[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]

WOW. That question is tough! Anyone can simplify that explanation??

BEC- PASS

[A1lessio]

I have a feeling this will show up as a SIM on Monday.

I have one question. Why is tax-exempt interest added back as $24,025 and not $25,000?

AUD (08/02/2016)

[mtaylo24]

@A1lessio, Unfortunately, I don't think I'll be doing much studying until Sunday night! You have to subtract the 975 commission allocable to principal from the 25,000 to get 24,025.

@Spartans92, basically just do 75% of the commissions and subtract the principal from the interest towards the end.

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]

That question is driving me nuts. Im still somewhat lost, just hoping I won't see something that complexed but if I do hopefully its worth more points towards the 75! I guess sometimes I'll think that questions may seem too easy to be true and go with something closer. LOL.

Guess that is all for the day. Last full day of studying for me this weekend and won't be studying much on monday and tuesday due to work :/ may the odds be in our favor!

BEC- PASS

[mtaylo24]

During 2015, Sadie made the following transfers:

-She deeded her personal residence to her daughter and herself to be held in joint tenancy. The fair market value of the residence at the time of transfer was $150,000.

-She placed a $30,000 bank account in joint tenancy with her daughter. Neither she nor her daughter made any withdrawals in 2015.

-She placed a $20,000 bank account in joint tenancy with her daughter. During 2015, Sadie withdrew $2,000, and her daughter withdrew $5,000 from the account.

-She bought $10,000 in U.S. savings bonds registered as payable to herself or her daughter. Neither she nor her daughter cashed any of the bonds during 2015.

What is the gross amount of gifts given by Sadie in 2015?

A. $105,000
B. $90,000
C. $80,000
D. $5,000

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)

[A1lessio]

Spartans92 – I plan to do a solid 8-10 hours today. Getting a 72 on the Becker practice exam gives me some confidence that I can pass. I got the same score on the audit practice exam and ended up getting an 86 on Actual. I did 28 problems on estates and trusts last night and not one of them was as hard as the one posted.

Mtaylo24- D) $5,000 ?

AUD (08/02/2016)

[mtaylo24]

@A1lessio, the correct answer is c. You have to account for 1/2 of the property (75k) and the (5k) withdrawn by her daughter to get 80k.

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)

[A1lessio]

gotcha – wasn't sure about the property.

AUD (08/02/2016)

[A1lessio]

if anyone runs into wash sale questions please post!

AUD (08/02/2016)

[Susarino]

Just joining the thread for this round (wow 45 pages). I'll be making my fourth (and hopefully final) attempt on Oct 30. I'm up against an expiration.

Never give up!

FAR – 74, 75 5/2015
AUD – 55, 75 2/2016 (thanks to NINJA)
BEC – 71,69,71,72,72,75 7/2016
REG – 39 (before NINJA), 67, 66……

[mtaylo24]

Sand purchased 100 shares of Eastern Corp. stock for $18,000 on April 1 of the prior year. On February 1 of the current year, Sand sold 50 shares of Eastern for $7,000. Fifteen days later, Sand purchased 25 shares of Eastern for $3,750. What is the amount of Sand’s recognized gain or loss?

A. $0
B. $500
C. $1,000
D. $2,000

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]

I hope it's C. 1000.
The basis in the 25 shares would then be 4750 I believe.

BEC- PASS

[A1lessio]

I'm gonna go with (c). 25 of the 50 shares sold are dis-allowed.

AUD (08/02/2016)

[mtaylo24]

@Spartans92 Correct! Only recognize gain on 25 shares

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]

AWESOME!!! God Bless everyone one of us studying this Quarter!!

BEC- PASS

[Author]

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