[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

[princeCPA]

@cpa8488 Thanks so much!! got the questions.

BEC 79
FAR 86
AUD 79
REG 90

[princeCPA]

@jstay are you the same boat like me. If I fail REG, I will lose BEC and the world as we know it will be over. Lol.

BEC 79
FAR 86
AUD 79
REG 90

[Anonymous]

Under the 1933 Act, is rescission available as a remedy for the plaintiff, or just monetary damages? I am pretty sure rescission is available under 1934 Act, but wasn't sure about 1933.

[jstay]

@dpd im preeeettttyyyy sure that its not, only monetary damages. i thought i read that in my notebook today going over some things

[Anonymous]

Only monetary according to my notes

So irritated by all the ridiculous loading dock crap, keep getting it wrong. Who would think that stupid FOB questions could be tricky.

[Anonymous]

Question for those of you using Becker – I am into R2 and have noticed several instances where the text states that such-and-such expired at 12/31/14 and has not been extended. I am skimming those portions of the text…is that a bad idea? Is it even testable?

[Tncincy]

Ok guys….feeling insecure again. I have 17 days til testing, going through questions, not doing well at all, going back to notes but can't seem to get back to mcq's. I want to reschedule (pressure) but I want to go for it (no procrastinating)….I have the time to really rally and do non stop mcq's my nts expire in August, but I don't want to wait til July, If i reschedule, I will procrastinate….I know….a lot of ????? Help…I trust your opinion.

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

[jstay]

@tncincy i say go for it! 17 days is enough to cram and get through it

[okcpa2015]

Let the panic drive you! Felt like a knew nothing two weeks before FAR, studied more than I thought was possible, and nailed the exam.

17 days, you got this!

FAR - 91
REG - 88
AUD - 98
BEC - 88

[jstay]

can someone please explain how these distributions would be allocated? i get current is prorated and accumulated is chronological but i messed up on a practice sim yesterday and am now confused

On January 1 of the current year, Locke Corp., an accrual-basis calendar-year C corporation, had $30,000 in accumulated earnings and profits. For the current year, Locke had current earnings and profits of $20,000, and made two $40,000 cash distributions to its shareholders, one in April and one in September. What amount of the distributions is classified as dividend income to Locke's shareholders?

a.

$0

b.

$80,000

c.

$20,000

d.

$50,000

[ShmeePA]

@jstay Answer is D. There are two $40,000 cash distributions ($80,000). To satisfy the distributions you first take from the current E&P ($20,000). Any remaining is taken from Accumulated E&P ($30,000), which gives you a total of $50,000.

BEC-84
FAR-86
AUD-87
REG-79

[Anonymous]

Here is a question in my review course:

The Tinkers, Evers, and Chance Corporations have taxable income, all resulting from regular operations, of $100,000, $300,000, and $450,000, respectively. None is a member of a controlled group. The tax liabilities before credits in the current year are:

No tax tables are given. The correct answer is Tinkers $22,250; Evers $100,250, and Chance $153,000 and it is computed by multiplying the first $50k by 15%, next $25k by 25%, income above $75k by 34%, and some other adjustment I don't really understand.

My question is, simply, am I really supposed to have these tax rates memorized?

[Anonymous]

Agree with ShmeePA on Jstay's question. Correct answer $50k.

[Anonymous]

I don't think this is a question when you need to allocate

this is one when you do https://www.another71.com/cpa-exam-forum/topic/accumulated-earnings-and-profits-question#post-669795

[Anonymous]

@jstay, you can do the calculations on that type of problem if you want to, however, when you see that the total distributions are $80,000 (two $40,000 distributions), you can simply assume we are going to distribute all of our current and accumulated E&P, which is $50,000. That will be classified as dividend income.

Also, I know we covered this a few pages back on the forum, but did we ever determine if cash and cancellation of debt can be netted when you are determining gain to recognize on a like-kind exchange?

Thanks

[Author]

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