[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for REG.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[Anonymous]

Thanks, Bin. When are you testing for REG?

[nib]

@ amor D, @Pandarama ,@ CantStopWontStop, @ Future Ninja,

I guess mortgage transactions are related to real property and usually amount involved is very big. so laws are strict about liability of borrower . Generally, who is register with mortgage organisation is only liable to that big amount .there may be some exception cases .

Whereas in debtor creditor transactions, where amount is generally smaller as compared to mortgage transaction. So more than one parties would pay to creditor because of creditor beneficiary or delegation of duties .

[nib]

@ amor D ,

Received gifted property and then sale——-
1) Use donor’s basis
2) Loss on sale use lesser of basis or FMV
3) GAIN on sale use donor’s basis
4) Sold at prices in between donor’s basis and FMV , no G/L

Inherited property
1) Use FMV at the date death or alternate valuation date i.e. 6 mnths later .
2) If sold before 6 months then consider FMV on the date of the sale of property
3) when the alternate valuation date is elected, the basis is FMV at that alternate valuation date as long as the valuation < value at death.
4) Consider as LTCG

[Anonymous]

IS THE TEMPORARY INVESTMENT OF $20,000 (BELOW) CLASSIFIED AS PORTFOLIO INCOME?

SAMPLE MCQ:
Don Wolf became a general partner in Gata Associates on January 1, Year 1, with a 5% interest in Gata’s profits, losses, and capital. Gata is a distributor of auto parts. Wolf does not materially participate in the partnership business. For Year 1, Gata had an operating loss of $100,000. In addition, Gata earned interest of $20,000 on a temporary investment. Gata has kept the principal temporarily invested while awaiting delivery of equipment that is presently on order. The principal will be used to pay for this equip­ment. Wolf’s passive loss for Year 1 is:

A.
$0.

B.
$4,000.

C.
$5,000.

D.
$6,000.
The correct answer is C.
Don Wolf's passive loss is $5,000, or 5% of Gata Associates' $100,000 loss.
Interest earned on the temporary investment is not considered in determining Gata Associates' passive loss.

[melody_pinaycpa]

Hi everyone, kindly have a look at below MCQ. I came up with 36K as an answer but not part of the choices. 36k is computed below:

40K plus 6K (share of Lind in the mortgage assumed by Ace 60%*10K) less mortgage assumed by Ace of 10K.

Correct answer is 30K (40K less 10K mortgage assumed)

Lind and Post organized Ace Corp., which issued voting common stock with a fair market value of $120,000. They each transferred property in exchange for stock as follows:

Adjusted Fair Market Percentage of
Property Basis Value Ace Stock Acquired
——– ——– ———– ——————
Lind Building $40,000 $82,000 60%
Post Land 5,000 48,000 40%

The building was subject to a $10,000 mortgage that was assumed by Ace.

What was Lind’s basis in Ace stock?

A.
$82,000

B.
$40,000

C.
$30,000

D.
$0

FAR (Apr 2015) - 88
AUD (July 2015) - 86
BEC (Oct 2015) - 82
REG - 73, 70, retake Sept 2016

[ahugemistake]

Hi guys, hope everyone has been staying on target with their studies this month. I just finished reviewing the material in CPAexcel and have approximately 2 weeks until my exam on Jan 31. I'm very nervous. I need to review material to know how much I really retained.

Initially I wanted to purchase Ninja to supplement but I feel I don't have enough time. The people who use CPAexcel, do you feel the supplemental questions provided by the course are enough?

Also my FAR expires on Feb 6th. If I take my exam on Feb 6th would that be too late?

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[Tncincy]

@ahugemistake: I think if you get the ninja mcq's it would be a good test to see where you are. I have cpaexcel and just couldn't do it, just too much, too many details, but I think the ninja mcq's would be a good test to measure. Others have to posted the what the percentage needs to be to indicate doing well on the test. Something like 70-80%.

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

[rosecpa]

melodylocquiao_pinoycpa
I think that you are confusing the calculations of basis for different entities. In a CORPORATION nobody is liable after the initial investment so it effects a COMPLETE release of liabilities, not proportional.

Therefore, the basis is the adjusted basis, less the cancelation of debt.

[Anonymous]

Smith made a gift of property to Thompson. Smith's basis in the property was $1,200. The fair market value at the time of the of gift was $1,400. Thompson sold the property for $2,500. What was the amount of Thompson's gain on the disposition?

a. $0
b. $1,100
c. $1,300
d. $2,500

[ahugemistake]

@cincy just bought ninja. gonna start drilling at it right away!

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[rosecpa]

Bondvillian, is the answer b- 1100?

[Anonymous]

[valorx28]

Isn't it C $1300 because for gifts, the basis is carryover basis unless the NBV > FMV which in this example…it is not. Gifts are non taxable so the general rule is that the basis will equal to NBV. Whereas taxable transactions, will have a basis equal to FMV.

[Anonymous]

Please help me with my big-time conjunction “OR” “AND” mix-up.

SEC Act of 1934 Compliance is required if securities are listed on a national exchange OR there are at least 500 shareholders in any class of securities and the issuer has at least $10M in assets.

Does it mean?….
NSE/500 SHs
*AND*
$10M-Assets >

Please tell me if compliance is required under different situations below:

A.
NSE Listed
400 SHs
$20M-Assets

B.
NSE – Not Listed
600 SHs
$20M-Assets

C.
NSE – Listed
500 SHs
$5M-Assets

D.
NSE- Not Listed
400 SHs
$20M-Assets

[Anonymous]

@Amor_D Compliance is required under 2 requirements:

1) if listed or traded on a national exchange

OR

2) (like you wrote) $10M in assets AND 500 SH.
Special note: under the JOBS Act, Title 5, it must be 500 nonaccredited SHs OR 2000 total SHs

A) Even though the 400 SH falls below the minimum # of 500, it is nationally listed so it must comply

B) It is not nationally listed however it meets the 500 SH and $10M asset limit, so it must comply

C) Nationally listed so it must comply despite not meeting the $10M asset limit

D) It is not nationally listed NOR does it the 500 SH limit so it does not have to comply with the 1934 Act

[Author]

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