[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Mamabear]

Hey Kemy! Sure. It's Zubairs, Bucky, wannabe, and I right now. We are quizzing on C-corps using MCQ and flashcards. We're numbering the questions so you can tell when scrolling up and down which ones we're talking about. You may want to take off signature for this because of the amount of room it takes up and the constant scrolling up and down. Jump right in! We try not to move on to new questions until every one understands the prior one so that we can all get the most out of this.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Mamabear]

Dang it!

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[CPAfit]

This is what I looked at before answering

If distributed property is subject to a liability in excess of the basis of the distributed property, FMV is deemed to be not less than the amount of the liability.

Since the liability is less than the basis, the FMV of the land is assumed

[Kemy]

C – $30,000

FAR - 02/24/14 - 86
AUD - 04/03/14 - 88
REG - 05/29/14 - 68 Retook 11/22/14 - 81 I PASSED!!!!!!!!! IM DONE! Thank You Jesus!
BEC - 07/19/14 - 85

[WANNABE_CPA]

I am confused is it A or B? I got $35000 too …please say you typed A wrong

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

I typed A right (sorry @wannabe). I just forgot the rest of the answer – Fox would have $35,000 of dividend income since earnings and profits is at least this amount. However, the basis in the property received as a taxable dividend is always the fair market value of the property, or $38,000

[WANNABE_CPA]

10. ParentCo, SubOne, and SubTwo have filed consolidated returns since their inception. The members reported the following taxable incomes (losses) for the year:

ParentCo $50,000

SubOne (60,000)

SubTwo (40,000)

No member reported a capital gain or loss or charitable contributions. What is the amount of the consolidated net operating loss?

A.

$0

B.

$30,000

C.

$50,000

D.

$100,000

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Kemy]

So the basis is always FMV, because it's a C Corporation right? Are the rules different for a partnership?

FAR - 02/24/14 - 86
AUD - 04/03/14 - 88
REG - 05/29/14 - 68 Retook 11/22/14 - 81 I PASSED!!!!!!!!! IM DONE! Thank You Jesus!
BEC - 07/19/14 - 85

[Mamabear]

10–I'm going with C, but I'm not on a roll so it's probably something else.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

@wannabe – $50K loss? That seems too easy.

[Kemy]

C – $50,000

FAR - 02/24/14 - 86
AUD - 04/03/14 - 88
REG - 05/29/14 - 68 Retook 11/22/14 - 81 I PASSED!!!!!!!!! IM DONE! Thank You Jesus!
BEC - 07/19/14 - 85

[CPAfit]

@wanna

C.

$50,000

[Mamabear]

@Kemy–I think that is the rule when it is received as a Dividend, so it doesn't apply to partnerships, right?

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[WANNABE_CPA]

10. C is right.

@kemy..you asked about partnership basis and my mind went blank..why do i get soo fixated and forget all about rest topics done…does that happen to all?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[WANNABE_CPA]

that was a confidence building question all 🙂

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Author]

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