[Anonymous]

Hi everyone,

I sit for REG tomorrow and I wanted to make I was clear on the SIMS in the AICPA Sample Exam so I will post my explanations in this thread to help anyone interested and see if I’m on point.

I’m going to skip the first SIM, the Research SIM, and the DRS. The first SIM is straightforward, the research SIM is clear from the answer, and there is a really good Roger video explaining the DRS online. Also, Gleim has the DRS in their REG SIM bank in SU 11 I believe.

[chandler]

@Chuqiao, half-year is already taken into account in the 20% MARCS figure. 5 and 7 year MACRS are 200% declining, so if you were taking a full-year of depreciation, you would use 40% instead. The first year, it's automatically a half-year of depreciation, so that's why it's figured into the %.

[CHUQIAO WANG]

Thank you~! So only 1yr is auto take account the half year? At Yr 2, it does divided by 2, which I assume for the year after 1 year, it does not auto take half year so when sold the PPE, needs to divided by 2?

[Author]

Replies