[jeff]

@h0wdyus

Incorrect

The answer is B. Comparable sales.

“The use of comparable sales is not an income approach to valuation of a business, it is a market approach. Under the comparable sales approach, the value of a business is determined by comparing it to other entities with comparable characteristics for which the value is more readily determinable.”

This was a tricky one

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[EYNewHire]

Well don't freak out that isn't going to help you. Review what you think you are weakest on between now and tomorrow night. Then tomorrow night just do something else. Anything else other than studying. At that point you know all you are going to know and cramming will only lead to stressing out.

[RandomAlt]

@jamie7johnson

I hope I don't confuse you, but I use a different way to arrive at the answer.

The question is asking about relevant costs. A general run of thumb with relevant cost questions is that avoidable costs are relevant and unavoidable costs are not relevant.

So what changes in the problem.

We close the business:

-We loss $18,000 in contribution margin. This is money we would have made if the business continued to exist

-We stop paying avoidable costs of $12,000

-We gain 24,000 a year from the new rent revenue

So

-18,000 (loss CM)

+12,000 (don't have to pay avoidable costs anymore)

+24,000

---

18,000

The unavoidable cost of $10,800 is not relevant, because we have to pay it no matter which choice we make.

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[Zackrampage]

Thanks EY

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[jamie7johnson]

Thanks, EYNewHire and RandomAlt!

I initially used EYNewHire's method and got to the $13,200, but forgot to take into account the $4,200 loss we'd be giving up.

REG - 79
BEC - 80
FAR - 80
AUD - 77

[jamie7johnson]

@zachrampage

I feel like I've slacked off in my grand total of 3 weeks of studying. I think I was burnt out from studying for my last one. Yet I feel oddly calm for this one… funny how that works, huh?

If you've been studying for that long, you've got this! Review those formulas that trip you up and stick them into short-term memory! I'm writing out all the formulas/need to knows in one consolidated page(s) right now. I felt like that really helped me for my last exam.

REG - 79
BEC - 80
FAR - 80
AUD - 77

[Anonymous]

Need some advice…

Exam for BEC is on Saturday at 4pm. I've gone over all sections so now it's just hammering away any remaining MCQ's. I haven't looked over any written communication yet, saving that starting tomorrow or Thursday.

I just feel if I try to squeeze in any more material I'll forget what I'm already comfortable with.

Any suggestions to some last couple of days studying tips? Should I just keep going with the MCQ's and looking over all the formulas daily?

I bet I could answer my question myself, but I'd like some Ninja reassurance…

Thanks!

[EYNewHire]

@DunkinDonutsJunkie just do what you did when you took REG. That seemed to work for you. 🙂

[EYNewHire]

Oops. Somehow made a double post.

[wongl0786]

Help needed!. Could someone explain to me please.

For the simulation part, do we have to rewrite “To and From “? Or we just directly start with the introduction. Thanks.

To : Mr X

From : CPA candidate

[Anonymous]

EYNewHire: I'll try! But somehow I feel more difficulty with BEC than REG.

wongI0786: I believe you have to write everything. I'd say be prepared for it anyway if it's not pre-filled.

[Zackrampage]

@jamie thanks!

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[h0wdyus]

@wongl0786

I have not take the exam yet, but I think the To and from will be mentioned. If it is not mention then just mention it. Just like a normal letter.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Anonymous]

Does anybody have any general tips on the Simulation section of BEC?

Are there any drawbacks to keeping the essay VERY concise? Also, is it okay to use the same exact format for each essay?

Thanks

[GoVPI]

@zackrampage.. good luck!! i've got my fingers crossed.

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[Anonymous]

I am reviewing the WC the day before the exam. Going to read through them in Becker with the accompanied solutions.

[Author]

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