FAR Study Group – Q2 2018 - Page 15

Viewing 15 replies - 211 through 225 (of 237 total)
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  • #1810861
    Anonymous
    Participant

    I'm having a hard time with this one… How would I have known it was a property dividend?

    On June 27, 20X2, Brite Co. distributed to its common stockholders 100,000 outstanding common shares of its investment in Quik, Inc., an unrelated party. The carrying amount on Brite's books of Quik's $1 par common stock was $2 per share. Immediately after the distribution, the market price of Quik's stock was $2.50 per share. In its income statement for the year ended June 30, 20X2, what amount should Brite report as gain before income taxes on disposal of the stock?

    $200,000

    $250,000

    $50,000

    $0

    The distribution of the Quik stock is a property dividend that will be reported at the fair value of the stock when the dividend is declared. The difference between the fair value and the carrying value is recognized as a gain or loss as if the property had been sold at fair value. The Quik stock had a fair value of $2.50 compared to a carrying amount of $2 per share resulting in a gain of $.50 per share on 100,000 shares or a total gain of $50,000.

    I'm tired of operating in fear and mediocrity. It's time to try. It's time to do. It's time to go.

    #1811980
    Anu
    Participant

    What happened to the search feature? in this forum. Does anyone know?

    #1813041
    Accounting123
    Participant

    @born to win

    You would know it was a property dividend because Brite Co distributed stock that isn't shares of its own company “BRite Co”. They distributed stock of their investment in “Quick”. So that makes it a property dividend.

    #1813237

    Hello. I recently purchased Becker after being unsuccessful with Roger. I have struggled to take tests my entire life. In fact, I never found an effective way to study. Instead I just worked 4x as hard on the rest of the assignments- homework, essays, projects, extra credit, etc. and maintained a B+/A- average.

    I have followed Becker's method but I am finding it takes me 4 hourish to get through one subsection(lecture, skills practice, MCQ's). Is this normal? FAR is broken into 10 sections with about 8 subsections plus TBS and Progress Tests. This means you have to do more than one section per day. I am feeling like I cannot keep up this pace and make it to the end? Can anyone suggest how they broke sections down per day/week to allow them to complete 10 sections sections in 10 weeks like the Becker schedule suggests?

    Thank you in advance for your help! 🙂

    #1814142
    Anonymous
    Inactive

    Hello all,

    First of all, please hold back any mean or judgmental comments. In truth we all know that this CPA journey is not easy and we are all targeted by TONS of advertisements and grass is greener over there stories and testimonies…. I have spent a small fortune!

    If you had full access and legal ownership of FAR: Wiley (Platinum and Virtual Classes), Becker (Live-Online), Gleim (MCQ & SIMS), and Super Fast notes. REG: Wiley (Platinum and Virtual Classes), Becker (Live-Online), Gleim (MCQ & SIMS), and Ninja Notes. AUD and BEC: Wiley (Platinum and Virtual Classes) and Becker(Live-Online). My testing order is FAR (late August 2018), AUD (?), REG (?), and BEC (?).

    With all of that in mind, what study materials would you use and what would be your study method for FAR (for now) in order to pass by the last week of August 2018? I was planning on focusing on Wiley until the Becker Live online class starts on 7/9, and at that point only use Becker.

    p.s. my Becker expires June 2019 and Gleim expires December 2018.

    #1815069
    Steph
    Participant

    Does anyone have any suggestions on what to do if I don't understand something when going over it in i'm the Becker lecture? I'm struggling with intercompany transactions and consolidated financial statements. I know I'm going to struggle with deferred taxes etc. as well based on previous experiences in class. Any tips would be much appreciated!

    #1817457
    Anonymous
    Inactive

    Could someone help me out with the JE's for this question? For some reason, I'm not comprehending the JE's for this question.

    Cap Corp. reported accrued investment interest receivable of $38,000 and $46,500 at January 1 and December 31, respectively. During the year, cash collections from the investments included the following:

    Capital gains distributions $145,000
    Interest 152,000

    What amount should Cap report as interest revenue from investments?

    These are the JE's that I wrote down:

    1/1:

    Interest Receivable 38,000
    Interest Revenue 38,000

    Cash collections during the year:

    Cash 38,000
    Interest Receivable 38,000

    12/31:

    Interest Receivable 46,500
    Interest Revenue 46,500

    Do I need to assume that $114,000 (rest of the cash collected amount) was accrued to interest receivable and interest revenue during the course of the current year?

    Interest Receivable 114,000
    Interest Revenue 114,000

    Cash 114,000
    Interest Receivable 114,000

    Also, do I need to assume for this question that they want to know the interest revenue recognized during the CURRENT year? I understand that the $38,000 of interest revenue was recognized last year. Interest revenue recognized for the CURRENT year would be (114,000 + 46,500 = 160,500), but do we need to make this assumption?

    Thanks so much!

    #1818055
    JB
    Participant

    Could someone please help me with this question? Shouldn't the answer be $220,000 (160K+50K+5K+40K-35K). My notes say that service cost is a component of net periodic pension cost.
    The following information pertains to Lee Corp.’s defined benefit pension plan for the current year:

    Service cost $160,000
    Actual and expected gain on plan assets 35,000
    Unexpected loss on plan assets related to
    a disposal of a subsidiary 40,000
    Amortization of prior service cost 5,000
    Annual interest on pension obligation 50,000

    What amount should Lee report as a separate line item titled “net periodic pension cost” in its current year-end income statement?

    A.$250,000
    B.$220,000 Incorrect
    C.$180,000
    D.$20,000
    Explanation:
    Service cost is a component of compensation expense, not net periodic pension cost. To compute the net periodic pension cost, subtract the expected rate of return on plan assets, add the amortization of prior service cost, and add the interest cost on the pension obligation:

    $(35,000) + $5,000 + $50,000 = $20,000

    #1818253
    Jmac645
    Participant

    @JB,

    The question is specifically asking for the net periodic pension cost. There are two income statement elements associated with pensions: The net periodic pension cost & compensation expense. Together, the two make up the total expense for the year related to the pension. Compensation expense is service costs (for the current period) while the other costs are included in net periodic pension costs. Just always remember service costs are a separate line item called compensation expense!

    #1818286
    felixsphone
    Participant

    All of the frustrations I've read here seem pretty normal when I look back on my experience. I skipped the lectures for the most part and studied off of the MCQ. It's a lot harder to conceptualize but I feel like I make more progress. I am pretty nervous about this coming exam and I may need to re-strategize if it doesn't turn out with a pass. It will be very defeating to have failed again. The only thing I can do is wake up, pray, and study.

    I'm sorry if you're going through these struggles, everything will be okay. If you're just starting off, now is a good time to experiment with what works for you. If you can't stand the lectures, mix it up. Do some multiple choice. It's okay to be creative. The most important part is knowing how the questions are asked, what content is being tested, and how it relates back to accounting.

    There is a lot of information that you have to condense into a meaningful summary. I know it will be worth it in the end. So I will keep going. I hope you'll join me.

    #1818349
    JB
    Participant

    @jmac645 Thank you so much for helping me out!

    #1818356
    Jmac645
    Participant

    @jb Of course. We're in the same boat, I've only got FAR left as well. Good luck! 🙂

    #1818782
    KN
    Participant

    Hi Everyone,
    I love this forum, especially for someone who is studying for CPA exam for the first time (planning to studying FAR first). Thank you all for sharing. With many have passed their FAR exam using different materials in combination with NINJA and AICPA blue prints. Due to circumstances, I need to pass all four exam in 8 months time, while working an average of 10 hrs daily 5 days a week with an 18 months old daughter and a husband. Would you kindly advise on best materials to prepare for FAR, BEC, REG, and AUD? I wanted to start right, study right, try my very best, and with some luck get it done – or not move on. I appreciate your time, and thank you for your help in advance -KN

    #1819186
    Nate
    Participant

    KN-
    I've been using Becker and I find the best part about it is I can download the whole course onto my phone through the app so i can study wherever i am/ on the go. I just have far left to pass, can't really speak for the other materials or whether they have the same features.

    #1819306
    Jmac645
    Participant

    Hello all,

    I've got my exam tomorrow. Becker added a module on partnerships in May. Anyone know if this is testable now? I watched the lecture but thats about the extent of my studying for it. Don't want to waste time studying for it if I don't have to.

    Also, the new revenue recognition policies. Anyone know how strongly they're testing this already? Heard its not much but wouldn't mind hearing from the community.

    Any help is appreciated, thanks!

Viewing 15 replies - 211 through 225 (of 237 total)
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