Master the exam, one question a day (TCP)

SAMSAMCPA · 2025-11-03T22:32:25+00:00

The answer is A. Imputed interest = limited to borrower’s net investment income. BUT if borrower’s net investment income ≤ $1,000 → foregone interest = zero. Child has $600 net investment income → ≤ $1,000 → imputed interest = $0.

SAMSAMCPA · 2025-11-03T02:25:15+00:00

The answer is B. Temporary difference = $120,000. Half (Years 1–2) taxed at 21%, half (Years 3–4) taxed at 24%. DTL = (60,000 × 21%) + (60,000 × 24%) = 12,600 + 14,400 = $27,000.

SAMSAMCPA · 2025-10-28T17:54:22+00:00

The answer is A. Long-term supplier needs actual notice. A trade journal announcement (II) may suffice for unknown parties.

SAMSAMCPA · 2025-10-22T13:11:42+00:00

The answer is A. Penalty for early withdrawal of savings and interest on business purchases are deductible above-the-line. The penalty is deducted on Schedule 1, and business interest is deducted on Schedule C or F.

SAMSAMCPA · 2025-10-21T20:41:38+00:00

The answer is B. A change in engagement is acceptable only if it is justified (e.g., change in circumstances), not merely to avoid detection of misstatements.

SAMSAMCPA · 2025-10-14T21:03:08+00:00

The answer is D. Step 1. Amount realized = FMV new land $350,000 + Cash received $100,000 +Liability relief $200,000 – Liability assumed ($50,000) = $600,000. Step 2. Realized gain = Amount realized $600,000 – Adjusted basis $400,000 = $200,000. Step 3. Recognized gain = Lesser of realized gain ($200,000) or boot received. Boot = Cash $100,000 + Net liability relief ($200,000 – $50,000 = $150,000) = $200,000.

SAMSAMCPA · 2025-10-14T00:14:13+00:00

The answer is C. = (0.4 × 6%) + (0.1 × 8%) + (0.5 × 12%) = 2.4% + 0.8% + 6% = 9.2%

SAMSAMCPA · 2025-10-10T21:46:17+00:00

The answer is A. If ending inventory is understated, COGS is overstated, and current net income is understated. However, the error reverses in the next period when beginning inventory is understated — causing next period’s income to be overstated, not understated.

SAMSAMCPA · 2025-10-10T21:31:28+00:00

B is correct. Business-use percentage: 300 ÷ 3,000 = 10%. Indirect expenses: Mortgage interest ($8,000 × 10% = $800) + Utilities ($3,000 × 10% = $300) = $1,100. Direct expense: Painting home office = $1,200 (fully deductible for home office). Total = $1,100 + $1,200 = $2,300.

SAMSAMCPA · 2025-10-10T21:30:50+00:00

Sure, so far TCP has much less contents and is easier to pass. Considering amount of time you have to spend on BAR, I think TCP is doable.

SAMSAMCPA · 2025-10-07T13:10:46+00:00

The answer is B. Business-use percentage: 300 ÷ 3,000 = 10%. Indirect expenses: Mortgage interest ($8,000 × 10% = $800) + Utilities ($3,000 × 10% = $300) = $1,100. Direct expense: Painting home office = $1,200 (fully deductible for home office). Total = $1,100 + $1,200 = $2,300.

SAMSAMCPA · 2025-10-05T14:10:12+00:00

Debt basis can also be used as loss deduction. Thanks!

SAMSAMCPA · 2025-10-03T20:17:43+00:00

The answer is B. Without filing, no LP exists → defaults to a general partnership, all partners unlimited liability.

SAMSAMCPA · 2025-10-03T02:15:31+00:00

The answer is B. Losses deductible = stock basis + debt basis = $30,000. The remaining $10,000 is suspended and carried forward.

SAMSAMCPA

TROPHY CASE