[jeff]

Welcome to the Q3 2016 CPA Exam Study Group for REG.

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

[Josh]

Nice one Lynchuu!My guess is you need to figure out what's principal (corpus/res, etc.) or income? Taxable interest and dividends are income, and will end up on the 1040 non-taxable dividends & interest is principal and goes to the 1041. They distribute k-1's like partnerships. I should get out my TurboTax Pro the details, lol?. Consider this:

The scope of secured transactions under Article 9 of the Uniform Commercial Code does not include

A. After-acquired collateral.
B. Transactions in which title to the collateral has not passed.
Answer (B) is incorrect.
With minor exceptions, Article 9 applies regardless of whether title is held by the debtor or the secured party.
C. Sale of corporate debentures..
Answer (C) is correct.
Article 9 applies to security interests created under Articles 2, 2A, 4, and 5. It also applies to (1) security interests in personal property and fixtures arising under contract; (2) agricultural liens; (3) consignments; and (4) sales of accounts, chattel paper, payment intangibles, and promissory notes. It does not apply to sales of corporate debentures, which are bonds not secured by specific collateral. These transactions are governed by Article 8 of the UCC, other state statutes, and possibly the federal securities laws. However, corporate debentures and other investment property may be collateral under Article 9.
D. Consignments.

is the answer “B” rresponse seem “twisted”? Time for my 18th sim 🙂 All the best, y'all! You can do it! *poof

[CPA2BEE]

@Dr Cash I hope you smoked it! Thinking positive for the whole Q3 REG group. What did you think of your MCQ testlets? Did they change? Time for you to go fishing, I'm heading out Thursday night.

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Anonymous]

yeah good vibes to the rest of the group! i think i did better on the MCQs but they definitely threw a few curveballs. i can't ever tell if the testlets were medium/hard, but i flagged about 6 questions on each of them.

and yeah, time to go fish 2BEE! have a good time. 🙂 i think i might actually go back this weekend and do some bay fishing down here on the gulf coast…

[CPA2BEE]

Right on Dr Cash, good luck fishin! Maybe I'll post a fish report when I get back on Sunday haha. I wish we could post pics on this forum.

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[RAJWINDER]

Can anyone explain me about Hobby Expense and Lobby Expense? I seen in the REG exam. But i didn't read in the Wiley book. May be i skipped it by mistake.

[jad11]

I am confused about unconditional promises and restrictive endorsements. For restrictive endorsements, the text gives as an example: “pay Paula Payee only if she has mowed my lawn.” That looks like a conditional promise to me.

Could someone please clarify? Please tell me if bullet points below are correct.

-Unconditional promise is part of requisites of negotiability and it is for items that are in the FRONT of the instrument
-Restrictive endorsements are taken into account when deciding if a person is a holder in due course and that relates to items that are in the BACK of the instrument.

[Just_Trying_To_Pass]

Anyone have some good techniques to for learning the UCC. I have re-read the chapters and when I start to think I have a feel for the material I go do the multiple choice and get hammered. Frustrating!

BEC: 70, 83
REG: 8/13/16
FAR:
AUD:

[LaidBackCPA]

@RAJWINDER, hobby expenses are deductible to the extent of hobby income, just like with gambling losses. I'm not sure about lobby expense though. It was literally one sentence in my Gleim book. I only remember it bc there was a question about it in my MCQs.

@Just_Trying_To_Pass, I had issues with the UCC too. Roger has some videos on article 9, secured transaction, on YouTube.

FAR: 76 (4/2/2016)
REG: 64 (6/10/2016); 78 (7/12/16)
AUD: (9/2/2016)
BEC: (10/3/2016)

Studying for these exams with no accounting experience!

[Teal]

Okay, so I know he says that if the 179 changes for 2015 that it won't be reflected on the exam, but what about for 2016? Because what he has in the book is the old small numbers. Not the new ones.

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[.]

@jad11

Your bullet points look correct. That Paul example would not be a negotiable instrument.

“Without recourse”= Qualified indorsement

“Pay to Jim, Signature XXX”= Special indorsement
turns the instrument into order paper

“Signature XXX”= Blank indorsement
turns the instrument into bearer paper

“For Deposit only”= Restrictive indorsement

FAR - June 2016 - 88
REG - July 2016 - 89
AUD - Aug 2016 - review phase currently
BEC - Sep 2016 -

Wiley CPA Excel & Ninja MCQ

[Anonymous]

Types of Endorsements:
4 [RQBS]
R – Restrictive => “COD” [Collection, Only, Deposit]
Q – Qualified => “GRC” [Without Guarantee of Payment; Without Recourse; Without Contract Liab. ]
B – Blank => Mere signature of holder
S – Special => “Pay J. Smith” => Special = Specific Person => includes the name of a new endorsee

Restrictive Endorsement shows any of the wordings such as:
3 [COD]
C – Collection => “For Collection”
O – Only => “For Deposit Only”; “Pay J. Smith Only”
D – Deposit => “For Deposit Only”; “For Deposit”

[Spartans92]

Which of the following transactions will be exempt from the full registration requirements of the Securities Act of 1933?
a.
All offerings made under Regulation A.
b.
Any stockbroker transaction.
c.
Any resale of a security purchased under Regulation D offering.
d.
All intrastate offerings.

I officially dislike B-Law… the wording is so confusing.

BEC- PASS

[Anonymous]

Yes, Spartan, I feel you. Not that I hate REG, but it truly hates me. Took me 6 tries before I passed it.

Let's see.
Generally, A, B, and C are all exempt, except that each has its own “exception/s”.

I think, only D has no exceptions. That could be the answer, not so sure. But that's final.
(Who wants to be a millionaire?–Liner)

References:
Intrastate Sales
(1) Securities are sold only to the State residents;
(2) Issuer must do 80% of its business in that state;
(3) Purchasers cannot resell the securities for 9 months to nonresidents of that state.

[Spartans92]

HAHA AmorD I thought D was the answer too. But clearly that isn't. A is actually the correct answer. Becker does a terrible job at explaining plus I have the older edition for the book (V1.2) I have to print the update and read on it.. I probably missed it since I didnt read for Regulation A.

Overall my concern is tax part and not really B-Law. Just wanna get through the rest of the chapter so I can start reviewing my weak areas (C-corp, S-corp, and partnerships). individual taxation should be a piece of cake.. LOL

Thanks for the help tho!

BEC- PASS

[Anonymous]

What a shame (of me), haha.

Oh well. You can get easy points with BLAW and Ethics if you master all NINJA's MCQs.
But I think, Pete Olinto did great with the REG lectures to make all his video fun and engaging to watch.

Yes, I can never get all the business entities straight either with all the basis, taxable income, etc.

Regulation A (Partial Exemption) {Unaudited FS is okay}
(1) It is a partial exemption, permitting a simplified form of registration that costs less to prepare than full registration.
(2) Instead of filing a registration statement, the issuer files an offering statement, which consists of a notification and an offering circular.
(3) May not exceed $5M in a 12-month period.
Change of verbiage to distinguish Reg. A:
(a) RS becomes “Offering Statement”
(b) Prospectus becomes “Offering Circular”

[Author]

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