REG Study Group Q1 2015 - Page 78

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  • January 23, 2015 at 5:52 pm #652201
    Anonymous
    Inactive

    Question

    Company A has income of ($130,000), included in income is a dividend from Company B of $10,000. Company B has income of $130,000, included in income is a dividend of $30,000 from another company that it owns less than 20%. If Company A and B consolidates what would be the consolidated loss?

    A. 0

    B. ($40,000)

    C. ($10,000)

    D. ($31,000)

    January 23, 2015 at 6:04 pm #652202
    s2sylvir
    Member

    @bcarmi4384

    I would have thought the answer is <31,000> but since that's not an option…. IDK… Someone explain what I'm doing wrong?

    Company A:

    <130,000>

    <10,000> Remove the 10,000 of intercompany dividend income

    <140,000> Net loss for company A

    Company B:

    130,000

    <21,000> Less: DRD at 70%

    109,000 Net income for company B

    <140,000> + 109,000 = <31,000> loss

    Unless DRD was already taken into consideration (which I feel like the problem should have told you if that's the case), then the answer is <10,000>…

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

    Becker for all + FAR 10 Point Combo

    January 23, 2015 at 6:20 pm #652203
    Anonymous
    Inactive

    You are correct. It was a typo on my part. I changed the answers.

    January 23, 2015 at 6:36 pm #652204
    Svitlana85
    Member

    I am so frustrated with this part of the exam. I have been studying now for a little over a month and I feel like I know only 30-40% of the material. There is just so much to remember and all the exceptions…ah so frustrating.

    Luckily my exam is not until Feb 26th. Anyone has any helpful tips or study strategies? I use CPA Excel.

    Thanks guys and good luck to everyone!

    CPA Excel/Wiley/Ninja Notes/MCQs

    FAR Feb 2014 85
    AUD Aug 2014 88
    BEC Nov 2014 85
    REG Feb 2015 71 Retake April 16, 2015

    January 23, 2015 at 9:09 pm #652205
    Anonymous
    Inactive

    Lane, a single taxpayer, received $160,000 in salary, $15,000 in income from an S corporation in which Lane does not materially participate, and a $35,000 passive loss from a real estate rental activity in which Lane materially participated. Lane's modified adjusted gross income was $165,000. What amount of the real estate rental activity loss was deductible?

    A. 0

    B. 15000

    C. 25000

    D. 35000

    January 23, 2015 at 9:50 pm #652206
    BEACPA
    Participant

    Svitlana85,

    I feel your dread with this section. I've been studying for about 1 month now too and feel I like I haven't gone as far as I would have liked. My exam is the 28th of Feb. C corps, S corps and Partnerships are confusing as h#!! when you mix them all together. I'm hoping BLAW isn't as confusing. I'm using Becker.

    One thing that has helped me is the Reg Audio from Another 71. You might still be able to get a 15% discount if you enter “HIYA” in the promo code. I put it on my iPhone and listen to it when I am driving or too tired to read or do MCQs. I've only had it for a week and I'm finding that things are starting to click or I'm at least memorizing the stuff.

    Good luck!

    FAR - 2/28/14 PASS Praise be to God!
    AUD - 7/5/14 PASS Praise be to God!
    BEC - 11/29/14PASS Praise be to God!
    REG - 2/28/14 PASS Praise be to God!

    January 23, 2015 at 9:51 pm #652207
    s2sylvir
    Member

    A, completely phased out at 150k AGI

    Yes, I am still keeping fresh with REG… I don't think I passed haha…

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

    Becker for all + FAR 10 Point Combo

    January 23, 2015 at 9:56 pm #652208
    BEACPA
    Participant

    Lane, a single taxpayer, received $160,000 in salary, $15,000 in income from an S corporation in which Lane does not materially participate, and a $35,000 passive loss from a real estate rental activity in which Lane materially participated. Lane's modified adjusted gross income was $165,000. What amount of the real estate rental activity loss was deductible?

    A. 0

    B. 15000

    C. 25000

    D. 35000

    The answer is A. -0- because as s2sylvir stated, the Mom & Pop exception is completely phased out at 150K.

    FAR - 2/28/14 PASS Praise be to God!
    AUD - 7/5/14 PASS Praise be to God!
    BEC - 11/29/14PASS Praise be to God!
    REG - 2/28/14 PASS Praise be to God!

    January 23, 2015 at 10:02 pm #652209
    BEACPA
    Participant

    s2sylvir,

    I completely forgot about the 150K phaseout. This is stressful!

    FAR - 2/28/14 PASS Praise be to God!
    AUD - 7/5/14 PASS Praise be to God!
    BEC - 11/29/14PASS Praise be to God!
    REG - 2/28/14 PASS Praise be to God!

    January 23, 2015 at 10:13 pm #652210
    s2sylvir
    Member

    @BEACPA

    Don't stress it and don't overstudy! It's because of that and trying to cram too much I actually forgot a lot of things during the exam. It's like grabbing sand; hold it too tight and it'll all just slip right out of your hands

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

    Becker for all + FAR 10 Point Combo

    January 23, 2015 at 11:58 pm #652211
    rachel525
    Member

    Baker, an individual, owned 100% of Alpha, an S corporation. At the beginning of the year, Baker’s basis in Alpha Corp. was $25,000. Alpha realized ordinary income during the year in the amount of $1,000 and a long-term capital loss in the amount of $3,000 for this year. Alpha distributed $30,000 in cash to Baker during the year. What amount of the $30,000 cash distribution is taxable to Baker?

    a. $0

    b. $ 4,000

    c. $ 7,000

    d. $30,000

    Is the answer B or C? Do you incorporate the LTCL into the basis or no? Becker says it is C but Wiley says it is B :S

    January 24, 2015 at 12:36 am #652212
    s2sylvir
    Member

    @rachel525

    My understanding is that it's C. Basis is decreased by losses — I do not recall ever learning that we needed to differentiate between losses. After all, basis and taxable income has never been one and the same.

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

    Becker for all + FAR 10 Point Combo

    January 24, 2015 at 12:42 am #652213
    sweetmoon
    Member

    How important are Securities Act 1933 ,1934 and other related laws for the exam. My Gleim material is really intense and it is just too much to remember.

    FAR : 71, 83
    AUD : 73,88
    BEC : 87
    REG : sweet 82 and DONE !!

    January 24, 2015 at 12:56 am #652214
    BEACPA
    Participant

    s2sylvir,

    Thank you for your words of wisdom. I'm trying not to stress out.

    FAR - 2/28/14 PASS Praise be to God!
    AUD - 7/5/14 PASS Praise be to God!
    BEC - 11/29/14PASS Praise be to God!
    REG - 2/28/14 PASS Praise be to God!

    January 24, 2015 at 1:04 am #652215
    rachel525
    Member

    @sylvir, thank you! That's what I was thinking too. I hate how different resources produce different answers!

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