[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

[Spartans92]

So grateful I purchased Ninja MCQ. I learned something new today on SIMS. Just to share in case others don't know already.. Casualty losses are deductible by 100 per incident. I initially thought it was per item.. need to be careful on that. Good Luck all!

BEC- PASS

[vorobjeva44]

Hi guys,
I starting REG today! Let's see how it will go. This is my second part. Took BEC for a second time yesterday, now just want to forget about it(hope forever) at least till next window and focus on REG. My family members kind of tired of my CPA oriented mood, so I have nobody except you to talk about it, lol 🙂 Just wanted to say HI! 🙂

[Spartans92]

Is there a more effective way to pick out SIMS? I only want to focus on tax sims but I keep getting random ones like blaw/research. Thanks

BEC- PASS

[mtaylo24]

^^^I don't study sims, but found the list

https://www.another71.com/cpa-exam-forum/topic/ninja-mcq-simulations-complete-topic-list-by-sim/

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Spartans92]

Thank you very much!! I find these sims to be super helpful cuz some concepts were never covered in becker. However, IDK how useful they will be for the exam. Nevertheless the more practice the better! The downside is that some of these questions are very vague and require some assumption.

BEC- PASS

[jeff]

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

[Spartans92]

@Jeff, A?

BEC- PASS

[Sali]

Dawson, Inc.'s warehouse (with an adjusted tax basis of $75,000) was destroyed by fire. The following
year, Dawson received insurance proceeds of $195,000 and acquired a new warehouse for $167,000.
Dawson elected to recognize the minimum gain possible. What is Dawson's basis in the new warehouse?
A. $47,000
B. $75,000
C. $139,000
D. $167,000

[NoCoast]

@Spartans92, I believe it is D. The IRS wouldn't conduct a routine review if there was no return to review at all.

FAR: 76
AUD: 75
BEC: 07/16
REG: TBD

[NoCoast]

@Sali, is it A? I am very confident on this one, but I believe you would take the basis of the new warehouse and subtract the gain from the last one? (195-75 = 120), then (167-120 = 47 basis) would like to know what the explanation is whether I am right or wrong on this one lol.

FAR: 76
AUD: 75
BEC: 07/16
REG: TBD

[Spartans92]

@Sali, Geez I remember seeing this question. I'll try my best at explaining. This is involuntary conversion. Adj. Basis is 75k Proceeds is 195k. So 195-75 = 120 Amount realized. However, he only spent 167 of the total 195. As Gearty says, loot = boot, whatever isn't spent is considered money you kept which is taxable. Hence, 195-167 = 28k extra is taxable gain recognized. Realized is 120 but we recognized 28. So 92k is deferred.

To find the new basis then we take the FMV (cost of new warehouse) 167k – 92K def. gain = 75k. Answer B?

BEC- PASS

[Spartans92]

@nocoast, Dang I wasn't sure haha. Tried process of elimination and literally was down to A or D and I thought A made more sense. The wording of the question throws me off I guess. Since it is asking the IRS would look for all the following, except what.. So I thought it must be fail to include 1099 since they do look at accuracy, signature, etc.

BEC- PASS

[Sali]

Correct!

[Sali]

@NoCoast answer is 75,000

[vorobjeva44]

Guys, is Becker review and Ninja Mch enough for passing REG? Thank you!

[Author]

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