AICPA CPA-Regulation Exam - Topic 1 Question 40 Discussion

Actual exam question for AICPA's CPA-Regulation exam

Question #: 40
Topic #: 1

Fred Berk bought a plot of land with a cash payment of $40,000 and a mortgage of $50,000. In addition, Berk paid $200 for a title insurance policy. Berk's basis in this land is:

A$40,000

B$40,200

C$90,000

D$90,200

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. $90,200 is Berk's basis in the land.

Rule: The basis of the property acquired will be the property's cost consisting of the amount of cash paid plus any amount of related debt assumed. Cost will be adjusted to reflect any additional costs incurred in purchasing the property.

Choices 'a', 'b', and 'c' are incorrect, per the above rule.

by Diane at May 05, 2022, 04:45 AM

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Alva

4 months ago

I thought it was just the cash and insurance, not the mortgage!

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Aaron

4 months ago

I agree with the $90,200 option, seems right to me.

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Kimberely

4 months ago

Wait, are we really counting the mortgage in the basis?

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Jacquline

4 months ago

Definitely $90,200, that includes everything!

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Cherry

5 months ago

The basis includes the cash payment and title insurance.

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Onita

5 months ago

The key here is that the question is asking if the command will display a list of volumes, not just information about the container. I think the 'docker container inspect' command is more likely to give you detailed container info rather than a straightforward list of volumes.

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Maryrose

5 months ago

I practiced a question similar to this last week and I chose Anti-DDoS Basic, but now I'm wondering if I should reconsider and pick the Pro version instead.

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Hassie

5 months ago

I think engaging an independent party for review is definitely a part of best practices, but I'm not sure if it's the most important.

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