REG Study Group Q1 2017
February 15, 2017 at 10:04 pm #1478956
dtatham for sure you did well. I know you mastered the concepts. I took it on Feb 13th and totally disappointed. I don't want to think about it . Will wait for the results.February 15, 2017 at 10:06 pm #1478958
Molly Morris is 15 years old. Molly’s parents (James and Beth) divorced in May of the current tax year. Molly lived with both parents until the divorce. Molly does not provide more than half of her own support. After the divorce, Molly’s mother has custody of Molly, but Molly lives equal time with both parents. James’ AGI is $40,000 and Beth’s AGI is $35,000. Molly’s parents cannot decide who gets to take the dependency exemption for Molly. Assuming neither parent waives their right to the exemption, which statement is true?
a. James takes the dependency exemption for Molly because his AGI is higher.
b. Beth takes the dependency exemption for Molly because her AGI is lower.
c. Beth and James must alternate taking the dependency exemption for Molly.
d. Both parents take a dependency exemption for Molly because she lives equal time with each parent.February 15, 2017 at 10:08 pm #1478959
Kim was seriously injured at her job. As a result of her injury, she received the following payments:
$5,000 reimbursement from employer-provided health insurance for medical expenses paid by Kim. The premiums this year paid by Kim’s employer totaled $6,000.
$15,000 disability pay. Kim has disability insurance provided by her employer as a nontaxable fringe benefit. Kim’s employer paid $6,000 in disability premiums this year on behalf of Kim.
$10,000 received for damages for personal physical injury.
$200,000 for punitive damages.
What amount is taxable to Kim?
d. $236,000February 15, 2017 at 10:11 pm #1478962
I like this one
Betty is age 34 and has AGI of $50,000. The following items may qualify as itemized deductions for Betty:
Qualified medical expenses
Real estate tax
State income tax
Mortgage interest on acquisition indebtedness
Home equity interest on a loan not used to improve the home
Miscellaneous itemized deductions
What is the itemized deduction add-back for the AMT?
d. $2,500February 15, 2017 at 10:12 pm #1478968
Anthony entered into a long-term construction contract in Year 3. The total profit of the contract is $80,000 and does not change over the life of the contract. The contract will be completed in Year 5. The contract is 20% and 70% complete at the end of Years 3 and 4, respectively.
What is the alternative minimum tax adjustment required in Year 4?
d. $16,000February 15, 2017 at 10:15 pm #1478970
Carol has taxable income before personal exemptions of $48,000. Included in that calculation are the following items:
Real estate taxes on her home
Mortgage interest on acquisition indebtedness
Carol also had excluded municipal bond interest income of $8,000, $3,000 of which was deemed to be private activity bond interest. What are Carol’s total adjustments for alternative minimum tax?
d. $2,000February 15, 2017 at 10:21 pm #1478976
Briana has various items of income as follows:
Interest and dividends
Sole proprietorship income on Schedule C
Income from an S corporation from Schedule K-1
Income as a limited partner from a limited partnership from Schedule K-1
For purposes of the self-employment tax, what are the net earnings from self-employment? (Note: Please answer before the required 92.35% calculation performed on Schedule SE.)
The above are some of the questions I marked for review before exam and for me it was tricky. I will post some more tomorrow.
Good luck to all of you 🙂
I will wait for the results on Feb 23rd. If I don't pass then I will lose my BEC credit which expires on Feb 28th.Fingers crossed and stressed.February 15, 2017 at 10:24 pm #1478979
Parent Corp. owns 15% of Sub Corp. Parent has gross income of $43,000 and allowable deductions of $39,000 before considering any dividends received deduction (DRD). Included in the $43,000 gross income is $8,000 in dividends from Sub.
What is the maximum DRD available to Parent?
d. $5,600February 15, 2017 at 10:25 pm #1478982February 15, 2017 at 10:25 pm #1478983
Chandler Inc. has regular taxable income of $123,000. Included in that calculation are the following items:
Percentage depletion in excess of cost depletion
Private activity bond interest income
Chandler had a long-term contract and reported no income during the current year under the completed contract method. Income reported under the percentage of completion method would have been $12,000. What is Chandler’s alternative minimum taxable income (AMTI)?
d. $105,500February 15, 2017 at 10:28 pm #1478985
lol no real exam questions. I can't post real exam questions. This is from my study material.The above questions I marked to review before the exam and which was tricky for me. Just wanted to share.February 15, 2017 at 10:32 pm #1478994
I have a question that's been bugging me for a while now.
Which of the following statements is (are) correct regarding the common law elements that must be proven to support a finding of constructive fraud against a CPA?
a. The plaintiff has justifiably relied on the CPA's misrepresentation.
b. The CPA has acted in a grossly negligent manner.
The answer is both. I've had two or three similar questions to this, I can't seem to find the question numbers, where the plaintiff only had to prove that the CPA acted in a grossly negligent manner. Why is it both in this instance? What slight nuance am I missing here? Do you guys understand what I'm getting at?February 15, 2017 at 10:42 pm #1478998
b. The CPA has acted in a grossly negligent manner.
In BECKER they have given for constructive fraud – The CPA has acted in a grossly negligent manner.
Reliance is one of the real defense.February 15, 2017 at 11:11 pm #1479018
Constructive Fraud – Tort (Gross Negligence)
Material Misrepresentation of Fact – M
Reckless disregard for truth – R
Making statement without knowing if it true or false
Must have reasonable reliance – R
Must have intent to rely – I
Must have damages – applies to anyone suffering loss
– Yes both are correct
Reliance and Gross NegligenceFebruary 15, 2017 at 11:17 pm #1479021
This youtube channel was helpful to meFebruary 15, 2017 at 11:21 pm #1479022
The reasoning for the answer of both is for common law constructive fraud you need the 5 qualities. What is needed for constructive fraud: Material misrepresentation of fact, actual and justifiable reliance of plaintiff, intent to induce reliance of plaintiff, defendant acted gross negligently/recklessly, and damages occurred.
From what I recall if the CPA was negligent and no material misrepresentation the CPA is not liable. I guess I could be wrong but I believe that a material misrepresentation must have had happened (Reasoning is, I recall there was a question in Becker that said the misstatement was not material so no liability was formed).
What you may be thinking of is for Securities Act of 1933, Section 11 the plaintiff only need to prove: they owned the security, suffered a loss, and a material misrepresentation or omission of fact occurred. The plaintiff does not need to prove reliance on the CPA's opinion. But here if they performed all audit procedures as a reasonable CPA they would not be liable.
I'm not sure if that helped at all but I thought I would give it a try. Good luck!
Audit: 92, FAR: 88, BEC: 82, REG: 2/17/15February 16, 2017 at 12:19 am #1479060
I just posted my notes and the sample questions I used to review before the exam. If it is helpful I will post my notes and example questions. Let me know your thoughts. Again this forum helped me a lot.I took REG on Feb 13th and waiting for my result.I have free time now and wanted to help you guys anyway I can. Let me know how I can contribute to this forum. Again thank you for all the help and wishing you all the best in your exams:-)February 16, 2017 at 9:56 am #1479189
@esenthill Thanks so much for posting the sample questions, and links to some of your notes! Can you please post more notes/links to quizlets if you don't mind? Also, is there a way you can post answers to your sample questions? Again, thank you so much!! I cannot emphasize how helpful the links to those two quizlets have been helpful to me. I'm taking REG tomorrow afternoon, and trying to master the last major points! Good luck everyone!February 16, 2017 at 10:49 am #1479238
all4inQ1 – I will try to post as much I can today.Hope it helps. All the best you and you can do it 🙂February 16, 2017 at 11:02 am #1479253
Answer : A
For the above questionFebruary 16, 2017 at 11:18 am #1479271
Just formatting takes more time in posting. I will keep posting the whole day. Especially Tax. Again all the best 🙂February 16, 2017 at 2:35 pm #1479414February 16, 2017 at 2:44 pm #1479424February 16, 2017 at 3:42 pm #1479481
Hello! 🙂 can someone please post the dates applicable for people testing for Reg in the first half
in some of my books it says corporations are 3/15 (text from 2016) and in the updated ninja notes it says for corps its on 4/15, i have realized a few of the dates have changes, can someone kindly please let me know if this is correct:
individuals same as before 4/15 or 3 and half months after year end
corporations changed and now is 4/15, 5 mo extension (calender year) 6 mo ext (fiscal year)
partnerships is 3/15, 6 month extension
s-corp's is 3/15
exempt entities is 5/15
trusts/estates 4/15February 16, 2017 at 6:59 pm #1479600February 16, 2017 at 7:24 pm #1479622February 16, 2017 at 7:27 pm #1479630
editedFebruary 16, 2017 at 7:29 pm #1479631
Its in the supplemental questions which are little tricky . It helped me a lot in understanding the concept.February 16, 2017 at 7:30 pm #1479637
Can you post the answers soon please! Im having exam next week.
ThanksFebruary 16, 2017 at 7:44 pm #1479649
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