[jeff]

Welcome to the Q2 2016 CPA Exam Study Group for REG.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

[csvirk]

Axis Corp. is an accrual-basis, calendar-year corporation. On December 13, 20X1, the Board of Directors declared a 2% of profits bonus to all employees for services rendered during 20X1 and notified them in writing. None of the employees own stock in Axis. The amount represents reasonable compensation for services rendered and was paid on March 13, 20X2. Axis' bonus expense may:

A.
not be deducted on Axis' 20X1 tax return because the per share employee amount cannot be determined with reasonable accuracy at the time of the declaration of the bonus.

B.
be deducted on Axis' 20X1 tax return.

C.
be deducted on Axis' 20X2 tax return.

D.
not be deducted on Axis' tax return because payment is a disguised dividend.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Bear-Bear]

B. It's a salary expense, and rightfully deductible upon date of declaration. Pow!

[Spartans92]

csvirk, B?

BEC- PASS

[Just3Letters]

B. You can accrue and deduct in the current year if payout happens within 2.5 months 🙂

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Just3Letters]

lmao we all answered within one minute. So competitive!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Spartans92]

HAHAH…at least we all got +1! LMAO

We need a Like button..

BEC- PASS

[csvirk]

quickest response!!

yes it is B.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Spartans92]

I guess we all are staring at the screen waiting for new questions to be posted. 🙂

BEC- PASS

[csvirk]

I am done with NINJA for the day. Please Post more questions.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Bear-Bear]

What's the deal with Wiley Test Bank and “successful candidates regularly score above 60%”?? Is that for real?

[csvirk]

for REG I switched from willey to NINJA.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Bear-Bear]

I've never seen the test bank before even though I have CPAExcel and have used it for three sections so far. I am not sure if I'm just horribly unobservant, or it truly did just magically appear on the home screen recently. 🙁

[Bear-Bear]

I took three sets on the wiley test bank and got 90, 75, and 80. I think I'm officially done studying. I pray that I get the pass on saturday.

[Spartans92]

I seriously dont wanna study REG anymore. I wish this was my last exam. 🙁

BEC- PASS

[Just3Letters]

One last question for the night

Destry, a single taxpayer, reported the following on his U.S. Individual Income Tax Return (Form 1040):

Income:

Wages $5,000
Interest on savings account 1,000
Net rental income 4,000

Deductions:

Personal exemption $ 4,000
Standard deduction 6,300
Net business loss 16,000
Net short-term capital loss 2,000

What is Destry's net operating loss that is available for carryback or carryforward?

A.
$7,000

B.
$9,000

C.
$15,700

D.
$16,000

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Author]

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