[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[Mary 2496]

For anyone using Becker, did you know that when you're in Becker software, you can click on the Options tab (behind to-do, where all the announcements are), and it gives you the newest released AICPA exam questions for each section, that you can then download separately? I never knew this. I just discovered it. I feel like an idiot, that I've been using their software and never thought to look on that tab.

[rzrbkfaith]

@Mary – I do the online class and they automatically upload to your course. They came out in the middle of studying for BEC and at the end of my audit promise period and I had to make sure I had at least 90% completed in all my sections because it had reduced some of my completion percentages. That stunk.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Anonymous]

THANKS Mary!! I never knew that 🙂 I wonder if they will ever reuse those questions again since they have been released? Also, have you ever thought about supplementing Becker with Ninja?

[Mary 2496]

It reduced my completion percentages too – I didn't realize that you could download just the newly released ones separately, as well, to study from. I know what you mean. I went from having 100% complete to having around 96% complete in a few of the different areas. I just didn't realize I could download the new ones and print them out to study from.

[Mary 2496]

@ aspiring – I am actually looking into NINJA as we speak. 🙂

As far as them using the questions, I will say that in the released questions for auditing (haven't checked the other sections yet), I see a lot of similarities so I think many questions could be along the same lines as the exam questions. Sorry – trying to word this to stay in line with forum rules! Hope I'm doing okay with that in this answer!

[Anonymous]

I'm using ninja…I got up to R3 and decided if I continued to follow becker I wouldn't finish in time of my exam date. So decided to switch to ninja to maximize my studies because it pulls questions for all topics and has the adaptive learning function. I hope it pays off 🙂 and I love the blitz videos it summarizes everything up in short videos-it really helped me learn topics better-short and to the point! Definitely invest in them now so you can get the most benefits before your exam (ninja mcq since blitz is free till 10/15 with the mcq).

[Mary 2496]

Anyone else studying REG allll weekend long? So … what are you doing to prepare for REG? I am trying to hammer out two areas that I am weak in, mainly through sims. Anyone else on REG with me for many hours of study this weekend?

[Anonymous]

Which of the following statements is correct concerning liability when a partner in a general partnership commits a tort while engaged in partnership business?

Incorrect A.

The partner committing the tort is the only party liable.

B.

The partnership is the only party liable.

C.

Each partner is jointly and severally liable.

D.

Each partner is liable to pay an equal share of any judgment.

You answered A. The correct answer is C.

When one general partner commits a tort while engaged in the course and scope of the business of the partnership, each partner is jointly and severally liable to the injured party. This means that any one of the partners could be held liable for the full amount of the obligation if the partnership fails to pay the debt.

Since the general partnership is not a legal entity separate and distinct from the partners regarding legal liability, the partnership cannot be held legally liable.

I'm confused about this question and about the last sentence…

[Anonymous]

Dunn received 100 shares of stock as a gift from Dunn's grandparent. The stock cost Dunn's grandparent $32,000 and it was worth $27,000 at the time of the transfer to Dunn. Dunn sold the stock for $29,000. What amount of gain or loss should Dunn report from the sale of the stock?

A.

$0

Incorrect B.

$2,000 gain

C.

$3,000 gain

D.

$3,000 loss

You answered B. The correct answer is A.

Because of the special situation in this gift, neither a gain nor a loss can be computed on the sale of this stock received as a gift. In this situation, the selling price is less than the basis for gain and more than the basis for loss.

So its no gain or loss if the selling price is BETWEEN basis and fmv at time of transfer? correct

[Mary 2496]

That's how I understand it. If it's in-between, I always pick zero and it always seems to be the right answer.

[rzrbkfaith]

@asipiringcpa – To answer your first question, in a general partnership, the partners are all at risk and liable for anything that happens in the course of business. For example, a creditor could go after one of the partners to pay when the partnership fails to pay. In the same way, if one of the partners commits a breach of contract or is negligent, then all of the partners could be held liable. In a limited partnership, liability is limited.

Second question, if a person gives a gift, and their basis in the gift is lower than the FMV at the date of the gift, then the person receiving the gift's basis is undetermined until the gift is sold. If the gift is sold for less than the gifter's basis, then the gifter's basis is used, therefore making the loss lower. If the gift is sold for an amount between the gifter's basis and FMV on the date of the gift, then the gain/loss is zero. If the gift is sold for more than the FMV on the date of the gift, the basis is the FMV on the date of the gift, therefore making the gain lower than if the gifter's basis was used. Now, all that being said, if the FMV on the date of the gift is LOWER than the gifter's basis, the gifter's basis is the recipient's basis.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[MattyMags49]

Sally Markey, who owns a heavy construction company, decided to spend some of her $2,000,000 2014 profit on a heavy-duty diesel truck costing $811,000 for her business. In order to lower her income taxes for the year, she decided to take the maximum Section 179 deduction plus the MACRS depreciation for 7-year property. The ceiling for Section 179 in 2014 is $25,000. No other capital assets were purchased during 2014. What is the total deduction for the truck in 2014?

A.

$25,000

Correct B.

$137,319

C.

$112,319

D.

$405,500

You are correct, the answer is B.

Sally Markey took the largest Section 179 deduction available in 2014, $25,000. This reduced the truck tax basis to $786,000 ($811,000 – $25,000). Depreciation available for the first year of MACRS is $112,319 ($786,000 × 0.1429). Total expense is $137,319 for the year ($25,000 + $112,319).

Note

Be aware that more than 50 tax breaks that expired in 2013 have not been extended to 2014 as of the July 2014 publication date of this review; they are currently in the U.S. Senate awaiting approval.

I'm a bit confused. How is this purchase eligible for section 179 when the phaseout starts on maximum fixed asset purchases of $200,000 and is completely phased out at $225,000

AUD - 74 (May 2012) 91 (May 2013)
FAR - 81 (August 2014)
REG - 83 (October 2014)
BEC - (11/24/14)

[Mary 2496]

The numbers are a bit mixed up in this. The $ limit on equipment isn't $200,000, it's $2 million. I use 179 deductions regularly at work and I know that $200,000 isn't the maximum, that's way too low. The equipment itself does qualify, as it is under $2 million.

From what I remember correctly (our software does it's own thing with it), assets that cost $2 million to $2,500,000 are reduced by a certain amount so that they can be 179 expensed. Assets that cost over $2.5 million don't qualify at all and a Section 179 expense cannot be used for those assets.

[Mary 2496]

Well … back to reg. Everyone have a great study day! Ugh … happy weekend!

[rzrbkfaith]

Mary – in 2014, the 179 limits reverted back to their original amounts, which are 25,000 for purchases up to 200,000. Purchases over 200,000 cause 179 to be phased out. Maybe it's possible that you are still working on 2013 clients? I know I am with the 10/15 deadline approaching.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Author]

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