[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

[BEACPA]

anjanja

Glad it makes more sense. I feel your pain. Keep taking sledgehammer blows in one constant direction and you will slay this beast.

Cheers,

BEACPA

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!

[funtimesNOT]

That is crazy you answered my question before I I asked it!

AUDIT - 79
FAR - 64, 77
BEC - 69, 71,79 - DONE!
REG - 60, 75

Nothing in the 80s ; however, I worked full time the whole time! (like 10 hour days) so it can be done 🙂

[Anonymous]

Yes @Lauren.

I was just starting to slice every piece of 2014 Form-1040 line per line and I couldn't see K-1 Income/Loss item.

My old notes say K-1 is one of the Gross Income items. Though I saw Schedule E for Rent, Partnerships, S Corp., Trusts, etc.

Thanks anyway!

[knicks92]

can someone explain the differences b/w these two problems:

Dole, the sole owner of Enson Corp., transferred a building to Enson. The building had an adjusted tax basis of $35,000 and a fair market value of $100,000. In exchange for the building, Dole received $40,000 cash and Enson common stock with a fair market value of $60,000. What amount of gain did Dole recognize?

a.

$5,000

b.

$65,000

c.

$40,000

d.

$0

and

The sole shareholder of an S corporation contributed equipment with a fair market value of $20,000 and a basis of $6,000 subject to $12,000 liability. What amount is the gain, if any, that the shareholder must recognize?

a.

$6,000

b.

$0

c.

$8,000

d.

$12,000

Why does the first question, the gain is just the boot received but for the second question, you subtract the liability given up and basis to get recognized gain?

Tough times don't last. Tough people do.

B: 88
A: 77
R: 89
F:

[Mika]

Irving R. Spayer has not filed federal income tax returns or paid any federal income taxes for the last several decades because he feels that the federal income tax is unconstitutional. Which of the following penalties might apply to him?

1. The failure-to-file penalty in the amount of 10% of the tax due for each year (or fraction thereof) the return is not filed.

2. The failure-to-pay penalty in the amount of one-half of one percent (0.5%) of the tax due for each month (or fraction thereof), up to maximum of 25% of the unpaid tax

3. The total of the failure-to-file penalty and the failure-to-pay penalty

4. The failure to file penalty of $195 for each month or part thereof (up to a maximum of twelve months) the return is late

_________________________

Ans. 2.

But why not 3.?

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

[Mika]

@knicks92, the first one is a liked kind exchange question

FMV of the new property: 60,000

add

*Boot (in the case, is just cash since there is no debt relief or unlike property): 40,000

minus

the old property basis 35,000

equal

Realized gain $75,000

We compare the boot (40,000) with the realized gain $75,000, we take the less, so the answer is 40,000 which is your recognized gain (Ans C)

*Note that the boot, we take the lesser of boot or realized gain of the old property which is 75,000 (100,0000 – 35,000)

The new basis of the property will be

DR Cash 40,000

CR Old property 35,000

CR recognized gain 40,000

So the new basis of the property will be 35,000

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

[RZHANG13]

Could someone tell me why ” state tax refunds from prior year received in current year have no effect on E&P ” ?

I'm totally lost in current E&P calculation. I just can't understand why some adjustments are negative and others are positive. Is there a way to understand these things?THANKS!

[Tncincy]

ok help….I have purchased the reg mcq's, I have received a purchase receipt and a paypal receipt. I do not have an email or login permission. what I am I doing wrong. I have emailed Jeff, I guess he is busy. Can one of the moderators help with this? Do I need to forward my receipt or something?

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

[knicks92]

A lot of the wiley questions i am going through are focused on material that was not covered in Becker. Did anyone experience the same thing? If so, how did you react

Tough times don't last. Tough people do.

B: 88
A: 77
R: 89
F:

[Tncincy]

@knicks, I would study the solution explanations given in Wiley since it might not be covered in Becker. At least you will have an idea of the question in case you see it again.

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

[NJPRU]

Finally finishing up R7… ugh. I'm so aggravated with Becker at this point. I really don't understand the point of creating “optional” questions when half of them appear to be REALLY important. Yes, some of them are one-offs, but the preferences and putting aside payments questions are important and should have grouped with the bankruptcy chapter. What if people didn't do them because they were optional? smh

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

IM GOING TO BE A CPA!!!!!

[knicks92]

Schedule C revenues of $50,000, COGS of $10,000, Office Supplies of $1,000, Business Meals of $4,000, FICA taxes of $2,600, and Salary to the Sole Proprietor of $25,000.

So for this Reg question, is all of the $2600 excluded from tax or just half of it since half is deducted on Form 1040

Tough times don't last. Tough people do.

B: 88
A: 77
R: 89
F:

[Mika]

@knicks

I think all 2600 is exlduded in Sch C and half of it is deducted in line above AGI

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

[Anonymous]

@NJPRU, I think it's only for the purpose of certain requirements of a program in bachelor/master's degree or CPE or Becker's promise. If you will notice, once we complete and finish the lectures and SIMs at 100% and answer HWs (without the optional questions) until the grade of 90% correct answers, each chapter (like R1, R2….) shows checked and completed.

[Mika]

Quick question

In case of a partnership non-liquated distribution

Cash 5,000

Property basis 10,000 (liability 20,000)

Tax basis of the partner is 30,000

Should I use the 10,000 OR the 20,000

Sorry, it may be a silly question….thanks

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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