[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

[Anonymous]

Bucky thanks, when is your test?

[Anonymous]

So I went to my car to take a nap at lunch and apparently I slept through a monsoon from a tornado warning. Crazy!!!

Didn't wake up at all…

[Anonymous]

11/29 – I was feeling ok until this weekend, but now I'm starting to freak out. When is your test?

[WANNABE_CPA]

There are two scenarios in a simulation on C corp and i am getting little confused, it is Ninja Sim 60:

Preliminary Income Additional tax return items

1.$200,000 $10,000 of charitable contributions, and $20,000 of dividends from less-than-20%-owned

domestic corporations

2.$250,000 $40,000 of dividends received from a 45%-owned domestic corporation

What is the Line 30 Taxable Income(Loss)?

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

[Anonymous]

$250,000 $40,000 of dividends received from a 45%-owned domestic corporation

Wouldn't it be $250K + $40K – $32K = $258K

[SullivanNJD]

@wannabe

I am not sure if this is correct, but this is how I would assume to calculate the answers

1.)

200,000 + 20,000 dividend =220,000 gross income

LESS: The full 10,000 charity deduction (corps can deduct up to 10% AGI)

LESS: 70% of the dividend because it is less than 20% owned (14,000)

Total: 196,000

2.)

250,000 + 40,000 dividend income = 290,000 gross income

LESS: 80% of the dividend because it is between 20 and 80% owned (32,000)

Total: 258,000

FAR- 87
REG- 81
AUD- 88
BEC-

Who's Better Than Us? nobody

[WANNABE_CPA]

@cpamommy…One thing i need to know : does fhe preliminary income mentioned includes the dividends received or it has to be added first, as for i know dividends are added before any deduction, and in the solution, they are not adding dividends before deductions in 1st scenario and adding in 2nd ?

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

[Anonymous]

@Wannabe – I have CPAExcel, but I was just looking at that SIM in my stuff –

1. is $196,000 – All the char. contributions are allowed ($220k AGI x 10% = $22k) and the DRD is $14k ($20k x .7) = 200+20-10-14

2. is $258,000 – the DRD is $32k ($40k x .8) = 250+40-32

[Anonymous]

I pulled up the SIM and it says, “The first column of the table lists preliminary taxable income excluding additional tax return items shown in the next column” so I would assume that those additional items aren't part of the first number at all.

[WANNABE_CPA]

@cpamommy and Sullivan….thanks i get it now, so they are definitely messing up for the first one answer comes out the same but they are subtracting CC first and then adding dividends received…

I am going to stick with adding dividends and then going for deductions as mentioned..

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

[Anonymous]

30th, I'm not ready at all. I have BEC on the 20th but after that will go hard until the 30th.

[WANNABE_CPA]

Which of the following statements is incorrect

A.

All recourse debt of the partnership is allocated to the partners in calculating the tax basis of their partnership investment.

B.

A limited partner is allowed to increase partnership basis for their share of recourse debt if they share in partnership losses.

C.

A general partner is allowed to increase partnership basis by his or her share of all recourse debt.

D.

A general partner is not allowed to increase partnership basis by his or her share of all recourse debt.

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

[taxgeek83]

@Wanna – Well, it has to be C or D – I'm going with D.

[Anonymous]

@Wannabe – B – Limited partners should not be allocated recourse debt.

[WANNABE_CPA]

Ans is D

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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