[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for REG. 🙂

[RE2PECT]

@aatoural- It was supposed to be yesterday, but I pushed it back to 2/27. I'd rather give myself the extra time and can always move it up if I feel I'm ready.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[aatoural]

C?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[HoosierCPA]

I actually chose C as well…

Choice “B” is correct. This is an example of an involuntary conversion. In an involuntary conversion,
the basis of the new property (the new warehouse) is equal to the cost of the new property reduced by
the gain on the old property that was not recognized.

The computation is as follows:
Insurance proceeds 195,000
Adjusted basis of old warehouse (75,000)
Realized gain 120,000
Gain recognized (excess of insurance proceeds of $195,000 over amount reinvested of
$167,000)
28,000
Gain not recognized 92,000
Cost of new warehouse 167,000
Less gain not recognized (from above) (92,000)
Basis of new warehouse 75,000

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[aatoural]

That sounds like GLEIM to me. LOL

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[HoosierCPA]

@aa I stay true to my word and will never post a gleim! 100% Becker lol

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[HoosierCPA]

@aa I guess viewing the lecture is the same as the ebook. It lets you scroll through pages from there so it works the same way!

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[aatoural]

ROFL

Awesome Dtat. Thanks!

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[JMG]

@dtatham10 thanks for posting that involuntary conversion question, somehow that slipped through the cracks for me!

[aatoural]

@dtatham10 – I was working on Becker new version SIM 1 chapter 4. The research question does not have a tab for the AL. Wierd.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[aatoural]

Nevermind I found it. Is as part of the icons on the top left next to submit.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[CPYay]

Just started studying REG Sunday night. This is the first time I've taken a peek into this thread. Dtat's MCQ just made me throw up in my mouth. Excited for my Mar 7 test! -_-

[HoosierCPA]

@cpyay haha don't stress that mcq…doesn't matter how long you study you will still stumble across a question like that from time to time.

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[HoosierCPA]

So just want to make sure I have this right. Calculating the basis of the Corporation vs the Shareholder of that same corp

Corporation Calculation:
+ Basis of Shareholder contributions
+ Recognized Gain
——-
Ending Basis

Shareholder Basis >=80% Control:
+ Contribution AT the shareholders basis
– Liabilities assumed by the corp
– Cash Received
+ Recognized Gain
——
Ending Basis

Shareholder Basis <80% Control:
+ Contribution AT shareholders FMV
– Liabilities assumed by the corp
– Cash Received
+ Recognized Gain
—–
Ending Basis

The big difference between Corp vs the Shareholders basis calc appears to be the Corp not factoring in the liabilities it assumes. Also, as I was typing this up I had another question. If you are a less then 80% control shareholder and contribution basis 100k property with a FMV of 150k and receive 20k in cash is your recognized gain 20k or 50k? I understand less then 80% control assumes the FMV and there is usually a gain based on the Basis – FMV…but I'm not sure I've seen a question where there is less then 80% control and boot is received.

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[RE2PECT]

@dtatham10- This is from a chart in Roger's book:

Shareholder basis for >80% is:

+ basis of property transferred
+ recognized gain
+ cash paid
+ liabilities assumed
+ transaction costs and fees
– cash received
– FMV of property received
– liabilities transferred to the corp.

I've never come across anything about a less than 80% shareholder receiving cash so I wouldn't know how to answer it. Hopefully you're just overthinking and we never see that lol.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[cpaMD86]

I just started doing Ninja MCQs like two days ago, and I am continuously getting my arse KICKED! :\ As Charles Barkley would say…”it's turrible”

FAR: 9/3

[Author]

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