[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

[nib]

@ future . pls check my answer .

D, E, F, and G formed a general partnership. Their written partnership agreement provides that the profits will be divided so that D will receive 40%; E, 30%; F, 20%; and G, 10%. There is no provision for allocating losses. At the end of its first year, the partnership has losses of $200,000. Before allocating losses, the partners’ capital account balances are D, $120,000; E, $100,000; F, $75,000; and G, $11,000. G refuses to make any further contributions to the partnership. Ignore the effects of federal partnership tax law. What is G’s share of the partnership losses?

answer= 20,000

1)when there is no provision for allocating losses. losses allocated at ratio of profit allocation .

[Anonymous]

So I took Reg today, and it's my last exam. I'm so freaked out because it was so crazy difficult and I did not find other sections so challenging. The problem wasn't that I didn't remember some of the material, it was that after doing ninja and Becker, the questions were simply things I had never seen before.

[nib]

@ FUTURE

A limited liability partnership (LLP)

A. Starts as a corporation.:
wrong answer because partnership has passthrough advantage which is is not there for corporation .

Correct Ans= B. Is typically adopted by providers of professional services.

C. Is ordinarily treated as a legal entity to the same extent as a corporation.answer same as given in A .

D. Offers a liability shield only for professional malpractice.
Wrong answer : LLP protects a partner from personal liability for the debts and obligations arising out of the negligence or malpractice of other partners or employees of the partnership after registering as an LLP.
There are many LLPs that have a large number of partners, such as accounting or legal firms. Within these large partnerships, it is impossible for each partner to know what other partners are doing; therefore, partners are generally insulated from responsibility for negligence of other partners,

[nib]

@ future

Eller, Fort, and Owens do business as Venture Associates, a general partnership. Trent Corp. brought a breach of contract suit against Venture and Eller individually. Trent won the suit and filed a judgment against both Venture and Eller. Venture then entered bankruptcy. Under the RUPA, Trent will generally be able to collect the judgment in full from
A. Partnership assets but not partner personal assets.
B. The personal assets of Eller, Fort, and Owens.
C. Eller’s personal assets only after partnership assets are exhausted.
D. Eller’s personal assets.

Choice “c” is correct. When a judgment is obtained against both a partnership and an individual general partner, the plaintiff must proceed against the partnership assets first and then the assets of any individual general partner. The partnership assets must be exhausted before any general partner's individual assets can be attached.

this case is of a breach of contract, not a creditor. When one is suing the partnership for a breach of contract, the partners must be individually listed. If the partners are not individually listed, then one can only get proceeds from the partnership assets. If the partners are listed by their names, only then one can go after the partner's personal assets. In this case, only one partner was listed, so only he is liable.

[nib]

Leslie, Kelly, and Blair wanted to form a business. Which of the following business entities does not require the filing of organization documents with the state?

A. Limited partnership.
B. Joint venture.
C. Limited liability company.
D. Subchapter S corporation.

Whenever there is limited liability involved , one need filing of certificate or article of organisation
.eg.
A. Limited partnership
C. Limited liability company.
D. Subchapter S corporation.

Joint venture is same like general partnership where no limited liability , so no filing required .

[nib]

@future

very good question . going through material .its like revision .

[nib]

@ future ,

I guess there is some technical problem with forum site . because i can see many of my responses when i login in my id . without login , those responses don't show up in the forum . R u guys experience the same .
I am worried about if other forum users can see my responses or not .?

I have already sent many replies about business structure queries .Please check if it shows in the forum .

[CPA2B_NJ]

@future ninja

#2 – answer is eithe B or C. It's not D because the limited liability aspect of it is not just for malpractice. Think of all the personal service types that there are out there (engineer, actuary, accounting, etc).
#3 – answer is D probably? I thought it would be C too. Maybe it's D because partnership income flows through to Ellen and she's “at risk”.
#4 – answer is B, all the others have to be formailly filed with the State
#5 – answer is maybe B? – probably not C because fiduciary duty goes beyond a simple degree of care
#6 – answer is C
#7 – answer is B

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[CPA2B_NJ]

@Min – keep in mind that partnership filing date is now in line with the individual tax filing date, because schedule K1 goes into Schedule E which is part of the 1040. Keep that link in mind. C Corp is big strong companies that have so many people that they can afford to have filing done a month sooner.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[CPA2B_NJ]

@CPABrooklyn – if you can give us any advice because my exam is coming up next Saturday! Good luck!

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[CPA2B_NJ]

@future ninja

#1 looks complicated, do you have the answer?

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[nextcpa16]

CPABrooklyn ..the same happen to me. When I meet with the other people around me and noticed that they know all the things of memory my moral going down!

Maybe in their case it's because the took the test more than 1 time. I dont know, just wanted to have a photograph and detailed memory on theses test.

Good luck!!!! Best wishes! my test is next friday. How was you experience?

FAR - Passed on July 15
AUD - Passed on Oct 15
REG - Test on Feb/26/16
BEC - 5/27/16

Working full time and using Becker self study

[Future Ninja]

nobody care to answer my posted questions? is it bec you guys knew it and i dont? 🙁 sad face.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Tncincy]

Has anyone attempted sims before ninja mcq's?

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

[Future Ninja]

Bobby owns 50% of Jingles, Inc., an S corporation filing tax returns on a calendar year. For tax year 2015, the corporation has an operating loss of $15,000 and separately stated tax-exempt income of $10,000. Bobby individually loans the corporation $4,000. His basis on January 1, 2015, is $2,000. What is his basis in the stock at year end 2015?
tion pr
A. $1,000
B. $3,500
C. $(9,000)
D. $0

ANSWER: D. solution provided did not consider the loan.

versus this problem:

Bob and Sally, unmarried taxpayers, each owned 50% of Lostalot, Inc., an S corporation. The corporation had a $50,000 operating loss for the tax year ending December 31, 2015. As of December 31, 2014, Bob’s basis in his stock was $15,000 and Sally’s was $5,000. During the 2015 tax year, Sally mortgaged her home for $25,000 and loaned the money to the corporation. Although not personally liable, Bob told her not to worry and that if anything happened, he would help pay the mortgage debt. Calculate the amount of allowable loss deduction each shareholder would be able to recognize on their individual 2015 tax returns.

A. Bob: $25,000, and Sally: $25,000.
B. Bob: $15,000, and Sally: $5,000.
C. Bob: $15,000, and Sally: $30,000.
D. Bob: $15,000, and Sally: $25,000.

ANSWER: D – solution provided considered the loan to get the Basis.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Author]

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