[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/

[Anonymous]

Correct!!!

[REGTaker]

Is this helping you? I feel like you're helping me more than I am helping you.

[Anonymous]

NO way. This is helping me a ton. I'm re-reading this stuff and seeing what I did wrong.

West purchased a painting from Noll, who is not in the business of selling art. West is picking up the painting from Noll. Noll tendered delivery of the painting after receiving payment in full from West. West informed Noll that West would be unable to take possession of the painting until later that day. Thieves stole the painting before West returned.

The risk of loss

A. Remained with Noll, because West had not yet received the painting.

B. Remained with Noll, because the parties agreed on a later time of delivery.

C. Passed to West at the time the contract was formed and payment was made.

D. Passed to West on Noll's tender of delivery.

[REGTaker]

D

[Anonymous]

Correct again!

[Anonymous]

The Federal Unemployment Tax Act (FUTA)

A. Requires both the employer and employee to pay FUTA taxes, although the amounts to be paid by each are different.

B. Does not apply to businesses with fewer than 35 employees.

C. Does not apply to employers that conduct business only in one state and employ only residents of that state.

D. Allows the employer to take a credit against the FUTA tax if contributions are made to a state unemployment fund.

[REGTaker]

I hate the word “tender” by the way. It always sounds like payment so “tendered delivery” makes no sense to me.

[REGTaker]

By process of elimination, I am going with D.

[Anonymous]

That is correct!

[REGTaker]

Do you understand why the others were wrong?

[Anonymous]

That's all my incorrect questions. I totally messed up on my Corp AMT SIM and an Individual tax SIM.

[REGTaker]

Well I think we have already established that you missed a few of those from not reading the question fully/getting the names mixed up and you aren't going to do that on the test so you can raise your score a few points for that. I think the others are just things you haven't seen in a while and needed a refresher.

[Anonymous]

Anything else you want to work on?

[REGTaker]

I have no idea. Whatever you want to work on is fine with me. I was worried I had forgotten basis because I hadn't done those in a while, but they came back to me and I only missed the one about the guaranteed payment. I just want to stay fresh so anything is fine with me.

[Anonymous]

On May 2, Lace Corp., an appliance wholesaler, offered to sell appliances worth $3,000 to Parco, Inc., a household appliances retailer. The offer was signed by Lace's president, and provided that it would not be withdrawn before June 1. It also included the shipping terms: “FOB — Parco's warehouse.” On May 29, Parco mailed an acceptance of Lace's offer. Lace received the acceptance June 2.

Risk of loss for the appliances will pass to Parco when they are

A. Identified to the contract.

B. Shipped by Lace.

C. Tendered at Parco's warehouse.

D. Accepted by Parco.

[Author]

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