4)…the first time was my first ever exam and I freaked out basically. The other 2 times I was working in Public and didn't get any chance to study. The 4th time I was at a new job and was “on a roll” (I passed BEC in July, AUD in October) then passed FAR in November. For FAR I think what really helped me was knowing the journal entries. There is a website with all the basic JEs you'd need to know…it helped with MCQs and definitely with SIMS. I can't find the link now, but I know it's been posted a few times…there is also a governmental google + page that had journal entries and explanations…I think that is what throws some folks off- if you have never done governmental/NFP accounting and you get a governmental/NFP heavy test, it blows. Also, I knew my weak areas (bonds, cash flow statement) and drilled down on those quite a bit. Also, know your time frame. I spent 3 months studying for FAR and that was way too much time. I forgot stuff by the end…I find the less time I have the more that I focus when I am studying

BEC- Actually passed on my first try. ha! It's such a hodge podge. Lots of cost accounting (know variances) and miscellaneous topics (econ, general business). For me, it was cost variances and economics that I struggled with.

For my re-takes where I passed I used NINJA pretty exclusively, especially with FAR, since I had memorized all the questions. Hope this helps! If I find the links I'll email them to you 🙂

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

[terryharm]

just becker I was new to the whole process so I didn't know about ninja, comparing ninja, becker, wiley, and gleims SIMS Generator for REG, and ninja/Becker for FAR/Audit I don't think any of them were close to the exam questions. many of the questions repeat between these test banks and I would like to have seen more exception or trick questions in the test banks.

I think its the trick questions that trip us up. Maybe ninja could have two levels, first level that drills us on the general rules, and then a second level that phrases the questions with one of those tricky off the wall facts that we could practice that you need to think through the answer a little more. .

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

PA license Pending..

[The_AmYam]

Thanks Gabe and Terry!!!!

I HATE doing cash flows but at least I have done/do them in “real life.”

Thanks for the tips on the websites – I am going to look into those after I sit for this one.

I've decided I'm moving on to FAR regardless if I pass REG or not.

REG - 81
FAR - 79
AUD - 94
BEC - OCT 15

[Gabe]

@the_amyam Yeah I dwelled too long on FAR…I was like I HAVE to pass FAR before I do anything else. Once I moved on and sat for AUD and passed, it was like OK, clock is ticking- time to go. I think once you pass the first one you get a fire under your butt- atleast I did. I have a co-worker who passed her first exam and spent a good year “celebrating”, now she has to pass them all again :/ No thank you.

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

[rachel525]

@terry Oh right.. Thank you!

[Anonymous]

For the current year, Seth and Sheila intend to file a joint return. Seth expects to earn $35,000 in wages from his teaching job. He is covered by the university's pension plan. Sheila is a volunteer at their son, Stephen's, school. In addition to Seth's income, they received $500 in interest income and $50 in prize winnings from a local radio contest. Each would like to make a deductible contribution to an individual retirement account for the current year. They also believe they will be eligible to claim a tax credit for these contributions. Which of the following is correct?

I understand 99% of this question but what tax credit are they referring to?

[rachel525]

Brown Corp., a calendar-year taxpayer, was organized and actively began operations on July 1, 2013, and incurred the

following costs:

Legal fees to obtain corporate charter $40,000

Commission paid to underwriter 25,000

Temporary directors’ meetings 15,000

State incorporation fees 4,400

For 2013, what amount should Brown Corp. deduct for organizational expenses?

a. $1,980

b. $2,814

c. $5,940

d. $6,812

How come the answer is A and not D?

My calculations:

40,000 + 15,000 + 4,400 = 59,400 – 5,000 = 54,400 * 6/180 = 1,813 + 5,000 = 6,813

[Anonymous]

@cpasucks23 – they're referring to a credit for contributing to retirement accounts. The answer is false b/c a credit does not exist for IRA contributions. However, an adjustment does exist.

[Gabe]

@rachel

its over the 50k phaseout amount

54.4k/180= ABC * 6 months ($1813 that your amortization) + $5000

LESS: $4,400 over 50k phaseout

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

[On2Sum]

Hello All;

Here's a question for you.

In 2013, a calender year taxpayer purchased the following for business use.

In March 5, 2103 Office Desk and chair for total of $3,000

In October 15, 2013 a Photo-Copier in the amount of $10,000

How much would her regular MACRS depreciation deduction be for the year 2013?

a.) $957

b.) $1100

c.) $1250

d.) $2029

FAR - 79
REG - 76
AUD - 94
BEC - 77

DONE! DONE!! DONE!!!

"Success is not final, failure is not fatal; it is the courage to continue that counts"
-Winston Churchill

[Anonymous]

On September 10, Bell Corp. entered into a contract to purchase 50 lamps from Glow Manufacturing. Bell prepaid 40% of the purchase price. Glow became insolvent on September 19 before segregating, in its inventory, the lamps to be delivered to Bell. Bell will not be able to recover the lamps because:

A.

Bell is regarded as a merchant.

B.

the lamps were not identified to the contract.

C.

Glow became insolvent fewer than 10 days after receipt of Bell’s prepayment.

D.

Bell did not pay the full price at the time of purchase.

Explanation says it's ‘B' because the goods in the sales contract weren't identified. This seems technical to me considering these types of questions are almost always general in nature and thus never specify exactly what kind of good beyond a lamp or a car. How am I supposed to know Bell Corp. wasn't just asking for a vanilla batch of 50 “lamps”?

[Author]

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