[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]

did anybody get to “moderate” question #16?

[Anonymous]

https://www.another71.com/2015-aicpa-released-cpa-exam-questions-far-aud-reg-bec/

[Anonymous]

you have to have an active ninja mcq subscription to access them. If not, you can view the demo questions. Not sure if the other companies ex. becker, wiley etc. have integrated them in their software yet.

[Anonymous]

can someone show me the calculation for MID-quarter?

ex. office furniture 10,000 placed in service in October..idk I'm just making it up lol

[jstay]

@cpa8488 ok so office furniture is 7 years. 2/7 x 10,000 x 1.5

i think

[jstay]

@anjanja yeah i got 16. i was shocked that problem was moderate and not difficult

[jstay]

so company X has a loss of 120 but thats including dividend of 10 from Y (it says x and y file consolidated) so that 10 should never be included – we now have 130 loss. it says Y has income of 140 and 30 from a less then 20% corp. so we need to DRD. I like to take 140 – the full 30 to bring me to 110. then with the DRD we only show 9 in income (30 x .70 = 21 DRD). add 9 to 110 for 119. were left with 11 loss

[Anonymous]

ugh I was keep trying to subtract 7000 as 70% drd, idiot

[Anonymous]

@cpa8488, in reference to this question:

Who is primary and secondarily liable?

Drawer

Maker

Acceptor

Issued of a cashiers check

“Maker” refers to a promissory note between two parties. Thus, I believe the maker of the note is primarily liable to the acceptor of the note. A “drawer” owns funds that he is “ordering” (order paper) a third party (drawee) to pay to the “payee.” Thus, I believe the drawer is secondarily liable to the payee if the drawee does not pay. This type of commercial paper is called a draft. It is three-party paper. Think of a check. When you write someone a check, you are ordering the bank to pay that person the funds out of your account. If the bank does not pay, you are liable. I believe a cashier's check is just a draft – a check guaranteed by the bank and the bank is primarily liable.

[Anonymous]

@thanks dpd that makes sense

@jstay so if its mid-quarter it will automatically be 1.5 regardless if was placed in service in oct, nov, or dec?

[jstay]

i think because “mid quarter” would be 1/2 through 3 months, or 1.5 but im not entirely sure. i dont think becker really did that great of a job on depreciation.Does anyone know/have any insight?

about to do those R3 sims. maybe tomorrow ill do a run through of R1 and R2 sims and then R4 on thurs. Gonna read R1 &R2 tomorrow and R3 &R4 thursday, maybe R5 too

[Anonymous]

I did a 140 questions in ninja today… Trending at a 82% and just over 1800 questions total. I can't do anymore. It's scary to think today might be the last day I will ever sit in my basement and study. I'm ready for Thursday and hoping for a 75 come score release. Taking tomorrow off for a movie and massage. I'll post my exam experience rant in the appropriate thread on Thursday. Goodluck on the rest of your studies you have all been a great help!

[Anonymous]

mid quarter 1.5 months, I calculate regular depreciation amount and divide by 8, there are 8 of 1.5 months in 1 year

[Anonymous]

yes, mid quarter for all if at least 40% placed in serviced (purchased??) in last quarter

[jstay]

@cpa8488 good luck! i really hope this is the last one for both of us!

[Author]

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