REG Study Group Q2 2015 - Page 60

  • Creator
    Topic
  • March 5, 2015 at 8:08 pm #192517
    jeff
    Keymaster

    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

Viewing 15 replies - 886 through 900 (of 3,544 total)
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  • March 30, 2015 at 4:04 pm #678093
    Anonymous
    Inactive

    What is the percentage of estimated payments for corporate taxes?

    March 30, 2015 at 4:37 pm #678094
    OnlyBelieve
    Participant

    cpa8488- For small corps, It is 100% of the lesser of the current/previous year's tax on the return. If the corporation is a large corp(i.e over $1M or more in any of its preceeding 3 tax years), then they may pay 100% of the current year's tax only

    AUD - DONE
    BEC - DONE
    REG - 04/04
    FAR - 05/30

    March 30, 2015 at 5:08 pm #678095
    Gabe
    Participant

    Union Co. possesses the following instrument:

    _____________________________________________________________________________

    |

    | Holt, MT $4,000 April 15, Year 9

    |

    | Fifty days after date, or sooner, the undersigned promises to pay to the

    | order of

    |

    | Union Co.

    | Four Thousand Dollars

    | Salem Bank, Holt, MT

    |

    | Ten percent interest per annum

    |

    | EASY, Inc.

    | Thomas Foy

    | Thomas Foy, President

    Assuming that all other requirements of negotiability are satisfied, this instrument is:

    A.

    not negotiable, because of a lack of a definite time for payment.

    B.

    nonnegotiable, because the numeric amount differs from the written amount.

    C.

    negotiable, even though a payment date is not specified.

    D.

    negotiable, because it is payable in a sum certain in money.

    CPA, CFE
    CISA- Experience will be completed by August 2016

    March 30, 2015 at 5:09 pm #678096
    OnlyBelieve
    Participant

    RE: Large corps -Over $1M or more in taxable income……

    AUD - DONE
    BEC - DONE
    REG - 04/04
    FAR - 05/30

    March 30, 2015 at 5:15 pm #678097
    Anonymous
    Inactive

    Yeah that's what I have written down. I came across a question that said 95% maybe I misread it.

    March 30, 2015 at 5:36 pm #678098
    Gabe
    Participant

    Also must owe at least $500 in estimated taxes to file.

    whereas, individuals must owe at least $1,000 in estimated taxes to file

    < 150k AGI—> lesser of: 100% PY/ 90% CY

    >$150k AGI—> lesser of: 110% PY/ 90% CY

    CPA, CFE
    CISA- Experience will be completed by August 2016

    March 30, 2015 at 5:42 pm #678099
    Anonymous
    Inactive

    I'm not understanding organizational costs. Why do we subtract 5,000 then add it back to expense?

    March 30, 2015 at 5:58 pm #678100
    Gabe
    Participant

    A taxpayer purchased and placed in service during the year a $61,000 piece of equipment. The equipment is 7-year property. The first-year depreciation for 7-year property is 14.29%. There is an allowable Section 179 limit in 2014 of $25,000. What amount is the maximum allowable depreciation without using bonus depreciation?

    A.

    $25,000

    B.

    $8,717

    C.

    $30,144

    D.

    $33,717

    Why are we using 14.29%? It is a 7 year prop, shouldn't it be double declining (i.e. 28.57%)

    CPA, CFE
    CISA- Experience will be completed by August 2016

    March 30, 2015 at 6:00 pm #678101
    Gabe
    Participant

    The $5k lowers the amount that is amortized, thus, lowering your taxable amount.

    CPA, CFE
    CISA- Experience will be completed by August 2016

    March 30, 2015 at 6:07 pm #678102
    Anonymous
    Inactive

    Another issue I'm confused about charitable deductions limit to 10% of taxable income. The div. rec. deduction keeps screwing me up.

    Co A. Yr 2 TI before the deduction for charitable contributions was $410,000. Included in that amount is a 20,000 DRD. What amount can co. A deduct as charitable contributions.

    The answer solutions added the 20,000 to 410,000 why? It says it includes it. Then the solution says charitable contribution ded. Is limited to 10% of TI before the DRD and charitable contribution deduction. Didn't they just do the opposite? What am I missing here?

    March 30, 2015 at 6:19 pm #678103
    Gabe
    Participant

    @cpa https://www.another71.com/cpa-exam-forum/topic/becker-study-materials

    Basically, look at R3-24.

    Poorly worded question :/

    CPA, CFE
    CISA- Experience will be completed by August 2016

    March 30, 2015 at 6:49 pm #678104
    OnlyBelieve
    Participant

    Gabe- C

    50 days after date will be payable on June 4 Yr 9, which makes the instrument negotiable because it it payable at a specific time or sooner.

    AUD - DONE
    BEC - DONE
    REG - 04/04
    FAR - 05/30

    March 30, 2015 at 6:58 pm #678105
    Gabe
    Participant

    @only answer is D. It cannot be considered negotiable if the date is not specified. I originally chose A because it says, “Fifty days after date, or sooner.” If it's paid “sooner”, that's not very specific.

    It reminds me of the other questions, “payable after Uncle Timmy dies”= non negotiable because the time is not specified.

    CPA, CFE
    CISA- Experience will be completed by August 2016

    March 30, 2015 at 8:47 pm #678106
    OnlyBelieve
    Participant

    Thanks

    AUD - DONE
    BEC - DONE
    REG - 04/04
    FAR - 05/30

    March 30, 2015 at 9:01 pm #678107
    Gabe
    Participant

    @only whats your game plan this week?

    CPA, CFE
    CISA- Experience will be completed by August 2016

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