Test Your Might: REG (NINJA MCQ Giveaway x 3)

  • Creator
    Topic
  • #191421
    jeff
    Keymaster

    – The NINJAs are giving away a NINJA MCQ section of the winner’s choice.

    – To enter the drawing, simply post an answer to each question (you don’t have to get them correct to be picked).

    – Three (3) winners will be randomly selected from this thread

    – You can gift your winning section to someone else (i.e. people who already passed can participate)

    – Deadline to answer/enter: Friday – 4pm Eastern

    1. On December 1, 2014, Jeff Weber placed in service office furniture (7-year life), which cost $25,000. Jeff did not elect Section 179 expensing. The office furniture was the only asset purchased during the year. What amount can Jeff claim as depreciation under MACRS for 2014?

    A. $893

    B. $7,000

    C. $1,000

    D. $4,000

    Answer: A

    First-year depreciation under MACRS is based on double-declining balance. A seven-year life under double declining would yield depreciation of 2/7 for the first year. Because the purchase was made in December, the mid-quarter convention is used and 1-1/2 months of depreciation is recorded. Depreciation is $893 ($25,000 × 2/7 × 1.5/12).

    2. According to the profession’s ethical standards, a CPA would be considered independent in which of the following instances?

    A. A client leases part of an office building from the CPA, resulting in a material indirect financial interest to the CPA.

    B. The CPA has a material direct financial interest in a client, but transfers the interest into a blind trust.

    C. The CPA owns an office building and the mortgage on the building is guaranteed by a client.

    D. The CPA belongs to a client country club in which membership requires the acquisition of a pro rata share of equity.

    Answer: D

    ET Section 191.034 indicates that if membership in a client social club, such as a country club, is basically only for social purposes and the CPA does not serve on the board of directors, then independence would not be violated.

    The other answer alternatives, according to ET Section 191, are impairments of independence:

    • A client leases part of an office building from the CPA, resulting in a material indirect financial interest to the CPA.

    • The CPA has a material direct financial interest in a client, but transfers the interest into a blind trust.

    • The CPA owns an office building and the mortgage on the building is guaranteed by a client.

    3. Green was unable to repay a loan from State Bank when due. State refused to renew the loan unless Green provided an acceptable surety. Green asked Royal, a friend, to act as surety of the loan. To induce Royal to agree to become a surety, Green fraudulently represented Green’s financial condition and promised Royal discounts on merchandise sold at Green’s store. Royal agreed to act as surety and the loan was renewed. Later, Green’s obligation to State was discharged in Green’s bankruptcy. State wants to hold Royal liable. Royal may avoid liability:

    A. if Royal can show that State was aware of the fraudulent representations.

    B. if Royal was an uncompensated surety.

    C. because the discharge in bankruptcy will prevent Royal from having a right of reimbursement.

    D. because the arrangement was void at the inception.

    Answer: A

    A surety is a person who agrees to be secondarily liable for the debt of another party. If this agreement was elicited by fraud on the part of the debtor (primary party), the surety remains liable unless the surety can show that the creditor was aware of the fraud committed by the debtor.

    AUD - 79
    BEC - 80
    FAR - 76
    REG - 92
    Jeff Elliott, CPA (KS)
    NINJA CPA | NINJA CMA | NINJA CPE | Another71
Viewing 15 replies - 1 through 15 (of 87 total)
  • Author
    Replies
  • #642345
    funtiks
    Participant

    1. A

    2. D

    3. B

    FAR - 76*, 73, 85
    BEC - 69, 72, 78*, 80
    AUD - 72, 71, 90
    REG - 71, 74, 85

    AFTER 3 YEARS I'M DONE!!!

    #642346
    Anonymous
    Inactive

    A

    A

    A

    #642347
    Anonymous
    Inactive

    1. A

    2. A

    3. D

    #642348
    hadamski19
    Member

    A

    A

    D

    #642349
    Mamahulme
    Member

    1. A

    2. D

    3. B

    #642350
    sweetmoon
    Member

    1.A

    2.A

    3.A

    FAR : 71, 83
    AUD : 73,88
    BEC : 87
    REG : sweet 82 and DONE !!

    #642351
    rp 12
    Participant

    A, A, and A.

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    AUD - 67, 62, 77 (lost credit), TBA

    FAR - 53, 48, 58, 62, XX

    BEC - 53, XX

     

    "Success in life comes when you simply refuse to give up, with goals so strong that obstacles, failure, and loss act only as motivation"

    AUD: 68, 62, 77✔ (expires 10/31/16)
    FAR: 53, 48, XX (retake 6/16)
    REG:
    BEC: 53

    #642352
    Anonymous
    Inactive

    1 C

    2 D

    3 D

    #642353
    Taherkq
    Member

    1.A

    2.D

    3.A

    FAR- 80
    BEC- 81
    REG- 85
    AUD- 77

    Done!!!!

    (Becker)

    #642354
    MSUDawg99
    Member

    1. A

    2. A

    3. A

    AUD 81
    BEC 75
    REG 82
    FAR 90
    Ethics 98

    #642355
    NoraU
    Member

    1. A

    2. D

    3. D

    BEC 05/12/14 77
    REG 08/25/14 82
    FAR 11/25/14 80
    AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

    #642356
    NJPRU
    Member

    AAA

    AUD: DONE
    FAR: DONE
    BEC: DONE
    REG: DONE

    IM GOING TO BE A CPA!!!!!

    #642357
    lobnat
    Member

    A

    D

    B

    B - 80
    A - 82
    R - 79
    F - 77

    Boom

    "No shortcuts, work for it."

    #642358
    s2sylvir
    Member

    1. A

    2. A

    3. A

    BEC - PASS (79)
    AUD - PASS (63, 71, 74, 74, 83)
    REG - PASS (88)
    FAR - PASS (58, 89)

    Becker for all + FAR 10 Point Combo

    #642359
    aegrace90
    Participant

    A A D

    AUD - 7/14 DONE
    FAR - 10/14 DONE
    BEC - 11/14 DONE
    REG - 11/15 DONE

    CPA in VT 1/16

Viewing 15 replies - 1 through 15 (of 87 total)
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