[jeff]

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Post by Another71.

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

[Gabe]

@fighting yeah I originally had mine scheduled at the end of the month but had extra time to study so I moved it up…I really want this to be over ha. Kind of late to reschedule yeah? Isn't there some kind of ridiculous fee?

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

[fightingforsanity]

@Gabe Ha I don't blame ya. Just one more and you'll be done forever.

I just bit the bullet and rescheduled. The fee was a little under $60, which I'm willing to cough up because if I don't pass Reg and my other remaining exam, I'll lose my FAR credit =/

FAR - ✓
AUD - ✓
REG - ✓
BEC - ✓

Don't give up!

[s2sylvir]

I've got a question… AMT related to the medical for AMT purposes

Question 1: Robert had current-year adjusted gross income of $100,000 and potential itemized deductions as follows:

Medical expenses (before percentage limitations)

$ 12,000

What are Robert's itemized deductions for alternative minimum tax?

Answer: Medical expenses (exceeding 10% of AGI) $ 2,000

Okay, fine.

Question 2: On their joint tax return, Sam and Joann, who are both over age 65, had adjusted gross income (AGI) of $150,000 and claimed the following itemized deductions:

Unreimbursed medical expenses of $15,000 (prior to AGI limitation)

Based on these deductions, what would be the amount of AMT add-back adjustment in computing alternative minimum taxable income?

Answer:

Medical expenses in excess of 7.5% AGI but not in excess of 10% of AGI (7.5% AGI is still used for taxpayers age 65 and over) 3,750

Say what? In question 1, the medical expenses in excess of the AGI limit is allowed as an AMT deduction, but in the second example the excess is an add-back (not allowed for AGI)?

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

Becker for all + FAR 10 Point Combo

[s2sylvir]

Ohhh spoke too soon. I just reread my notes. The AMT medical is limited to excess over 10% of AGI (basically old people don't get any benefit like they do on the regular Sch A of 7.5%)……

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

Becker for all + FAR 10 Point Combo

[Tre]

On July 1, Silk, Inc., sent Blue a telegram offering to sell Blue a building for $80,000. In the telegram, Silk stated that it would give Blue 30 days to accept the offer. On July 15, Blue sent Silk a telegram that included the following statement: “The price for your building seems too high. Would you consider taking $75,000?” This telegram was received by Silk on July 16. On July 19, Tint made an offer to Silk to purchase the building for $82,000. Upon learning of Tint’s offer, Blue, on July 27, sent Silk a signed letter agreeing to purchase the building for $80,000. This letter was received by Silk on July 29. However, Silk now refuses to sell Blue the building. If Blue commences an action against Silk for breach of contract, Blue will:

A.

win, because Blue effectively accepted Silk’s offer of July 1.

B.

win, because Silk was obligated to keep the offer open for the 30-day period.

Incorrect C.

lose, because Blue sent the July 15 telegram.

D.

lose, because Blue used an unauthorized means of communication.

The answer is A with the following explanation: “To create a contract, the offer must be accepted before a termination of the contract. A counteroffer is a rejection of the original offer followed by a new offer. Since Silk accepted the new offer, the counteroffer is a new contract.”

I thought the July 15 telegram acts as a rejection and counteroffer which would prevent Blue from accepting the original offer.

BEC - 84
REG - 88
FAR - 75
AUD - 71, Nov 2015

[The_AmYam]

yep you got it!

When I took REG last time, Medical for everyone was 7.5%, so the diff btw 7.5 and 10 was always an addback – now it's only required if youre old. 😛

alright… reviewing individual tax tonight. ugh. I hit a wall this afternoon and couldn't think straight. SO READY for Saturday morning to be here and over with! I sit at 8:30am ET.

I feel like exam prep has turned into a game of whack-a-mole… Just when you get one thing down, something else pops up and you're like, dammit now I have to go review that again.

This crap just needs to stay in my head till mid-day Saturday! haha

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

[The_AmYam]

Tre –

I think b/c he phrased it as a question and not “i'll give you $75k” – it is a mere inquiry; thus, the original offer was still able to be accepted.

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

[s2sylvir]

@The_AmYam Mine is Saturday at 9:30AM!!! I feel like we need to meet at a bar for some 12PM drinks…. And talk about how sucky the exam was XD

Speaking of after the exam, any plans? I'm going to get my hair done haha…. As a reward…

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

Becker for all + FAR 10 Point Combo

[s2sylvir]

@The_AmYam

Regarding the Blaw question… Wow, the explanation they gave made no sense… But yours made perfect sense. :O

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

Becker for all + FAR 10 Point Combo

[The_AmYam]

haha yes I am going to spend time with my kid and husband in the afternoon, then we are going out for his birthday that night. Sooo ready! It was actually on Sunday and I woke up so stressed about the exam I forgot until I'd been up a good 3 or 4 hours… ooooooopsies! Luckily he is also an accountant and understands. 🙂 He took REG right before our son was born – his last section.

If you are in Atlanta, we'll be out! 🙂

I actually want to start a website that helps study for the exam. I think what someone posted awhile back about how becker doesn't drill on the simpler things is a good point. I want to create a website that helps drill on the “easy” stuff. Like you have a list of all possible income components – check which ones are taxable. Or you have a list of items – check the box for the ones that are reported on the 1065. That kind of stuff – make it like an interactive game. I think I am better at teaching this stuff to other people than I am at doing it myself sometimes. haha

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

[The_AmYam]

You all should go watch this next time you hit the wall and need a good break/laugh

it isn't new, but it is still awesome!

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

[s2sylvir]

@The_AmYam

That's a good idea. I always rewrite everything to make things “simpler” for when I go back. Sometimes the way Becker has things set up just isn't intuitive… Let me know and I will for sure contribute :3

Yay for spending more family time :3! Wow, 2 CPAs in the family…. I had a boss who's husband was also an accountant. I was in her office one day when she said “oh, that's sexy, dear”… When she hung up she told me she wasn't trying to exhibit inappropriate behavior in front of me; her husband had told her he was working on an estate return…. I was like “oh.” XD

And no Atlanta for me D: I am in DC! Haha. Good luck to the both of us!!

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

Becker for all + FAR 10 Point Combo

[Tre]

Trending 85% with a little over 2 weeks to go… Just gotta hit Trust/Estates, BLaw, and some C-Corp rules a little harder here this week. Getting a little too overconfident here.

BEC - 84
REG - 88
FAR - 75
AUD - 71, Nov 2015

[The_AmYam]

yeah it's pretty sweet when he's talking about bond offerings and bouncing technical accounting crap off of me and it isn't even light outside yet. I'm just like… seriously man, wait till I've had at least 1 sip of coffee please. we both worked as auditors for Grant Thornton for awhile… when we get together w/ our friends from there, I feel bad for the non-accounting spouses. They're just like, please shut up with the geeky crap.

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

[Mika]

Wine purchased a computer using the proceeds of a loan from MJC Finance Company. Wine gave MJC a security interest in the computer. Wine executed a security agreement and financing statement, which was filed by MJC. Wine used the computer to monitor Wine’s personal investments. Later, Wine sold the computer to Jacobs, for Jacobs’s family use. Jacobs was unaware of MJC’s security interest. Wine now is in default under the MJC loan. May MJC repossess the computer from Jacobs?

A. No, because Jacobs was unaware of the MJC security interest

B. No, because Jacobs intended to use the computer for family or household purposes

C. Yes, because MJC’s security interest was perfected before Jacobs’s purchase

D. Yes, because Jacobs’s purchase of the computer made Jacobs personally liable to MJC

You answered B. The correct answer is C.

The filing of the financing statement is to give public notice of MJC’s security interest. Third parties are deemed to know of the security interest even if they do not actually have knowledge. MJC may repossess the computer. Jacobs’s intended use is of no consequence. Jacobs has no personal liability.

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Why not B? Since Wine purchase it for personal use. He qualifies as a consumer and then he resell it to another consumer. Shouldn't MJC has no right to take back the computer?? A buyer in ordinary course of business takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its existence.

“In most cases, a perfected security interest will prevail over the competing interests of all other parties. However, not even a perfected security interest will prevail over someone who purchases goods in the ordinary course of business (regardless of whether it is a consumer or nonconsumer purchaser). The purpose of this rule is to allow the buyer to purchase a merchant's inventory without fear that it could be repossessed by the party holding the secured interest in the inventory.”

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

[Author]

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