[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

[pyacpa49]

@cultur3 The rule is that taxable income cannot exceed the exemption. So in both of your examples I would say no, he is not dependent based on this rule.

[cultur3]

@ pyacpa49 thank you!

F 83 4/09/16
A 85 6/10/16
B 81 7/19/16

[pyacpa49]

Well, tomorrow's the day. Good luck to anyone else taking it this quarter. Hopefully we don't see each other in the Q4 thread. Let's do this!!

[A1lessio]

good luck everyone. Decided to move my exam to Oct 17th, two days after busy season. Working full time and trying to cram it all in before the 7th caused me to nearly burn out.

AUD (08/02/2016)

[Spartans92]

A lot of questions in becker are asking from book to taxable income and I understand the concept and are getting the questions right. But what if it had asked the opposite from tax to book.. here is an example. This is the original.
Cape Co. reported book income of $140,000. Included in that amount was $50,000 for meals and entertainment expense and $40,000 for federal income tax expense. In Cape's Schedule M-1 of Form 1120, which reconciles book income and taxable income, what amount should be reported as taxable income?

instead, if it said Cape Co. reported taxable income of $140,000. Included in that amount was $50,000 for meals and entertainment expense and $40,000 for federal income tax expense. In Cape's Schedule M-1 of Form 1120, which reconciles book income and taxable income, what amount should be reported as book income? Would it be 230k?

BEC- PASS

[So FAR So Good]

@A1lessio – I think I'm in the same boat as you. Have my exam scheduled for 10/8, but I'm really feeling the pressure right now, and after R-1 and R-2 I'm experiencing a bit of brain drain.

Can someone give me their opinion on skipping around a bit in Becker's REG chapters? I'm so burned out from R-1 and R-2 that I'm considering slipping in the R-5 professional ethics lecture just to break things up in the tax section. Is this a bad idea? Is there anything in that section that I'd find more clarity in by doing R-3 and R-4 first?

F - 91 (6/5/2016)
A - 7/30/2016
R - 10/8/2016
B - 12/10/2016

[Paydirt123]

So FAR So Good: You know what they say about opinions right, lol. Anyway, my own two cents, do what you want. I personally used a similar approach with FAR and it worked out for me. Everyone's different, but do what you want, no reason for you to not learn the material because you want in different chapter order, IMHO

[livealittle]

can anyone explain the difference in c and d?

The fair value for an asset or liability is measured as:
a. The appraised value of the asset or liability.
b. The cost of the asset less any accumulated depreciation or the carrying value of the liability on the date of the sale.
c. The price that would be paid to acquire the asset or received to assume the liability in an orderly transaction between market participants.
d. The price that would be received when selling an asset or paid when transferring a liability in an orderly transaction between market participants.

BEC - 8/8/16
REG - 66, 77
AUD - 81
FAR - 9/8/16

[Paydirt123]

liveslittle: entrance vs exit price

[A1lessio]

So Far So Good – Yeah definitely skip around if you need a break from tax. I really enjoyed chapters 1-5 because it applies to work. I'm really struggling on the blaw. Maybe because I am not taking it seriously.

AUD (08/02/2016)

[dontmakemeaudityourass]

Hey I need a little help with this question i dont understand where the 10k is coming from (correct answer is C 10K):
Paul Pappas owns all of the stock of an S corporation which had previously been a C corporation. The S corporation had the following balances at the beginning of its tax year:

Accumulated adjustments account $ 8,000
Accumulated earnings and profits 10,000
Paul's stock basis was $20,000 at the beginning of the tax year. The S corporation made a distribution of $19,000 to Paul during the year. What amount of the distribution is taxable to Paul?

Incorrect A.
$0

B.
$8,000

C.
$10,000

D.
$18,000

[Paydirt123]

Don'tmakemeaudityourass: I'm confused myself. “What amount of the distribution is taxable to Paul?” I would think the entire $19k distribution would be taxable to Paul, the lone shareholder who received it? That's not even an answer choice? Are you sure the question isn't: “what part of the distribution is taxable to the corporation?” In that case, $10k is correct, as the S corp has accumulated E&P from when it was a C Corp, an exception for S Corps being taxed

[melody_pinaycpa]

@dontmakeme – For S corporations, distributions from Accumulated E & P or Current E & P are taxable but will not reduce the basis. Had the question asks for basis, it would be 11K. Basically, 10K distributions from A E & P are taxable but will not reduce basis while 9K is tax free distribution from AAA that will reduce basis and remaining 1K is a tax free return of capital to the extent of basis.

FAR (Apr 2015) - 88
AUD (July 2015) - 86
BEC (Oct 2015) - 82
REG - 73, 70, retake Sept 2016

[dontmakemeaudityourass]

Thanks!!

[Madam Secretary]

Is SOX no longer included in REG exam? if not why becker still has those mcq?

[Author]

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