CPA Study Group

On the exam would they provide the exact timing on when the walls are constructed? Here I assumed 1/2 year since it was purchased Jan 1. and would take time to construct the walls.

It looks like the answer key reports total dividents of $90K, but should be $100K

Why isn't the 25% rule being applied in the questions ? Meaning, why is it the entire gain is being recognized rather than a proportional recognition ?

The answer choice conflicts the explanation.

Ben is a limited partner and hence the income should be regarded as a passive income.

Wouldn't the specialized industry journals be a good answer?

Standard aside, what's the likely reason why it is based on prior year FS rather than the initial assessment of control risk or others?

Why isn't there Depreciation in this? Shouldn't the answer be a 1,170,000 increase in unrestricted net assets?

The explanation is correct: any property used in trade or business is not considered capital assets. BUT the answer that the writer chooses is the opposite.

I thought the dividends of 12,000 (40,000 x 30%) should be subtracted from the net income distribution of 39,000 (130,000 x 30%) and then subtract the depreciation expense in order to get to the final number. Is there any reason why the dividend is not part of the calculation?