[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

[jstay]

isnt there technically a loss? A exchanged 20,000 for something 13,000 (10 +3) losses arent recognized?

[Anonymous]

That makes sense. Duh totally missed that part! I'm freaking loosing it guys! Thanks I was seriously staring at this question for 10 minutes like what am I doing wrong!!! Thank u!

[Anonymous]

I don't think they have a tendency to allow losses left and right. If the answer is 17000:

DR Cash 3000

DR New asset (plug) 17000

CR Old asset 20000

[Anonymous]

Also, I have a little trick since I could never remember the difference between fraud in the execution/inducement. Here it goes don't laugh at me…

Fraud in the execution= baseball player autograph.

(Baseball player executes the pitch)

(He doesnt know he's signing a contract)

R in real defense, r in player and r in autograph

Fraud in the inducement= incorrect facts in the contract.

(Party is aware there is a contract but not of what's written)

I for inducement and I for incorrect

[Anonymous]

cpa8488,

I would also answer 20000. They keep teaching us to memorize and use certain algorithms and suddenly you have to think outside of the box. That's just cruel!

[Anonymous]

jstay, is your test tomorrow?

[willpassby2014]

Guys the answer is 17000

realized loss on this exchange of $7,000 ($13,000 amount realized – $20,000 adjusted basis).

He received $3,000 of boot, but boot does not cause realized losses to be recognized. Therefore, the recognized loss is zero and the postponed loss is $7,000.

basis in the acquired van is its FMV ($10,000) plus the postponed loss ($7,000) = $17,000.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[jstay]

nope exam is friday

[Anonymous]

If you check this thread, good luck cpa8488!

And good luck tomorrow jstay!

[Anonymous]

Yeah good luck cpa8488!

[Anonymous]

Thanks everyone I'm quickly going over the aicpa example exam that only has a few questions. I was doing one of the sims and I'm still confused about one thing that's bothering me. I asked about it before a few pages back. For depreciation

Office furniture: 10,000x 2/7/2 (because it's half year) got that and understand. But what it was mid-quarter would it be

10,000×2/7/1.5 or would you multiply 1.5? I wasn't going to worry about it but it's bothering me!!

[Anonymous]

I usually calculate full year first 10000/7*2=2857.14 and divide by 8 = 357.14

[Anonymous]

I think you multiply by 1.5

[Anonymous]

If you multiply you get 4,285.71 no where near anj answer! I'm doomed

[Anonymous]

so you need to calculate double declining for 1/2 quarter, quarter is 3 months, so you need it for 1.5 months. Just calculate full year first 10000/7*2 = 2857 then calculate how much is for 1 month 2857/12 = 238.08 now multiply by 1.5 = 357. Little longer but very straightforward

[Author]

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