[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for REG.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

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

[jonm857]

My favorite was Olinto's mnemonic from BEC… “EBOCA”. That was a funny lecture

B - 81
A - 87
R - 73
F - July 5th

[jonm857]

Warehouse receipts. Gotta love em!

B - 81
A - 87
R - 73
F - July 5th

[aatoural]

Mintee Corp., an accrual-basis calendar-year C corporation, had no corporate shareholders when it liquidated in Year 1. In cancellation of all their Mintee stock, each Mintee shareholder received in Year 1 a liquidating distribution of $2,000 cash and land with tax basis of $5,000 and a fair market value of $10,500. Before the distribution, each shareholder's tax basis in Mintee stock was $6,500. What amount of gain should each Mintee shareholder recognize on the liquidating distribution?
a.$4,000
b.$0
c.$6,000 CORRECT
d.$500
Just clarification because Becker did not do the math. Does that mean that the total assets received is 10,500 + 2,000 = 12,500 – 6,500 = 6,000?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[jonm857]

I just found a major glitch in Becker's warehouse receipts MCQs.

– – – – – – – – –

Under the UCC, a bill of lading:

a. Will never be enforceable if altered.
b. Is negotiable if the goods are to be delivered to bearer.
c. Will never be negotiable unless it is endorsed.
d. Is issued by a consignee of goods.
e. NOBODY F*(KING CARES!

Correct answer, e. Because nobody f*(king cares.

B - 81
A - 87
R - 73
F - July 5th

[jonm857]

@aatoural

I remember that problem……. I will have to look at the one later, but I think you're right.

B - 81
A - 87
R - 73
F - July 5th

[Reg_Slayer]

@jon

i get b, Bill of lading Is negotiable if the goods are to be delivered to bearer.

[jpowell31]

yep i think of it this way though: 6500 – 10,500- 2000 = -6000 = because each gets an additional 6000 beyond their basis, they recognize it as a gain.

hahaha i get that answer for about 70% of questions on all 4 sections of this exam. but i'd agree it's B?

[jonm857]

@reg_slayer

Correcto-mundo

B - 81
A - 87
R - 73
F - July 5th

[jonm857]

What are you guys working on right now? I am going through the text in Ch 7 and taking notes as I read.

B - 81
A - 87
R - 73
F - July 5th

[jonm857]

So when there is a qualified endorsement (“without recourse”) on the back of a note, the endorser has no contract liability. But the endorser is still liable on warranties.

Can somebody help me understand what is meant by warranties here?

B - 81
A - 87
R - 73
F - July 5th

[Reg_Slayer]

@jon

im doing r5 fk Business Law.

[A1lessio]

just did a 30 question progress test on R1-R8 and got 90%! Hopefully I can quickly review before work in the AM.

AUD (08/02/2016)

[aatoural]

Working on Chapter 3 – C Corps. Taking forever with their MCQs is like I do around 20-30 in an hour.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[jpowell31]

i was fried yesterday so didn't do as much as planned but slept well and am working until 3PM today (with some questions in between i imagine :)). I've done nothing but random questions (nothing in order or directly after studying a section to keep things fresh and avoid memorization on this round 2 battle. i have 500 MCQ left in ninja i plan to get through between today and sunday beefing up my notes still. then i should have about 300 i've marked or gotten wrong that i will do when i go into depth in re-writing my cheat sheets on each section along with SIMs sunday-wed. it's going to be a long weekend! and not the good kind!

@jon – warranties –> while they don't promise to pay if previous endorsers fail to pay, they still warrant that the instrument is being transferred in good faith, that they can enforce the instrument, the signatures are real, it hasn't been altered and that there are no defenses/claim against the transferer.

[jeff]

HIYA!

Surprise! I Passed the REG Dumpster Fire

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

[Author]

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