[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

[Anonymous]

@C.P.A the third
is answer is C

[wcn825]

@ano thank u so much. u explained that so much better than ninja lol

[Anonymous]

@cpa the Third Unless I have the luxury of time, I pretty much came to the same conclusion you did about these really long questions. I wonder if that's an actual question or one of those designed to test your knowledge on 15 different concepts courtesy of Becker.

[Claudia408]

Has anyone completed Ninja SIM #44 (New Partner Admission)? There is no explanation of how to arrive at “Change in Partner's Basis as a Result of Connie’s Admission”

Answer is $2,160 for Andrea and $3,240 for Buffy

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Claudia408]

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Anonymous]

@Claudia408

Connie entered with cash$5,000, property $13,000 with the mortgage of $6000
so new partnership ratio is 36;54;10
so new partner C liability is assumed by partnership in ration 36,24,10
so A assumed 36%6000=2160
B assumed 54%of 6000=3240
and C assumed 10% =600
C basis is cash + property – liability given + his share of liability

5000+13000-6000+600=12600
and partnership basis in the property is $13000

[Tncincy]

With these questions and explanations, I think I might need to increase my study to more notes and more mcq's…reg on 6/10…no early nights in sight. :-/

It begins with a 75
Been here too long as a cheerleader....ready to pass

[mckan514w]

@wcn825 Passive Loss can only off-set Passive gain- so in this question they have $35,000 passive loss from real estate and a $15,000 passive gain from S-corp so the amount of real estate loss they are able to recognize is $15,000 which is the amount of passive gain they have.

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Snicklefritz]

I just took my exam today and had a DRS sim. I've read they aren't supposed to start until July 2016. Do you think that was the pre-test sim?

AUD: 2/29/16 - 99
REG: 5/13/16 - 91
BEC: 6/3/16 - 90
FAR: 8/3/16

[monikernc]

i think so but if i get one i am going to attempt it. some guy who took FAR claims he had 4/7 with some form of document review so maybe there is a strange hybrid lurking out there. his main complaint was all the toggling between the doc and AL and answers and finding his place again. very time consuming.

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

[FAR_WARS]

Anyone have a good way to remember what is added/subtracted when going from NI per TAX to NI per Books? (or vice versa). Like a mnemonic or something?

Or is it Perm differences vs. Temp differences on the m-1? I am getting some gnarly FAR flashbacks.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

Farwars, i find using the actual tax forms helpful. other than that for the questions i have done it has been the obvious stuff like nontax income, actual bad debt expense and warranty exp vs accrued amts. you always add fed tax back to book
income. it is pretty much the tax side of perm and temp differences

i also wanted to post this website for basis problems – it has quizzes but the explanations are vague. this page lists several examples for sect 351 transactions that are thorough.
https://tax.cchgroup.com/downloads/files/contemporary-tax-practice/Module2/Topic3/B-Sec-351-Transfers-Basis-Property-Received-Corporation.asp

it has partnership info too.

and book income to tax reconciliations: https://tax.cchgroup.com/downloads/files/contemporary-tax-practice/Module4/Topic1/C-Corp-M1-M3-Reconciliations-Book-Taxable-Income.asp

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

[Claudia408]

did anyone do Ninja SIM 53?

Instructions say, “Starting with taxable income as a benchmark, select the effect of each of the following items in the calculation of current-year earnings and profits”

I thought the question was asking for additions/subtractions to E&P, which I guess one would need to calculate taxable income first, then you could calculate E&P. Was I supposed to think of taxable income first?

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[monikernc]

claudia, this website does a good job of explaining the E&P calculation with examples.
https://www.thetaxadviser.com/issues/2013/oct/kaiser-oct2013.html

bottom line you have to know what was already included in taxable income and think in terms of what amount is available to pay dividends. you make additions and deductions to taxable income to get to E&P. if you read the solutions to the sim you will see these discussed on the web page i provided above. the website demystified the process for me.

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]

Spencer, who itemizes deductions, had adjusted gross income of $60,000 this year. The following additional information is available:

Cash contribution to church $4,000
Purchase of art object at church bazaar
(with a fair market value of $800 on
the date of purchase) 1,200
Donation of used clothing to Salvation
Army (fair value evidenced by receipt
received) 500

What is the maximum amount Spencer can claim as a deduction for charitable contributions this year?

A 5,400
B 5,200
C 4,900
D 4,400

[Author]

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