[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.

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[Gabe]

hmm anyone else know?

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

[The_AmYam]

see pages R3-44 R3-45

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

[Gabe]

Thanks am. According to my NINJA notes:

Pship distribution

Decrease basis in order:

1. cash received

2. AB of unreal receiv/inventpry

3. AB of other prop

Only $ distributions will trigger a gain in a pship distribution

A loss can ONLY occur in liquidating distribution

Corp distribution:

Prop= FMV

Order:

1) Distribution= dividend to extent of accum E&P

2) excess reduces basis

3) any left over? cap gain

Distribution amt= FMV of prop + $ – liab assumed

IF FMV < Basis- NO LOSS

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

[omalloy]

Great! I had it right after all 🙂 Thank you for the recap.

FAR 65, 70, 78
REG 64, 76
BEC 70, 80
AUD 81

Ethics 96

Péter un plomb

[NJPRU]

Thank goodness I have off Monday to review Corps, S Corps, and Partnerships. I'm forgetting everything 🙁

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

IM GOING TO BE A CPA!!!!!

[Gabe]

@NJ it's a lot to remember. I am taking this weekend to go full on crazy on everything, do some light studying Monday then I take my exam Tuesday 🙂

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

[NJPRU]

@Gabe – everything is at a, DUH moment for me right now instead of an “IDK” which is a good sign. Monday will be tough. I'm sure you'll do great!! You seem to have everything tied up. 🙂

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

IM GOING TO BE A CPA!!!!!

[Gabe]

Definitely lots of DUH moments…going to wrap it up this weekend and ATTACK on Tuesday 🙂

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

[The_AmYam]

Gabe – yes, for the most part.

Corp Distribution:

Say a company has 40,000 Accum E + P, (20,000) Current E+P, and makes 2 distributions during the year of 15,000 (let's say at mid year-end of year for simplicity):

AEP total less 1/2 CEP –

40,000 – 10,000 = 30,000 AEP for your first distribution

30,000 – 15,000 = 15,000 for the second half of the year

15,000 – 10,000 = 5k remaining to distribute

so for the 2nd half of the year: 5k dividend, 10k return of capital, 0 E+P left over

it's tricky if you have accumulated and negative current

Current E+P: dividend

Accumulated E+P: Dividend

No E+P: reduce basis

No basis: capital gain

^^^^ important ****

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

[The_AmYam]

try this one:

Emerald Corporation's E&P before the distribution: $8,000

FMV of distributed property : 6,000

Basis of distributed property: 2,000

Liability on property assumed by distribute: 3,500

calculate:

Recognized gain (loss) to Emerald Corporation (A)

Shareholder's : (B)Taxable dividend

Basis for property received

Emerald Corporation's EandP after distribution (C)

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

[The_AmYam]

Answer:

Recognized gain (loss) to Emerald Corporation (A) – $4,000

Shareholder's : (B)Taxable dividend – $2,500

Basis for property received – $6,000

Emerald Corporation's EandP after distribution (C) – $9,500

(A) $6,000 − $2,000 = $4,000 gain.

(B) $6,000 FMV reduced by $3,500 liability assumed = $2,500 dividend.

Basis for property received is its FMV of $6,000.

(C) $8,000 + $4,000 gain − $6,000 FMV + $3,500 liability assumed = $9,500

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

[Gabe]

@am

AEP total less 1/2 CEP –

40,000 – 10,000 = 30,000 AEP for your first distribution

^^ why only half of CEP?

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

[Gabe]

@am holy cow…anyway to keep all this straight?

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

[The_AmYam]

the only way I can is to do it and memorize it….

only half because if they distributed CEP twice in the year, you assume half of the deficit was earned in the first half of the year and half in the 2nd half of the year.

to be honest – this is why I paid for wiley on top of Becker. :/

I pulled the example above from a sim, I will put the other sim in here that deals w/ the negative CEP so you can see what I'm talking about a little better.

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

[The_AmYam]

Assume that you are working on issues regarding corporate distributions with your client, Emerald Corporation.

Complete the cells in the schedule below for the following nonliquidating corporate distributions. Indicate for each independent case the amount of the July 1 nonliquidating distribution that should be treated as a dividend or as a return of stock basis by the distributee shareholder. Additionally, indicate the amount of the distributing corporation's accumulated earnings and profits as of the beginning of 2015. For each independent case, assume the corporation uses the calendar year for tax purposes, that all cash distributions are made on July 1, 2014, and that the distributee shareholder's stock basis before the distribution is $10,000. Also assume for cases (d) and (e) that an accurate determination of when the 2014 deficit occurred cannot be made. If the value of a cell is zero, you must enter zero (0) to receive credit for your answer.

Accum. E&P beg. of 2014: $40,000

Current E&P entire 2014 : ($55,000)

Cash dist. on July 1 : $15,000

*solve for*

Amount of dividend:

Return of stock basis:

Accum. E&P beg. of 2015:

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

[Author]

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