[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

[mp]

Is this answer correct?

Question (Gliem SIMS – Study Unit 6):

Patent worth $360,000 received by GL Corp in 2001 for new genetically modified seeds

Answer:

$18,000. Intangible assets may be amortized over their useful life during the straight-line method. The useful life of a patent is the 20 years for which it is afforded legal protection. The calculation is $360,000 ÷ 20 years = $18,000.

[Future Ninja]

Johnson, an accrual-method landlord, receives the following receipts during the current year associated with his rental of apartments:

Lessees’ refundable deposits……..$ 2,000

Value for modifying a lease………50

Rent……..10,000

Lessee improvements made in lieu of rent……..1,500

Prepaid rent…………….500

Bonus for granting a lease…………….200

What amount should Johnson report as taxable income from his rental investment?

A. $14,250
B. $12,250
C. $12,050
D. $12,000

question: isn't it the value for modifying the lease is a cost related to rent/lease? why it is added?

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

[Future Ninja]

Guys? anyone? my posted question please help.

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

[Anonymous]

Hi Future! When are you testing for REG? What study materials are you using? Are your questions not supported by the reviewer's explanation? It would be easier for other candidates to help you with your questions/confusions if you provide all the explanation.

Good luck.

[Future Ninja]

hi Amor D. I'm testing on 2/29/2015 leap year! I'm using ninja.

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

[Future Ninja]

@amor D – how was your REG result? did you post your experience? any tips?

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

[Anonymous]

I had REG NINJA too and MCCs come with great explanation. Can you repost your question with answer/explanation and let's see if we can discuss it together. I am waiting for my REG's score this week. Whew! I hope I passed, though the SIMs I got were very vague. Otherwise, I'd be taking REG again next window.

I am studying BEC and man, it's so wordy.

[Future Ninja]

@Amor D – don't forget COSO/framework and IT stuff. They're small topics but a lot of them are vey useful.

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

[Future Ninja]

@Amor D – I think you did well. What part of the sims threw you off?

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

[Anonymous]

Yes, I like COSO very much. Peter Olinto's COSO lecture is very engaging and lively. I find IT supremely challenging and difficult.

I ran out of time for my SIMs, only 55 minutes left after three testlets. My first testlet was manageable. My next two testlets got harder and took me longer to finish till I got to my SIMs.

The portion where I had to provide the AT-RISK calculations (no dropdowns) that's when I got confused. I didn't even understand the call of the question.

[Future Ninja]

it means you did well @Amor D bec your testlets got harder. I'll be cheering you on 23rd. treat everyone a bottle of beer. ^_^

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

[Future Ninja]

it means you did well @Amor D bec your testlets got harder. I'll be cheering you on 23rd. treat everyone a bottle of beer. ^_^ it might be pretest.

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

[Future Ninja]

Flowers, a married taxpayer, purchased an annuity for $64,400 that will pay $700 per month over the life of Flowers and Flowers’s spouse. At the time of purchase, the couple’s joint life expectancy was 23 years. Flowers received payment beginning April 1, Year 1, amounting to $6,300 in the first year of the annuity contract. How much is includible in Flowers’s gross income in the first year?

A. $0
B. $2,100
C. $4,200
D. $6,300

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

[mp]

Can someone please help me to verify if this answer is correct?

Question (Gliem SIMS – Study Unit 6):

Patent worth $360,000 received by GL Corp in 2001 for new genetically modified seeds

Answer:

$18,000. Intangible assets may be amortized over their useful life during the straight-line method. The useful life of a patent is the 20 years for which it is afforded legal protection. The calculation is $360,000 ÷ 20 years = $18,000.

– See more at: https://www.another71.com/cpa-exam-forum/topic/reg-study-group-q1-2016/page/25#sthash.nFbEMfKj.dpuf

[Anonymous]

@Mp, I guess the problem selects the patent's legal life of 20 years, which is the maximum period, not the useful life of 15 years under Section/Code 197 of IRC.

[Author]

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