[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

[Future Ninja]

@tncincy – thank you. You input is much appreciated. I forgot that rule! Thanks for reminding.

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

[Anonymous]

@ tncincy @ future ninja
What are Ann’s, Bob’s, and Carol’s shares of the loss to be reported on their 2015 individual income tax returns?
Is 19000,15000,and9000 will go to their Individual tax return.

[Anonymous]

Is SOX is still testing in REG?

[Future Ninja]

@Ano – yes. you are correct. SOX I think is not included and PCAOB too. I'm not too sure.

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

[Future Ninja]

A principal will not be liable to a third party for a tort committed by an agent

A. Unless the principal instructed the agent to commit the tort.
B. Unless the tort was committed within the scope of the agency relationship.
C. If the agency agreement limits the principal’s liability for the agent’s tort.
D. If the tort is also regarded as a criminal act.

answer: B

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

[Blue.auditor]

@EuroAddict & emitremus3, thanks for your responses.
I should have been more careful in reading the question 🙂

FAR 90 - 11/16/2015
BEC 81 - 2/14/2016
REG 87 - 5/23/2016
AUD - 8/8/2016

[Blue.auditor]

Guys,

I have a question regarding a year 2 MACRS Depreciation.

Personal asset was bought January 1, Year 1. Cost is $44,000. Life 5 years.

Following the MACRS table for half year convention, the depreciation for 1st year is ($44,000 * 15%) = $6,600.
I understand the 1st year depreciation.

However, when it comes to the second year, it says:
$44,000 × 25.5% × 50% = $5,610 half-year convention, 150% declining balance

I don't understand the 50% !!! Why?

This is simulation 47 of Ninja.

FAR 90 - 11/16/2015
BEC 81 - 2/14/2016
REG 87 - 5/23/2016
AUD - 8/8/2016

[oasamercel]

Took REG in Japan on Monday, I think (or hope) I barely passed it…
I solved ard 5,000 MCQs on Ninja, but felt there were many questions that I've never seen.

FAR - 92
AUD - 90
REG - 86
BEC - 6 Jun

[Andyred04]

Blue.Auditor I just checked out that SIM. It says toward the bottom that the farmer sold the truck in year two when he purchased the new truck. When an asset is sold during the year, the half-year convention is used and I guess you multiply by .5.

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

[mpd92]

Parent Company X and sub company Y share a calendar year consolidated income tax return. Company X reported a $120k tax loss, which included a $10k dividend from Y. Company Y reported $140k of taxable income, which included $30k of dividends received from less than 20% owned stock investments. Neither company took into account the DRD. What's the groups consolidated tax loss for the year?

A. ($1,000)
B. ($4,000)
C. ($11,000)
D. ($20,000)

Answer is C…not entriely sure how its calculated

[mtaylo24]

@mpd92: You can't count the $10,000 dividend from Co Y because they are a sub co, so your loss goes from $120K to $130K after you subtract that dividend from Income. Co Y reports a $140K in TI then deducts 70% of the $30,000 dividend as a dividends received deduction ($24,000), since it was received from less than 20% owned.

So Co X: -$120,000 loss – $10,000 (dividend from y) = (130,000)

Co Y: $140,000 – $21,000 (DRD) = 119,000

119,000 profit (co y) – 130,000 loss (co x) = (11,000)

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mpd92]

A husband and wife agree to split monetary gifts to their relatives. The husnabd gives his daughter $20,500, and the wife gives her neice $17,000. The annual exclusion is $12,000. What amount is the taxable gift for the husband and wife?

A. $0
B. $13,500
C. $17,000
D. $37,500

Answer A. I'm confused why the answer isnt B.

[marqzho]

mpd92

1 person = $12000
husband and wife = 2 person = $24000
So they can give $24000 per recipient tax free.

REG 90
FAR 95
AUD 98
BEC 84

[mpd92]

I apprecite the 2 responses. This is hopefully my last question today, lol….

Kuo sells residential rental property to his son, Karl for $100,000. Karl gives Kuo $1,000 and an installment note for the balance of $99,000. Kuo's basis is $50,000. Karl pays Kuo $4,000 in year 1. In year 2, after paying Kuo $5,000, Karl sells the property for $70,000. Which of the following statements is correct?

A. Kuo should report the entire gain of $50,000 in year 1 becasue installment saels of depreciable property are not allowed between rental parties
B. Kuo should report $2,500 gain in year 1.
C. Kuo should report the entire gain pf $50,000 in year 1 becasue Karl disposed of the land within tow years of purchase
D. Kuo should report a $49,000 gain in year 2

Answer is B…no idea how to calculate

[mtaylo24]

You have to use the gross profit ratio formula. Profit is $100,000 sale – 50,000 basis. 50,000 Profit divided by the 100,000 contract price is 50%. You received $5,000 in cash ($1,00 down pmt + $4,000 installment). 50% * $5,000 = $2,500.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Author]

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