[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

[Tncincy]

Is there a good lecture on corporations on you tube? does anyone know?

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

[jmu4040]

My first and last post ever on this site…DONE!! Good luck to the rest of you.

FAR - 79
BEC - 81
AUD - 69, 87
REG - 82

[diabloargentino]

Took REG mid-May, got a 71. Pretty upset but need to refocus right away. I signed up for a re-take already and just waiting to get my NTS to reschedule for the first weekend of July.

This unfortunately means two things:

1. Tax updates in effect
2. DRS in effect

I will definitely review the new DRS updates Becker has put out in their courses. What are your thoughts on time spent for new tax updates? They rarely test specific numbers (though not impossible) so is it worth my time to remember all the new tax numbers on the chance I only get a few question max? As opposed to spending that time solidifying the other areas?

Curious to everyone's thoughts and/or gameplan when failing and having to retake. Thanks in advance.

[GitRDone2017]

@diabloargentino from what I have heard, the DRS isn't supposed to be happening until April 2017, anyone else have better info? I believe you are correct about the tax updates though

"Confidence is going after Moby Dick in a rowboat and taking tartar sauce with you" - Zig Ziglar
Ninja book + Ninja MCQ + Roger
AUD Oct 2016
FAR Nov 2016
BEC ?
REG?

[Anonymous]

New Simulation to Debut on CPA Exam in July 2016
The Document Review Simulation (DRS), a form of task-based simulation, will debut on the Uniform CPA Examination in July 2016. The DRS was highlighted in the Exposure Draft, Maintaining the Relevance of the Uniform CPA Examination, and is included in the AUD, FAR and REG sections of the recently updated CPA Exam sample tests.

https://www.aicpa.org/BECOMEACPA/CPAEXAM/EXAMINATIONCONTENT/Pages/default.aspx

[Anonymous]

@Dr Cash A Milli will there be any material changes? Im currently using BECKER 1.3 version is it enough?

[GitRDone2017]

Dr Cash A Milli, thanks for the info, darn it all!

"Confidence is going after Moby Dick in a rowboat and taking tartar sauce with you" - Zig Ziglar
Ninja book + Ninja MCQ + Roger
AUD Oct 2016
FAR Nov 2016
BEC ?
REG?

[Just3Letters]

Adbulrahman,

Becker 1.3 was updated for the Q3 changes so you should be good. Watch out for anybody using the Ninja audio for Reg though. For some reason Jeff didn't update from 2015 phase-out numbers :/

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

[Martin]

I had this simulation, what do you think is the answer?

If a C-corp had 70K in earnings and profit and distributes 80K, what will the following shareholder received, assuming he owns 10% of the corporation=

Shareholder's basis is 5K

The dividend that he will receive is 10% of 70K (E&P) or 10% of 80K (distribution)

I know his 5k basis will be reduced by the distribution, but I don't know if it will be 10% of 70K or 80K. I thinking it should be 70K cause the dividends usually come from E&P. What do you think?

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[Tncincy]

Sally Markey, who owns a heavy construction company, decided to spend some of her $2,000,000 2015 profit on a heavy-duty diesel truck costing $111,000 for her business. In order to lower her income taxes for the year, she decided to take the maximum Section 179 deduction plus the MACRS depreciation for 7-year property. The ceiling for Section 179 in 2015 is $25,000. No other capital assets were purchased during 2015. What is the total deduction for the truck in 2015?

A.
$25,000

B.
$37,289

C.
$15,862

D.
$40,862

Sally Markey took the largest Section 179 deduction available in 2015, $25,000. This reduced the truck tax basis.

Equipment purchase $111,000
2015 Section 179 25,000
1st-year depreciation [($111,000 – $25,000) x 0.1429] 12,289
Total expense for 2015 ($25,000 + $12,289) 37,289

I understand and follow the section 179 rule but where did the 0.1429 % come from. How will we know the macrs depreciation?

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

[Anonymous]

@tncincy
MACRS depreciation rate for heavy truck is 7 years 200 %
so 200/7=28.57%
then use the half year convention so divide 28.57 by 2 =14.285 or 14.29%

[Tncincy]

Thanks Ano, I knew the 200% but missed the 1/2 year.

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

[alanam]

Over the long roads
ninja review did I hear
with no room in my mind.

Trusting the Ninja, good and bad,
I did sit.
For the closing window.

As the clock did count
Atop the screen. I see the
Letters after my name.

FAR - 79 (Expires 8/31/16)
AUD - 75 (Expires 11/30/16)
REG - 66 (June 8 Retake)
BEC - 88 (Expires 8/31/17)

[monikernc]

nice work alanam. i like that.

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

[csvirk]

Kisco Corp.’s taxable income before taking the dividends-received deduction was $70,000. This includes $10,000 in dividends from an unrelated taxable domestic corporation. Given the following tax rates, what would Kisco’s income tax be before any credits?

Partial Rate Table Tax Rate
——————————— ——–
Up to $50,000 15%
Over $50,000 but not over $75,000 25%

A.
$10,000

B.
$10,750

Incorrect C.
$12,500

D.
$15,750

Explanation:

Taxable income before taking dividends-received deduction $70,000
Less: Dividends-received deduction ($10,000 × 0.70) (7,000)
——–
Taxable income $63,000

$50,000 × 0.15 = $ 7,500
+ 13,000 × 0.25 = 3,250
——-
$10,750

Why are they taking 70% deduction? Thanks

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

[Author]

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