[jeff]

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

[Mamabear]

Shouldn't the formula start with his beginning basis?

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]

We can move on. I don't want to confuse anything.

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]

do u understand why 140000 in my question is Ordinary income and 4000 capital gain ?

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

[Anonymous]

I think the liability add/subtract from that question is because Carr takes over the other partner's liabilities. So, his basis and the partnership's basis would decrease (which would both decrease and increase his basis).

[Mamabear]

@bucky–OK I get that now. Thanks!

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]

just making sure you guys know this…$140000 is considered hot aseet as it is a part of unrealized receivables…420000/3.

Hot assets are: Unrealized Receivables, Appreciated inventory and Recapture income

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

[Mamabear]

And hot assets are what constitutes ordinary income? So really, since the question asked about ordinary income all we needed to know is the Unrealized receivables/3, but if they had asked about the gain we would have had to do all that other stuff in the calculation?

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]

yup 🙂

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

[Tax lady]

I still get 140k. Not 144K.

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

[Mamabear]

Lyon, a cash basis taxpayer, died on 01/15/13. In 2013, the estate executor made the required periodic distribution of $9K from estate income to Lyon's sole heir. The following pertains to the estate's income and disbursements in 2013:

2013 Estate Income= $20K of taxable interest and $10K of net long-term capital gains allocable to corpus

2013 Estate Distributions=$5K Administrative expenses attributable to taxable income

For the 2013 calendar year, what was the estate's DNI?

A $15K

B $20K

C $25K

D $30K

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]

If property contributed to a partnership is distributed to a partner other than the contributing partner within seven years of its contribution to the partnership, all of the following will apply except:

A.

the contributing partner will be required to recognize the built-in gain or loss at the time of the disqualified distribution.

B.

gain or loss is calculated as if the property was sold for the lesser of its basis or FMV at the date of distribution.

C.

the contributing partner's gain recognized is limited to the gain that would be recognized by the partnership.

D.

the basis in the property and partnership interests will be adjusted for the gain or loss recognized.

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

[Anonymous]

@Mamabear – C

[Tax lady]

@mama A

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

[Mamabear]

I guess A for my question and C for wannabe's question

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?

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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