[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

[WANNABE_CPA]

Got 80% on Adj and deduction Becker questions…atleast now i feel little comfortable with Individual taxation, but the AMT part of Individual is still horrible.

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

[Anonymous]

@funtiks–I would expect a decent amount of AMT questions as well as a SIM.

[pia ach]

Cpamommy when will u be quzzing over blaw questions?

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[Anonymous]

I'm still working on them in Ninja. I also have to do corporate tax in Ninja. I still have 870 questions I haven't seen in Ninja. I'm a little behind so I'm going to try to knock out my test bank and then come back on here for quizzing towards the end of the week. I wanted to quiz again on Tuesday/Wednesday, but I still have to find time to work the SIMS. 🙁

[Ninja Juice]

@wannabe what is the answer..17,500?

[WANNABE_CPA]

@ninjajuice…Its B 18500

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

[WANNABE_CPA]

On June 30, 2013, Berk retired from his partnership. At that time, his basis was $80,000, which included his share of the partnership's liabilities of $30,000. Berk's retirement payments consisted of being relieved of his share of the partnership liabilities and receipt of cash payments of $5,000 per month for 18 months, commencing July 1, 2013. Assuming that Berk makes no election with regard to the recognition of gain from the retirement payments, he should report income of:

A.

$13,333 in 2013 and $26,667 in 2014.

B.

$20,000 in 2013 and $20,000 in 2014.

C.

$40,000 in 2013.

D.

$40,000 in 2014.

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

[Anonymous]

C–$40K in 2013

[WANNABE_CPA]

@mama…its D.$40K 2014

When a partner retires from a partnership, all debt relief and cash payments are first treated as a return of capital and then capital gains.

Since the debt relief and cash payments in 2013 total $60,000 and Berk's basis was $80,000, no gain is reported in 2013.

2013: $80,000 basis – $60,000 debt relief and cash payment

= $20,000 remaining basis

2014: $20,000 basis – $60,000 cash payment

= $40,000 gain in 2014

Berk's capital account before retirement:

Capital account $50,000

Share of liabilities 30,000

---

Berk's basis $80,000

Berk's retirement payment in 2013:

Relief of all liabilities in 2013 – 30,000

---

$50,000

6 months x $5,000 in 2013 – 30,000

---

Capital basis at 12/31/13 $20,000

Beck's retirement payment in 2014:

12 months x $5,000 in 2014 – 60,000

---

Capital gain in 2014 $40,000

========

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

[Anonymous]

Makes sense. Thanks for the explanation!

[WANNABE_CPA]

Another good to know question:

Terrell has a 60% interest in the capital and profits of Bronco Partnership. He also owns a 65% interest in the capital and profits of STI Partnership. On March 2, 2014, Bronco Partnership sold land to STI for $35,000. At the time of the sale, the land had an adjusted basis to Bronco of $40,000. What is the amount of loss that Bronco can recognize in 2014?

A.

$6,500

B.

$5,000

C.

$3,250

D.

$0

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

[Anonymous]

D

[WANNABE_CPA]

D is correct..

Losses are not allowed from a sale or exchange of property (other than an interest in the partnership) directly or indirectly between a partnership and a person whose direct or indirect interest in the capital or profits of the partnership is more than 50%. Terrell owns more than 50% interest in both partnerships. His basis in the partnership will be reduced by the amount of loss. When the property is sold, any gain will not be recognized up to the amount of the loss not allowed. In other words, the subsequent gain is reduced by the previously disallowed loss. The basis in the partnership will be increased by any gain not recognized.

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

[WANNABE_CPA]

Natalie inherited land from her Uncle Josh, who died January 3, 2014. The basis to Josh was $1,000,000 and the value on January 3, 2014, was $7,200,000. On July 3, 2014, the value was $7,600,000. When the land was distributed to Natalie on June 3, 2014, the value was $7,400,000. This land was Josh's entire estate. Natalie's basis for the estate is:

A.

$1,000,000.

B.

$7,200,000.

C.

$7,400,000.

D.

$7,600,000.

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

[WANNABE_CPA]

During 2014, Yeats transferred property worth $20,000 to a trust with the income to be paid to her 22-year-old niece Jane. After Jane reaches the age of 30, the remainder interest is to be distributed to Yeats' brother. The income interest is valued at $9,700 and the remainder interest at $10,300.

The remainder interest is:

A.

a gift of present interest.

B.

a gift of a future interest.

C.

not a completed gift.

D.

not a gift.

Won't this be an Incomplete gift as well, so what do we choose? B or C ?

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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