[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

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Future Ninja]

@Ano – is the answer C?

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@future ninja
I am not sure but I also think that answer should be C
these questions are very confusing.

[Future Ninja]

@Ano moving on to the next one:

Betty contributed land with a $6,000 basis and a $10,000 FMV to the ABC Partnership in Year 1. In Year 2, the land was distributed to Sally, another partner in the partnership. At the time of the distribution, the land had a $12,000 fair market value, and Sally had a $30,000 basis for her partnership interest. What gain is recognized by Betty on the distribution? What is Sally’s basis for the distributed land?

Gain………..Basis
A.$0……………$6,000
B.$4,000………$6,000
C.$4,000………$10,000
D.$6,000……….$12,000

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@future ninja
does answer is (a)

[Future Ninja]

@Ano – No. the correct answer is C.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

On September 1, 2015, Julie’s basis in her partnership interest was $75,000. In a distribution in liquidation of her entire interest on that date, she received properties A and B, neither of which were inventory or unrealized receivables. On September 1, 2015, property A had an adjusted basis to the partnership of $35,000 and a fair market value of $75,000. Property B had an adjusted basis to the partnership of $15,000 and a fair market value of $25,000. Based on this information, what was Julie’s basis in property A immediately after the distribution?
A. $35,000
B. $52,500
C. $56,250
D. $55,000

Answer: D. how?

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[If I can, u can too!]

Moniker I apologize I misinterpreted you and gave u the formulas that doesn't have much to do w basis calculation. Sorry.
shoot me an email at hokinizeu@gmail. I'll see if I can find some example for u.

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[monikernc]

hokinizeu – no worries and i will email. i am watching roger now for partnerships. he has no free videos for s-corp so i am still kind of lost. i hope you don't get spammed with emails!! that was brave of you – thanks.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Anonymous]

@ monikerc there is a free video for s corp by Varun Jain .he also explained it well.

[Anonymous]

@ Future Ninja
Betty contributed land with a $6,000 basis and a $10,000 FMV to the ABC Partnership in Year 1. In Year 2, the land was distributed to Sally, another partner in the partnership. At the time of the distribution, the land had a $12,000 fair market value, and Sally had a $30,000 basis for her partnership interest. What gain is recognized by Betty on the distribution? What is Sally’s basis for the distributed land?

I don't understand that why betty will recognize any gain upon the distribution of land to sally.
My understanding is this
1) when betty contributed land to the partnership then the basis of land to the partnership is $ 6000.
and
when the partnership distributes land to the sally whose basis in the partnership is $30000 and the distribution is nonliquidating so upon the distribution of noncash property ,basis to partner is lower of partnership basis of land or partner's basis for distributed property,$6000 is lower than $ 30000 so basis of land to sally will be $ 6000.
please correct me
Where am I wrong?

[Future Ninja]

Anyone please help? repost question:

On September 1, 2015, Julie’s basis in her partnership interest was $75,000. In a distribution in liquidation of her entire interest on that date, she received properties A and B, neither of which were inventory or unrealized receivables. On September 1, 2015, property A had an adjusted basis to the partnership of $35,000 and a fair market value of $75,000. Property B had an adjusted basis to the partnership of $15,000 and a fair market value of $25,000. Based on this information, what was Julie’s basis in property A immediately after the distribution?
A. $35,000
B. $52,500
C. $56,250
D. $55,000

Answer: D. how to get 55K?

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@ future ninja
Julie basis = $75000
adjusted basis of property A and B =$50000(35+15)
now the increased basis of $25000(75000-50000) will distribute in between of property A & B in the ratio of their unrealized appreciation .
for A 75000-35000= 40000
for B 25000-15000=10000
so the ratio is 4:1 now $25000 will divide in the ratio of 4:1
so for A it's 20000 and for B, it's 5000 basis for in total – 35000+20000=55000.

[Andyred04]

Future Ninja, I sat here and stared at that question for probably 20 minutes this morning. I can't for the life of me figure out how to arrive at $55,000. Are you positive this is the answer? What test bank did it come from?

I figured out how to get A – C but I can't even figure out how to arrive at D, let alone give an explanation for WHY that is the correct answer.

EDIT: Thank you Ano for that explanation!

FAR: 80 (Gleim, Ninja Notes, Ninja MCQs)
REG: 87 (Gleim, Ninja Notes, Ninja MCQs)
BEC: 87 (Gleim, Ninja Notes, Ninja MCQs)
AUD: 8/27/16

PA Candidate

[Future Ninja]

@Ano

Betty contributed land with a $6,000 basis and a $10,000 FMV to the ABC Partnership in Year 1. In Year 2, the land was distributed to Sally, another partner in the partnership. At the time of the distribution, the land had a $12,000 fair market value, and Sally had a $30,000 basis for her partnership interest. What gain is recognized by Betty on the distribution? What is Sally’s basis for the distributed land?

This is what they call pre-distribution gain. Actual Distribution is in current Y2. There was a pending Betty's gain from Y1 of usd4,000 which will be recognized upon actual distribution. For Land New Basis on Y2 (Adjusted Basis plus Gain recognized) which is usd6,000 plus 4,000 = usd10,000.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

@Andyred04 – this is from Gleim.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Author]

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