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This is just kind of a mini rant, if you like Gleim and it works for you that’s totally fine. After reading lots of good reviews about the Gleim review system (that it “over-prepares” you), I decided to purchased it. The book is unnecessarily wordy, videos are boring, and some of the explanations for MCQ questions are horrible. I bought the Ninja package and found the book and Bob’s videos to be much easier to understand. I also watched some videos from WileyCPA and Roger on youtube and found those to be much more engaging and informative than Gleim CPA Review‘s tools. Just as an example, here’s a question related to PPE from Gleim:
Cole Co. began constructing a building for its own use in January. During the year, Cole incurred interest of $50,000 on specific construction debt and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during the year was $40,000. What amount of interest cost should Cole capitalize?
The correct answer here is (A) $40,000. I tried understanding the explanation provided by Gleim but just got more confused afterwards:
Material interest costs incurred for the construction of certain assets for internal use are capitalized. The interest to be capitalized is determined by applying an appropriate rate to the average qualifying expenditures accumulated during a given period. However, the interest capitalized may not exceed the amount incurred during the period. Thus, $40,000 of the interest incurred on the construction is capitalized.
I searched the same question here and found someone else posted an explanation from another prep course, and it was straight forward and easier to understand:
The amount of interest cost which should be capitalized during building construction is the lower of avoidable interest or actual interest. Avoidable interest equals the interest computed on the weighted-average amount of accumulated expenditures on the building ($40,000). Since actual interest is $50,000 + $20,000 = $70,000.00 $70,000, the amount capitalized should be $40,000.
Maybe I am just really dumb, but that second explanation makes much more sense. Anyway, I guess I just really don’t like the Gleim system overall, and it doesn’t help that it makes you feel like a failure for never “completing” the study units until it says so. I can only hope that Gleim gets better for the other sections.
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