[jeff]

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

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

[WANNABE_CPA]

One of the criteria for a valid assignment of a sales contract to a third party is that the assignment must:

a.Be in writing and signed by assignor.

b.Not materially increase the other party's risk or duty.

c.Be supported by adequate consideration from the assignee.

d.Not be revocable by the assignor.

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

[Anonymous]

Does anyone know the difference between personal service companies vs personal service corporations vs small business investment company?

Came across a Becker question, and they said the first 2 aren't entitled to DRD, whereas the small business investment company is entitled to 100% deduction of dividend.

[Anonymous]

Does anyone know the difference between personal service companies vs personal service corporations vs small business investment company?

Came across a Becker question, and they said the first 2 aren't entitled to DRD, whereas the small business investment company is entitled to 100% deduction of dividend.

[Anonymous]

Please, I need help to understand this question…

Hark, CPA, failed to follow generally accepted auditing standards in auditing Long Corp.'s financial statements. Long's management had told Hark that the audited statements would be submitted to several banks to obtain financing. Relying on the statements, Third Bank gave Long a loan. Long defaulted on the loan. In a jurisdiction applying the Ultramares decision, if Third sues Hark, Hark will:

A. CORRECT

win because there was no privity of contract between Hark and Third.

Incorrect B.

lose because Hark knew that banks would be relying on the financial statements.

C.

win because Third was contributorily negligent in granting the loan.

D.

lose because Hark was negligent in performing the audit.

Why is A and no B?? As per my understanding when Ultramares is applied, privity is not a defense for the account.

[Anonymous]

@ wannabe_ CPA.. I think that the correct answer is B.

[Tax lady]

@boric. Ultramares is when the accountant is only liable to those he is in privity of contract with. He's not in privity with Third, only Long. B is incorrect because he was not in privity with the banks. That choice would be correct under the Restatement view.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Tax lady]

@Wannabe I agree the answer should be B

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Anonymous]

Can someone clarify a c-corps basis when property is contributed at formation –

FMV: 120,000

Liability associated with property: 60,000

Basis: 100,000

Cash contributed: 0

Cash distributed to SH: 10,000

Answer: 110,000

I thought it was the greater of debt assumed (60K), or NBV + Gain recognized by SH (100,000+20,000)

Beckers explanation is that it's the NBV, since it's not taxable, and they paid $10,000 cash to complete the transfer.

Does the rule of 80% control, and no boot received affect the C-corp's basis? Here, $10,000 is received by the shareholder, which would make it a taxable event? Confused, please help!

[WANNABE_CPA]

Answer is B .

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

[leglock]

Fmv is greater than nbvso there is a gain realized so if u recd cash then u will recognize the boot recd up to gain realized. So in this problem u will recognize 10000 recd and ur basis was 100000 so that totals 110,000. basis of c corp is nbv plus gsin recognized

[WANNABE_CPA]

Howz studying everyone?

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

[SomedayCPA2015]

Wannabe_CPA I've finally made it through the Business Law chapters, and have moved on to Tax. Thank goodness! Those were brutal for me. I'm worried I am going to forget it all, so I'm glad my study plan is allowing 2 weeks for review. Whenever I'm working through MCQ's I feel tempted to move my exam forward in fear of forgetting everything, but I do not want to be rushed. I'm also sitting for it 11/26. How is your studying going?

REG - Passed
BEC - Passed
AUD - Passed
FAR - Passed!!!! I have my life back.

[WANNABE_CPA]

@somedayCPA… thats good you are atleast done with one part, i am just going back and forth with BLAW and TAX as i cant handle tax for too long, i am doing atleast one Blaw topic with Tax topic..Right now, Still doing Individual tax and half way with Becker and Ninja mcqs for Contracts.I think studying is catching up now since i already postponed to 26th from 12th nov, so i have no choice to postpone any further.

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

[Anonymous]

Can somebody clarify how to calculate MACRS depreciation if the asset was disposed of that year?

becker sim:

purchased a computer (5 yr) in March year 1, use half year convention. disposed it in year 3 during Feb. 19.2 is the amount in the table, but they divided this in half and used that percentage.

What's the rule in dividing it in half?

[ronster]

I took REG last Friday which was my second attempt. I failed REG in August by 2 miserable points. Last time I was very confident with the multiple choice but shocked with the SIMS. This time around the multiple choice was shockingly harder. Each testlet got worse and worse and I'm not sure if it's a matter of me being dumb or doing better. The SIMS were pretty hard, slightly less awful than the first go but I had one SIM that I didn't even know where to begin. I really don't want a third go at this which then I'll have Audit to lose if I don't pass it by next Feb.

AUD: PASS
FAR: PASS
BEC: PASS
REG: PASS

[Author]

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