Written by guest blogger Amy W.
I’m now one week into my studies for the EA exam, Part 2. I had a good time with Chapter 1, Accounting Methods and Periods. I don’t yet have my written materials, so I relied entirely on the material that is available online as well as my dim memories of this subject from my 20-year-old MBA. Happily, physical concepts like inventory are easy to grasp because you have a mental picture to hang onto – boxes of blue widgets – so LIFO and FIFO make sense in a very direct way. I went through the quizzes and the slide presentation, then to the Gleim EA Test Prep software. I tested myself with all 68 questions and scored 80% – which indicated to me that I had a good basic grasp of the material and just needed to iron out some fine points. Not a problem; I felt confident.
Such is not the case, however, with Chapter 2, Income and Property Transactions. My score on the initial test was a terrifying 45%. The audiovisual material went way too fast for me, and I had to stop it several times to re-read the slide. I will read the online Knowledge Transfer Outline and I know that will help…but the truth is that I’ve been delaying it because I would really prefer to read this material in hard copy. I want to write on the pages, highlight, draw smiling and frowning faces, etc. Where, oh where, is my Gleim book? Hurry, friendly UPS man! Re-encountering Section 1245 and 1250 property in this chapter was a humbling experience. Yes, I had drummed Section 1245 and Section 1250 property into my head when studying for Part 1, but the intervening four months of a crazed tax season have pushed that learning into some dusty, moth-ridden and little-visited corner of my mental attic. I felt a moment of panic and then remembered: Amy’s Notebook.
Next week’s blog will cover the importance of having a Notebook (yes, with a capital “N”) during the test prep process – stay tuned!
P.S. Fascinating things learned this week: income from being a notary isn’t taxed for self employment… involuntary conversion of inventory is taxed for self-employment…livestock of different sexes does not qualify for like-kind exchange…gross income from farming and gross farm income are different things…