[Q3] REG Study Group 2014 - Page 49

Viewing 15 replies - 721 through 735 (of 1,445 total)
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  • #591335

    @CPAMommyof3 Is the answer to your Securities Act of 1933 question…A?

    #591336
    Anonymous
    Inactive

    The Securities Question–It's actually D: “If securities are offered and sold and the registration statement contains material misstatements and/or omissions, the investor can sue for recovery of losses. The issuer can be sued and is absolutely liable for all misstatements.”

    I chose C. šŸ™

    #591337
    Amay
    Member

    I guess the fact that it said “all” in choice A should have tipped us off. Both A and C have the word “all” in them and I think those rules apply only to SEC issuers.

    BEC: 73, 81
    AUD: 85
    FAR: 71, 77
    REG: 74, 75...finally DONE! šŸ˜€

    *This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently šŸ™‚

    #591338

    I was going back and forth between A and C. Answer choice D did not cross my mind.

    #591339
    Amay
    Member

    Fuller was the owner and beneficiary of a $200,000 life insurance policy on a parent. Fuller sold the policy to Decker, for $25,000. Decker paid a total of $40,000 in premiums. Upon the death of the parent, what amount must Decker include in gross income?

    A. 0

    b. 135k

    c. 160k

    d. 200k

    BEC: 73, 81
    AUD: 85
    FAR: 71, 77
    REG: 74, 75...finally DONE! šŸ˜€

    *This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently šŸ™‚

    #591340
    Anonymous
    Inactive

    This may be a dumb question but what issuers don't have to register with the SEC?

    #591341

    Peter Olinto from Becker made a comment that answer choices with extreme words such as “all, never, always, etc” can trick you into thinking they are correct. That one word can actually make the whole answer choice wrong.

    #591342
    Anonymous
    Inactive

    I think it's $135K for the income on the insurance policy.

    #591343
    Anonymous
    Inactive

    There are 2 types of Employee Stock Options [ESO]:

    (1) Nonqualified Options

    (2) Qualified Options

    Question: Which of these 2 options are taxed when granted if the option has a readily ascertainable value when granted?

    #591344
    Anonymous
    Inactive

    That's true about the word “All, etc”. I usually go with answers that say “may”

    #591345
    Amay
    Member

    On bankruptcy Q, I'm going with A.

    BEC: 73, 81
    AUD: 85
    FAR: 71, 77
    REG: 74, 75...finally DONE! šŸ˜€

    *This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently šŸ™‚

    #591346
    Amay
    Member

    If I HiYa! your answer to my question, it means you are correct. Good job mama! šŸ˜‰

    BEC: 73, 81
    AUD: 85
    FAR: 71, 77
    REG: 74, 75...finally DONE! šŸ˜€

    *This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently šŸ™‚

    #591347
    Anonymous
    Inactive

    @Amay–A is correct

    @Amor–Nonqualified are taxed when exercised.

    #591348
    Anonymous
    Inactive

    Thanks Amay–I'll start Hiya-ing correct answers to my questions too so we don't have to have so many posts. I'm working on a laptop and scrolling up and down so much drove me crazy so I took out my signature to have to scroll through less. šŸ™‚

    #591349
    Anonymous
    Inactive

    Downs, Frey, and Vick formed the DFV general partnership to act as manufacturersā€™ representatives. The partners agreed Downs would receive 40% of any partnership profits, and Frey and Vick would each receive 30% of such profits. It was also agreed that the partnership would not terminate for five years. After the fourth year, the partners agreed to terminate the partnership. At that time, the partnersā€™ capital accounts were as follows: Downs, $20,000; Frey, $15,000; and Vick, $10,000. There also were undistributed losses of $30,000. Which of the following statements about the form of the DFV partnership agreeĀ­ment is correct?

    A. It must be in writing because the partnership was to last for longer than one year.

    B. It must be in writing because partnership profits would not be equally divided.

    C. It could be oral because the partners had explicitly agreed to do business together.

    D. It could be oral because the partnership did not deal in real estate.

Viewing 15 replies - 721 through 735 (of 1,445 total)
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