CPA Study Group

Should legal fees incurred in investments in equity holding less than 20% shares be expensed or capitalized? What about legal/consultant fees incurred in trading securities, AFS and HTM?

So we're just going to ignore the $24,000 that Serena gets in cash distribution from the S-Corp? Is it because of the wording of the 4 choices?

How much would the income need to increase to trigger social security to be taxed at 50%?

If the initial basis is 13000 and the company distributes 4000 cash that brings the basis down to 9000. Then there is a distribution of land with a FMV of 17000, however, the investors basis cannot be negative so shouldnt the basis in the land be 9000? Is this part of the new testing material starting January 1 2019?

The explanation points out two correct answers for this question - is this simply a case of one choice being "more correct" than the other? "No, unless the client provides consent" is also a correct answer here.

I thought if income the income is increasing year after year the estimated tax payments can be 110% of the previous years tax liability.

Is the statute of limitations and tax due dates still being tested on the CPA exam? I thought it was no longer being tested as of 2nd quarter of 2017

Does the father not qualify because the amount he earned is greater than the personal exemption amount allowed?

Why Thomas's income didn't get reduce with his share of charity of $4800? His portion of income is 40% of 212,000=84800 + 60,000 guaranteed payment =144,800 Then where is the treatment of 40% of 12000 charity for his portion?

Lease obligation = lease liability. Lease liability = 48. Lease obligation = 48. Interest payable = 4.8. Total liability=lease liability+interest payable= 52.8. Question asks for lease obligation, not total liability. Where am I going wrong?