[jeff]

Welcome to the REG CPA Exam study group for July & August 2018 exams. 🙂

Please introduce yourself & when you’re taking your exam (approximate timeframe).

REG Study Group Links and Resources:

1. NINJA Monthly – Full REG Course for $67/mo
2. How to Study for REG with NINJA Only
3. How to Pass REG in 20 Days
4. How to Retake REG After Failing
5. Video: Study Advice for REG
6. CPA Reviewed Podcast
7. CPA Exam Score Release Dates
8. NINJA MCQ Trending vs Actual REG Scores
9. I Passed the CPA Exam!
10. I Passed REG!
11. NINJA REG SIMS List by Topic
12. Free Downloads: NINJA REG

[Anonymous]

2017 taxation is testable till Q4 of this year.
Then here come the drastic new tax laws (2018 US Tax), the so-called Trump Law, i.e., massive tax reform legislation, testable beginning Q1 of 2019:(

[cpabro]

Thank you!!!

[El_Stillo]

Hi All

I'm stumped on the AICPA practice exam regarding the sale of Linda's car.

“Lina bought a new vehicle at the beginning of year 1 at a cost of $20,000. Lina did not elect to expense the vehicle under Section 179 or take bonus depreciation. The vehicle is not subject to listed property limitations. The depreciable life of this vehicle is five years, and Lina uses MACRS to calculate the depreciation for income tax purposes. Lina sold the vehicle on December 31, year 2, for $18,000. There were no other vehicle or equipment purchases in year 1.”

I can't seem to figure out the deprectiation deduction: I thought it would be 32% * 20,000 *.5 = 3200. But the answer is 2400. I feel like the solution has to be simple and I'm missing something.

The second question is regarding the remaining basis prior to sale is 14,600. I have no clue how, I came up with 14,800 (20,000 * 20%*.5 + 20,000 *32% *.5 )

Can someone tell me how to come up to the right answers?

[Anonymous]

@El_Stillo, yeah I thought those were weird too. not sure how they got those numbers.

[El_Stillo]

@AF maybe I'm not losing my mind then….

Working through Wiley problems right now and seem my approach is correct. Just maddening when you think you are doing something right and not get the expected results.

[Operation_CPA]

@Chandler

Thanks again man. This seems to be a common occurrence actually – I feel like Becker at times has over-simplified their textbook. I ran into another question today on NINJA where Becker left out a key detail in their book. Really glad I am supplementing with NINJA despite my confidence dropping a bit. I rather get questions wrong before the exam, than on the real thing.

[Anonymous]

@El_Stillo, you are missing something: business-use %. I am familiar with this question. Look at personal-use in one of the exhibits (based on mileage). It should be 75%. Therefore the right answer is 2,400 (20,000 * 32% * 75% * 50%)
Same thing for basis- first year depreciation should be pro-rated for business %.
Depr Year 1: 20,000* 20% * 75%= $3,000
Beginning basis= 20,000-3,000-2,400= $14,600

No need to multiply by 50% on first year depreciation, this is already figured into the depreciation %. Let me know if this makes sense or you have questions.

[Livliv101]

@Chandler thanks for your post. I haven't done the question yet but what you wrote makes sense!

[Anonymous]

No problem (: it should say 75% business-use by the way (25% personal use).

[Tncincy]

@chandler are you here to help us wanna be cpa's? Are you our motivational tutor guru for reg? Your posts are so on point, and make so much sense. I think I need to add some more study time. The sense of urgency still has not kicked in yet. What is wrong with me ? 🙁 My studying schedule doesn't seem to hold any momentum.

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

[El_Stillo]

@chandler BOOM . I didn't think to add the personal use on the calculation. I was able to easily do the first two questions (Mileage and Allocation of expenditures) which required the split. Also after obsessing over it realized that the first year was already taken in half so that's good to know for exam day. Thanks for the clarification, I truly despise the document review TBS questions.

[Anonymous]

@Tncincy, something like that lol- I guess I just really like REG. And @El_Stillo, the document review questions can definitely be a pain, but the AICPA sims are the best practice you can get for the exam!

[Starved_Wolf]

Getting kind of nervous with you guys saying that Becker oversimplifies things and skips out on important details. Im only using becker, should i start supplementing with ninja or some other review course even though my exam is 2 weeks away?

[Anonymous]

@Starved_Wolf, I wouldn't worry about it too much. Becker leaves out details, but so does every other review course. There is no way you can know 100% of everything that could possibly be tested (book would be 1,000+ pages LOL). But in my experience, any review course that is decent will prepare you very well for what you might see. I did not supplement Becker on any of my sections. I actually would probably argue that Becker's strongest section is REG, but that is definitely debatable.

[Tncincy]

@starved_wolf I'm with you biting those nails. I am also about 2 weeks a way and am about to lose my mind. I am supplementing with ninja mcq's . Oh Lord, this is stressful, but I mean to pass.

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

[Author]

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