[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

[willpassby2014]

Pulse Corp. maintained a warehouse where it stored its manufactured goods. Pulse received an order from Star. Shortly after Pulse identified the goods to be shipped to Star, but before moving them to the loading dock, a fire destroyed the warehouse and its contents. With respect to the goods, which of the following statements is correct?

Pulse has title but no insurable interest.

B.

Star has title and an insurable interest.

C.

Pulse has title and an insurable interest.

D.

Star has title but no insurable interest.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

@dpd I think “bonus depreciation” got eliminated for 2014 that's why Becker doesn't talk about it.

@willpass “goods identified” to me means they were tagged or marked or put off to the side and identified as, “these goods belong to willpass” this is the first step. If they are not identified how could you say, these goods over here are mine! you can't.

[Anonymous]

@jstay yes that seems right. To be honest, I don't even know 5 year versus 7 year property and which uses DDB. Becker didn't hammer that in too hard.

[jstay]

@willpass is it C,i hope its C. i dont see how star could get the title

[Anonymous]

i agree with C

[Anonymous]

I agree, but doesn't Star have insurable interest as soon as the goods are identified to in the contract (aka set aside in warehouse)?

[Anonymous]

All we need is a 75 I think we will all pass. Trust me on my first pass with this exam I don't think I even knew half of the info I know now. I only listened to the becker lectures and did approx 1200 ninja questions. In 4 weeks, plus school plus recruiting season. Of course, the exam won't be the same as the first time I took it. But I feel after listening to the Becker lectures, taking notes, re-reading the book over again, doing the mcq 2x over practicing some SIMS and doing almost 2000 ninja mcq (currently trending now at a 81%!!). It should be more than sufficient to get me to a 75.

@jstay and @dpd you got this as well. At this point it's go big or come back in July with the new tax laws and studying all summer. Nope, I refuse to give the CPA exam another one of my summers!!

[willpassby2014]

The answer is C and explanation given is as soon good are identified in the contract. I think which means marked for shipment may be

BEC Passed
FAR Passed
AUD Passed
REG Passed

[jstay]

gahhhhh who knows!!!!!! its REG we shouldnt even have all this crap. taxes and ethics i understand but who cares about commercial paper and all that jazz. i get a check i go to the bank and i cash it

[jstay]

@cpa8488 agreed, if (big IF) i do pass it will have taken me about a year. Mid may was when i started studying FAR and took it in August

[Anonymous]

Totally agree with you regarding putting all this B-Law on the exam. I can't see a situation when I will use this in practice and if a client does have an issue with who had title when a damn building burned down I will tell them to consult with an attorney!

[Anonymous]

jstay, I thought I remembered you from far study group

[jstay]

yep, hopefully i never have to visit that study group again. is anyone pressured this time around about parts expiring?

[Anonymous]

Yes I am afraid if I fail REG in July (I assume I'll fail in May for sure) and if BEC is harder than I think, FAR will expire. That would be a nightmare

[jstay]

@anjanja, your scores are great on the other two, im sure you will do fine on REG. your putting in the time. you have almost 3 weeks (thats where it all started clicking for me, in the review phase). You took FAR on 8/15/14 so i doesnt expire until Feb of 2016 right?

[Author]

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