[jeff]

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

[Nutcracker2016]

@RE2PECT- Thank you so much. All the very best on your exams.

[thisonelife]

How do you know if the partnership profits are split by the proportion that they contributed or if they are split evenly when there is absent an agreement to the contrary? Becker gives conflicting answers based on which question it is, sometimes they split it by contribution, and sometimes they split it evenly.

[CPA788]

@re2pect – I am trying to pick myself up off the floor! I left Prometric feeling so defeated and I need to get over it. My experience sounds like a clone of yours – couldn't tell if MCQs got harder but I think I had medium all the way through. I usually have a good time on SIMS (like I always luck out and just FEEL like I nail them but still fail? ha), and had WEIRD ones today, like you said. I had to re-read and stare at what they were asking. I feel defeated because when I passed AUD, I walked out feeling like boom, that's done, expected least low 80s, then got a 77 . Point being I feel like I have to walk out like I killed it to barely pass. Ok rant over, living it up until March 8 and we'll see what we got! Good job on getting through it!

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[RE2PECT]

@CPA788- I never leave Prometric feeling like I passed lol. The only one I actually thought I did well on was my first AUD exam and I ended up with a 73. Thought I did worse on my retake and got an 81. After that I stopped trying to figure out how I did lol. You can drive yourself crazy thinking about some of the questions you missed or the sims that you couldn't figure out.

I'm trying not to let it get to me, but I put so much time and effort into this retake, I'm not sure what else I could do if I don't end up passing. I told myself I wouldn't look up anything, but the research question was bugging me and after trying to search for it when I got home, I don't think I answered it correctly. It sucks because I actually knew the answer and it seemed simple when I first saw it, but none of the keywords led me to it. I feel like they purposely make sure it won't come up in any searches because the same thing happened last time I took it. One of the other sims, I put a bunch of 0's on certain parts because I couldn't for the life of me figure out what was being asked. I know I nailed the first one and maybe got one part wrong because I couldn't figure out if I had to put it in as a positive or negative. There was another where I probably got 60-70% correct and the rest I think I at least got half of them correct. My mcq's weren't very wordy for the most part, but maybe it's because I was getting used to the crazy long ones that Gleim has. They had a bunch of weird ones asking things I never even heard of so hopefully those were pretest.

I'm just going to enjoy the time off until score release and look forward to spending it with my wife and son without the thought of studying hanging over my head. Let's hope we did enough to pass and have our lives back!

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

[bravesfannc]

@ re2pect It sounds like we had a very similar experience. I knew the answer to the research question but had a very difficult time finding it. Like you the key words wouldn't bring up anything. By the grace of God I had about 7 minutes left after I finished all of the other SIMS and I was able to go back and find a more correct IRC reference for my research question.

I do my best not to guess if my MCQ are moderate or difficult. My thinking is a difficult topic for one person may not be difficult for someone else. My strength is in personal and partnership taxes, so if there were lots of those I would not think they are difficult. If the test would hit me with tons of Business Law, I might would think those are more difficult.

I'm enjoying the time off. It is weird not studying in the mornings before breakfast and in the evenings as soon as I get home from work. I'm hoping that the 8th is good to both of us. My wife would very much like to have her husband back from the past two years of study time.

FAR - 84 - 11/14/15
AUD - 76 - 2/6/16
BEC - 73 - 7/13/16
REG - TBD

[HoosierCPA]

@re2pect @cpa788 I'm pulling for you 2! Based on what you posted it sounds like you both have a good shot. Like @re2pect says leaving prometric feeling beat up and defeated is normal–just go back a few pages on this thread and look at my experience. Enjoy your time off and I will be here (March 8th?) for the score release!

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

[RE2PECT]

@bravesfannc- I wish I had more partnership questions lol. I spent more time than I should have on a couple topics and barely got maybe 2 questions on them. There were a couple questions on topics I knew, but the answer choices weren't the numbers I was coming up with. I wasted time trying to figure out what I was missing before just giving up and making an educated guess. I'm still mad about the research, but there's nothing I can do at this point.

@dtatham10- I actually went back to look at your post last night lol. I remember you were frustrated after taking it, so hopefully I'm just overreacting. For some reason, people seem to be getting great scores this quarter. I wonder if it's because people who are rushing to pass REG and BEC this quarter aren't ready and it's helping the ones who know the material a little better. At least I didn't put all 0's on my sims this time lol.

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

[Jezzie]

I will be leaving shortly to go sit for round 2…This has been a stressful retake, Prometric cancelled my test two weeks ago at a location that was a few miles from my house, so I had to reschedule my test an hour away to get the same test date or else I would fall into the later test release date. I was definitely defeated on the first round and feel more prepared for this round. Hoping I don't get the impossible SIMS like the first time around.

Good luck everyone who is testing!!!

FAR 2/23/16 76
AUD 5/13/16 69, 7/5/16 87
REG Nov 2016
BEC Sept 6

[HoosierCPA]

@re2pect partnership questions were always a concept that seemed to click in my brain. It was the corp and s corp basis questions that always tripped me up. I have a theory that people fighting the clock on their credits dropping off NASBA is passing them so they don't have to hear them bit* next quarter haha. I am curious to see how they handle it–I am patiently waiting for them to extend peoples credits, they have to or else their inbox is going to be full of complaints.

It sounds like you did all you could to pass so at least you aren't leaving the test center with a “what if” attitude. I have read a few threads of how many mcq's and sims people attempt going into an exam and you are about double or triple the average so I commend you for have the focus to keep at it! lol

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

[RE2PECT]

@dtatham10- I've read people post on here that you have to contact your state board and ask for an extension if you're deadline will be effected by the extended score release. Supposedly they'll extend it, but not sure by how much. I'm trying not to think about that lol.

I'm the type that will always look for a “what if” scenario, but this time I'm not sure I could have done anything more. I basically studied for 5 months straight if you include my first exam. I even extended this one over a month just to make sure I was ready. Hopefully a NASBA spy is reading this and will show me some mercy lol.

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

[ruchita.jain88]

Question #: 998 Category: 5A1 Inclusions and Exclusions

The answer says:
The exclusion for U.S. Savings Bond Income Used for Higher Education (IRC Section 135) does not apply for this question because the bonds must be qualified U.S. Savings Bonds issued after 1989 to an individual who has reached age 24 before the date of issuance.

These are exempt if used for self, spouse as well as dependant. Mike's daughter is a dependant so entire $10000 should be exempt.
I am confused with the answer. please help.

[CPYay]

@ Ruchita

Do you have the rest of the question? I'm assuming it has to do with the age of the purchaser when the securities were purchased.

[ruchita.jain88]

Tap, a calendar-year S corporation, reported the following items of income and expense in the current year:

Revenue $44,000
Operating expenses 20,000
Long-term capital loss 6,000
Charitable contributions 1,000
Interest expense 4,000
What is the amount of Tap's ordinary income?

ANSWER:

Tap's ordinary income is $20,000, calculated as follows:
Revenue $44,000
Less: Operating expenses (20,000)
Less: Interest expense (4,000)
——–
Ordinary income $20,000
========

why is the interest income included ? Shouldnt itbe under separately stated item?

[jack yassa]

@Ruchita Jain
The interest expense unlike the interest income.
1-The Interest expenses is included as an ordinary expense item line 15.Check the partnership form 1065,https://www.irs.gov/pub/irs-pdf/f1065.pdf

2-While the Intrest income itself is a separately stated item.

[wakefern58]

Hey all – Could someone clarify the C Corp formation for me?

If the 80% test is met, the shareholder recognizes gain ONLY to the extent of any boot received.

If the 80% test is NOT met, the shareholder recognizes gain to the extent of: the Fair Market Value of property minus Adj. Basis, AND to the extent of any boot received.

Is this correct? Thanks all =}

[Author]

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