[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[monikernc]

Cortes and payaza, knocking them out!!! Congrats!!!

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[payaza2000]

@monikernc

Thanks man.

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[bilal1990]

Hi All,

I am schedule to take BEC in April.
I have used Becker & Ninja Notes & MCQ for AUD and was not successful.

FAR: 60
REG: 55
AUD: 61 (retake in MAY)
BEC: APRIL 2016

Finding myself at a frustrating point.

I would appreciate if anyone can suggest good tips & study guides.

My Method:

I rewrite the notes & try to memorize as much as possible.
Do the MCQ and pick up whatever i get wrong.

Redo as many Sims as possible.

Thanks all for your help in advance!

[KLMCPA]

@ Perkunas

Congratulations! That's awesome!! Thanks so much for taking the time to update me, your score gives me the motivation to just keep plugging away and use the same study method I have in the past. Glad that Becker didn't let you down, hopefully it won't for me either! lol Thanks again!

FAR: 92
AUD: 94
BEC: 2/26/16
REG: TBD

Becker Self Study

[payaza2000]

Scheduled my BEC exam for the 26th. Lets do this.

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[Anonymous]

monikernc thanks! Like everyone here I am so ready for this to be over!! Will how how studying goes this month for BEC, hopefully I can grasp the major concepts.

[monikernc]

payaza, mine is the 27th!!! let's go!

farwars, you ok?

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

I'm not gonna look at my AUD score until after I take BEC on the 29th. Don't want to lose any momentum. Today I am starting the Finance Topics- Tax effects of Decisions and Cost of Capital Computations. Also plenty of variance questions i still need to get on lock. LETS DO IT!

Congrats Payaza on the PERFECT score!
Congrats Cortes on taking out FAR!

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

that's an excellent strategy. we gotta kick BEC out of the house

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

The Moore corporation is considering the acquisition of a new machine. The machine can be purchased for 90,000, it will cost 6,000 to transport to Moore's plant and 9,000 to install. It is estimate that the machine will last 10 years, and it is expected to have an estimate salvage value of 5,000. Over its 10 year life, the machine is expected to produce 2,000 units per year with a selling price of 500 and combined material and labor costs of 450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight line method over 5 years with no estimate salvage value. Moore has a marginal tax rate of 40%.

What is the net cash flow for the tenth year that Moore corporation should use in a capital budgeting analysis?

a. $63,000
b. $81,000
c. $68,400
d. $60,000

alright so the answer is 63,000. Can someone please conceptually explain why I am taking out 40,000 for tax a first time, and then an additional 2,000 of tax. Why the additional 2,000?

x10
2,000*500
-2000*450
= 100,000

– 40,000 tax
=60,000

+5,000 SV
-2,000 tax

=63,000

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Anonymous]

Farwars If I am not wrong from what I remember when the mcq tells us that the equipment will have salvage book value for capital budgeting purposes we are supposed to assume that management will sell the equipment for that amount so we have to consider those 5,000 as cash inflow minus tax from the sale. If it we were dealing with NPV then we would take the PV at that date.

[Anonymous]

and yes lets kick BEC out of the house… I do not like BEC….

[FAR_WARS]

A company makes an investment of $150,000 with a useful life of 10 years and expects to use this investment to generate $300,000 in sales with $280,000 in incremental operating costs. If the company operates in an environment with a 30% tax rate, what are the expected after-tax cash flows that the company will use to evaluate the capital investment decision?

a)$9,500
b)$10,500
c)$16,500
d)$18,500

d is correct. Why do we not include the initial $150,000 that we spent in our answer as a cash outflow? We only use the 150,000 to figure out how much tax we are saving because of depreciation?

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Anonymous]

Farwars I am as confused as you are. My first thought was to apply the tax rate to the Net Income. Maybe someone will pinch in.

[FAR_WARS]

I think just by definition “expected after-tax cash flows” count the inflows only? I am just starting the finance problems and running the calculations without much conceptual background- so any simple explanations for why we do certain things for these types of problems are greatly appreciated!

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Author]

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