[jeff]

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

[Mamabear]

A CPA may be held criminally laible under any of the following, except:

A Securities Act of 1933

B. Common Law

C. Federal Tax laws

D. RICO (Rackateer Influences and Corrupt Organizations)

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[WANNABE_CPA]

A? I think SEC can just charge Civil penalty

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

[WANNABE_CPA]

@mambear i am going to start C corporation, Property and Partnership Mcqs from Ninja and becker..I am going post few from there soon…taking a break to eat…be right back..Its 5:15pm and its already dark outside 🙁

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

[Mamabear]

B. Common Law can only result in civil liability, not criminal. Sounds good. It's 8:15 over here and been dark for hours. 🙂 I need to practice any tax questions you've got. I've been picking short questions because I'm pulling them from the book. Less to type. 🙂 I haven't started in my testbank yet so I can't copy/paste. I'll be here for 2-3 more hours.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[WANNABE_CPA]

Jim Nix gave a parcel of land to his niece, Jane. Jim had paid $15,000 for the land and the value on the date of the gift was $12,000. Jim paid a gift tax of $1,000 on the transfer to Jane. Subsequently, Jane sold the land for $10,000. Jane's basis for computing the loss is:

A.

$15,000.

B.

$13,000.

C.

$12,250.

D.

$12,000.

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

[Mamabear]

D? Using the same theory as before. FMV is less than original owner's basis so less loss recognized.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[WANNABE_CPA]

Yes correct..I remember it as sold for amount less than FMV, therefore FMV and selling price used to calculate loss.

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

[WANNABE_CPA]

Dove Corp. began operating a hardware store in the current year after constructing a building at a total cost of $100,000 on land previously acquired for $50,000. In the current year, the land had a fair market value of $60,000. Dove paid real estate taxes of $5,000 in the current year. What is the total depreciable basis of Dove's business property?

A.

$100,000

B.

$150,000

C.

$155,000

D.

$160,000

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

[Mamabear]

I think it's $155K. I waffled back and forth about whether or not to include the taxes.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[WANNABE_CPA]

Ans is A.. Explanation:

Dove Corp. began operating a hardware store in the current year after constructing a building at a total cost of $100,000 on land previously acquired for $50,000. The current fair market value of the land is irrelevant. Clearly, the land is not depreciable.

Dove Corp. also paid real estate taxes of $5,000. If they were paid during construction of the building, they would be capitalized as part of the construction cost for tax purposes. However, in this question we have two clues that this is not the intended result. First, the problem states the amount of “total” construction cost. Second, the answers do not give you the option of capitalizing the property taxes. Sometimes it is a process of elimination.

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

[WANNABE_CPA]

i am getting all questions wrong…getting disappointed 🙁

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

[Mamabear]

Damn. The land was gimme. RTMFQ Mamabear! 🙂

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Mamabear]

In 2013 Ruth Lee sold a painting for $25K that she had bought for her personal use in 2007 at a cost of $10K. In her 2013 return, Lee should treat the sale of the painting as a transaction resulting in

A. ordinary Income

B. Long-term CG

C. Section 1231 Gain

D. No taxable gain

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[WANNABE_CPA]

It is not Long term CG or 1231 gain,

A?

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

[WANNABE_CPA]

Dahl Corp. was organized and commenced operations in Year 0. At December 31, Year 5, Dahl had accumulated earnings and profits of $9,000 before dividend declaration and distribution. On Decem­ber 31, Year 5, Dahl distributed cash of $9,000 and a vacant parcel of land to Green, Dahl’s only stockholder. At the date of distribution, the land had a basis of $5,000 and a fair market value of $40,000. What was Green’s taxable dividend income in Year 5 from these distributions?

A.

$9,000

B.

$14,000

C.

$44,000

D.

$49,000

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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