[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]

@jp

Is it C? Fraud in the inducement is a personal defense

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

[jpowell31]

that's what i put but now i remember wrong and i got confused with the later transfer…. it's B because Morton didn't know AT THE TIME he purchased it. only after. trent however would be a holder via shelter provisions

[jonm857]

I really hope there aren't a lot of those on the test. I hate those.

With a passion.

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

[jpowell31]

i feel like all this stuff is actually clicking…nailing these questions which is giving me a good boost even though i feel like crap and just want to go pretend this vacation day is actually for vacation. but that one did trip me up. i think also because the same question but reference to trent came up last night and i just didn't read the question.
CERCLA vs. EPA keep tripping me up though, i need to write a quick summary of them. such useless information

[Reg_Slayer]

EDIT:

MACRS:

PERSONAL PROPERTY:
-use “Half-Year Convention”
but
-use “Mid-Quarter Convention” if 40%+ into service during the last quarter

REAL PROPERTY:
-use mid-month

[jpowell31]

those conventions are both for personal property. generally use half-year convention unless 40% or more of the personal property put into service during the year was placed in service during the last quarter.

with real property use mid-month

[jpowell31]

isn't this question wrong or the explanation contradicting:

Pulse Corp. maintained a warehouse where it stored its manufactured goods. Pulse received an order from Star. Shortly after Pulse identified the goods to be shipped to Star, but before moving them to the loading dock, a fire destroyed the warehouse and its contents. With respect to the goods, which of the following statements is correct?
A. Pulse has title but no insurable interest.
B. Star has title and an insurable interest.
Correct C. Pulse has title and an insurable interest.
D. Star has title but no insurable interest.

Title passes from the seller to the buyer only if the goods are identified in the sales contract. A buyer has an insurable interest from the time the goods are identified in the contract.

[jpowell31]

edit – i tried to post this like an hour ago….

[jonm857]

No “ribs” allowed under Ch. 7 bankruptcy

Railroads
Insurance companies
Banks
Savings institutions and small business investment companies

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

[jpowell31]

and they're allowed under Chap 11 but not stockbrokers…

[jonm857]

From that list, I think only railroads are allowed under Ch. 11.

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

[jpowell31]

true!

[jonm857]

So you can deduct mortgage interest on two homes, correct?

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

[jonm857]

The difference b/w unreimbursed business expenses vs. reimbursed business expenses…

If reimbursed, the taxpayer may still deduct the expense, but must include the reimbursements in his gross income.

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

[Reg_Slayer]

Combine
into service cost life sect 179 MACRS basis MACRS depreciation
January 1, Year 1 $60,000 7 years x1=$25,000 x1?=35,000✓ x1?= 3,749✓
x2=0 x2?= 6,696✓
*use half-yr convention
*MACRS FACTORS: X1: 10.71%, X2: 19.13%

[Author]

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