[jeff]

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

[WANNABE_CPA]

D is correct

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

[pia ach]

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 is Paul's stock basis at the end of the year?

A.1,000

B.2,000

C.11,000

D.12,000

Getting stuck on this one, please explain

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

[WANNABE_CPA]

Which of the following must take place for a corporation to be voluntarily dissolved?

A.

Passage by the board of directors of a resolution to dissolve

B.

Approval by the officers of a resolution to dissolve

C.

Amendment of the certificate of incorporation

D.

Unanimous vote of the stockholders

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

[MommyBear]

A?

[CPAfit]

@pia C. $11,000

@wanna D. Unanimous vote of the stockholders

[pia ach]

@zubairs yes it is 11k, can you please explain.

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

[WANNABE_CPA]

A is correct.

Voluntary dissolution of a corporation occurs when the board of directors passes a dissolution resolution. The officers do not have the authority to dissolve a corporation—only the board of directors does. Amending a certificate of incorporation will not result in the dissolution of the corporation. The stockholders may vote on dissolution, but unanimous consent is not required.

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

[CPAfit]

@pia they had accumulated E & P of $10,000 and they made distribution's of $19,000.

So the the distribution of up to $10,000 to shareholders will be their divided income. The rest of the $9,000 will reduce their basis in stock thus resulting in a reduced basis of $ 11,000. $20,000-$9,000=$11,000

[WANNABE_CPA]

What term is used to describe a partnership without a specified duration?

A.

A perpetual partnership

B.

A partnership by estoppel

C.

An indefinite partnership

D.

A partnership at will

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

[Anonymous]

Pia, actually no. So for a liquidation your basis is automatically going to go to zero. So if you had a basis of 10, and the distribution was 8, there would be a loss of 2. If your basis was 10 and the distribution was 12, there would be a gain of 2. This is a bit confusing so try looking over it a few times. This only goes for cash though, and not land. For any property it is just going to be zero no gains or losses.

[CPAfit]

@wanna C

[WANNABE_CPA]

D is correct

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

[pia ach]

Thanks @Zubair @cpahopeful…it is so confusing will go through those basis questions again.

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

[pia ach]

anyone else had problem signing into the forum? i had to finally reset my password.

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

[MAGGIE1234]

On July 1, Silk, Inc., sent Blue a telegram offering to sell Blue a building for $80,000. In the telegram, Silk stated that it would give Blue 30 days to accept the offer. On July 15, Blue sent Silk a telegram that included the following statement: “The price for your building seems too high. Would you consider taking $75,000?” This telegram was received by Silk on July 16. On July 19, Tint made an offer to Silk to purchase the building for $82,000. Upon learning of Tint’s offer, Blue, on July 27, sent Silk a signed letter agreeing to purchase the building for $80,000. This letter was received by Silk on July 29. However, Silk now refuses to sell Blue the building. If Blue commences an action against Silk for breach of contract, Blue will:

A.

win, because Blue effectively accepted Silk’s offer of July 1.

B.

win, because Silk was obligated to keep the offer open for the 30-day period.

C.

lose, because Blue sent the July 15 telegram.

D.

lose, because Blue used an unauthorized means of communication.

Correct: A

To create a contract, the offer must be accepted before a termination of the contract. A counteroffer is a rejection of the original offer followed by a new offer. Since Silk accepted the new offer, the counteroffer is a new contract.

I am not sure if I have missed anything, but as far as I can see in the question, there isn't(is there???) any implication for Silk's acceptance of the counteroffer…Also, if Blue has made a counteroffer, which should be a rejection against and termination of the original contract, how can Blue accept that original offer later? Really confused!!!

Would really appreciate if anyone could point out my mistakes…

AUD - 69,95
BEC - 86
FAR - 82
REG - 56,82

I finally made it!!!!!Thank YOU!!!!!!!!

[Author]

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