[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for REG.

“Death and Taxes” – Individual Tax for the CPA Exam

Posted by Another71 on Monday, November 24, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

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

[Anonymous]

I don't get this, the question is asking about voidable, the answer is for void

Which of the following types of conduct renders a contract voidable?

A.

Mutual mistake as to facts forming the basis of the contract

B.

Unbreached contract

C.

Duress through physical compulsion

Incorrect D.

Duress through threats of a civil suit

You answered D. The correct answer is C.

Duress is a wrongful act that compels contractual agreement through fear. Although threats of a civil suit are not considered duress legally, physically threatening a person to do another's bidding is definitely duress and any such contract is illegal and can be voided.

[Anonymous]

haha

[jstay]

/// funniest thing ever

@anjanja i thought i saw that mistake and went with D and was confused when it said C was correct. pretty sure @dpd516 is right though, do you agree?

and im guessing A is a void contract? and b is just a distractor?

[Anonymous]

I think A also makes contract voidable, I guess I just liked D better for some reason

The question probably asks for void contract, not voidable, it would make more sense

[willpassby2014]

I had the same issue. Are they asking Voidable or Void?

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

eh who knows

[canaanko]

@willpassby2014

Tax is still 60-68%. Close enough to 80, but you're right to focus more on tax because the sims will be testing you mostly on that.

[Anonymous]

It's noon about to get started! Going to be a long asssssss day but Thursday is creeping up fast!

[Anonymous]

Good luck cpa8488. You've put in your time and you've hit the material extremely hard so make sure you go in with a clear head. Get a good night's sleep and don't panic. That's my best piece of advice for you at this point.

[jstay]

@cpa8488, long day indeed. finishing up R3 right now then probably going to read R5 through

[Anonymous]

@angel thanks your awesome!

@jstay I despise r5 I'm doing those questions now.

I've gotten this question wrong literally like 5x….

Which of the following statements is generally correct regarding the liability of a CPA who negligently gives an opinion on an audit of a client's financial statements?

a. the CPA is only liable to those third parties who are in privity of contract with the cpa

b. cpa is liable to anyone in a class of third parties whom the cpa knows will rely on the opinion

c. cpa is liable to all possible foreseeable users of the cpa's opinion

d. cpa is only liable to the client

I keep picking C!!! Correct answer is B

A would be the ultramares decision- minority rule correct?

C would be correct if the question asked about fraud not negligence correct?

I guess what's throwing me off is the word “foreseeable” because Becker uses that word in their definition of majority rule.

[Tncincy]

@cpa8488 I here you….it;s gonna be a long day. I am 4 days behind with mother's day and days picking up children from college. I'm glad to have them home but trying to get back in the groove is hard. I guess I'll just jump in. Getting started too. Wondering if I should blitz first to refresh or mcq until I get on a roll…hummmmm

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

[jstay]

@cpa8488, yeah C would be for fraud, i think. the word foreseeable doe make it tricky though

[Anonymous]

Ok maybe this is a dumb memory tool, but this is how I remember that foreseen users, NOT foresee”able” is for negligence: ForeseeN and Negligence both have an N. I kept getting that one wrong too, so this has helped me.

[jstay]

@dpd thats really helpful!

just a reminder that when a corp makes distributions more then once a year accumulated E&P are applied chronologically and current E&P are applied pro rata

[Author]

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