[jeff]

FAR Study Group Links and Resources:

1. NINJA Monthly – $67 FAR Course
2. Free FAR Notes
3. FAR Course Comparison
4. How to Pass FAR (with NINJA)
5. How to Pass FAR (in 20 Days)
6. How to Pass FAR (after Failing)

See Also:

• FAR Study Group
• AUD Study Group
• REG Study Group
• BEC Study Group

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[Mi Chan]

@queenie I suggest you look up Farhat's videos on YouTube, he explains every topic very well!

AUD - NINJA in Training
BEC - 64
FAR - NINJA in Training
REG - NINJA in Training

Gleim

[Mi Chan]

Fsin1328 I am interested in how you are studying using both Gleim and Ninja. Which book do you use primarily?

AUD - NINJA in Training
BEC - 64
FAR - NINJA in Training
REG - NINJA in Training

Gleim

[fsin1328]

@Mi Chan,

I use Gleim primarily and NINJA as a supplement. I like the chapter layout that Gleim provides, this is my second time studying for FAR so I purchased NINJA as a secondary study guide for more MC practice, honestly many questions I see on Gleim are identical on NINJA. NINJA is a great supplement for the “longer “chapters that I need more practice and understanding on.

Hope this helps!
Best of luck

[Akashi]

I agree. I like the Gleim layout as well. I am also studying for FAR, but I have been able to pass BEC, AUD, and REG using Gleim which I will have to do again, as I lost credit due to not being able to pass FAR on time. Anyways, I think that the Gleim layout of practices, study sessions, exams etc is the best of all the other review courses I have tried. I currently have access to Wiley, Yaeger, and Gleim.

[cpaexpert]

Hi there, I am starting to study for FAR. I have done a little bit of studying prior to this but am looking to commit more now. I am using Wiley and would be down to study with anyone.

[BF98]

@Cpaexpert Sure I'd be game I'm using Gleim though.

[Tncincy]

Hi Ninja's, I am joining this group for support for far. I am looking to schedule far in 6 to 8 weeks. Hope everyone is studying hard and good luck.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Parker]

Need some encouragement. I have passed other three exams but my motivation is dwindling and I am drowning in information. Any tips to on how to most efficiently use becker?

AUD - 82
BEC - 91
FAR - NINJA in Training
REG - 87

Keep the faith

[nicholasloprinzi25]

I’m in the same boat as you. Just have FAR left & I failed it by two points about a month ago. I retake it in a couple of days. Your scores have been much bette than mine, but I would suggest switching it up & maybe using Ninja. A chance of scenery might help you out

AUD - 75
BEC - 79
FAR - NINJA in Training
REG - 76

Pushing through one step at a time!

[Tncincy]

Hope study is going well for everyone. I have the accelerated Ninja framework to help keep me on track. I feel a lot better about the materials. I hope to stay on target. I am using eh 4 week plan, but I have enough time to go the 7week plan. So far going well. Study hard Ninja.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[ssibi]

Can someone help me with the question below:

Brass Co. reported income before income tax expense of $60,000 for year 2. Brass had no permanent or temporary timing differences for tax purposes. Brass has an effective tax rate of 30% and a $40,000 net operating loss carryforward from year 1. What is the maximum income tax benefit that Brass can realize from the loss carryforward for year 2?

A. 12,000
B. 18,000
C. 20,000
D. 40,000

Due to the Tax Cuts and Jobs Act of 2017, NOL can be carried forward indefinitely (up to 80% of taxable income). Wiley says the answer is A. Is this still the case or would the correct answer be D?

Good luck to everyone taking audit this quarter!

[stan]

@SSibi: The answer is A (40,000*0.3= 12000).
Here is why:
in Y2 you had a income of $60,000. The maximum loss you can use to offset that income is $48,000 (60,000* 0.8). Because your Y1 loss is only $40,000 (less than $48,000 allowed by law) you can deduct all the $40,000 loss. Therefore the maximum income tax benefit in year 2 is 40,000 *0.3= 12,000

In the side line, Suppose the Y1 loss is 1,000,000 and Y2 income stays the same. You can only deduct 48,000 (80% of Y2 income) against your $1,000,000 loss. That will saving you $14,400 ( 48,000*0.3) in Y2. You will carry a loss of $942,000 (1,000,000-48,000) into Year 3.
Suppose You had a 700,000 as income in Y3. You can only deduct $560,000 (80% of 700k)against your remaining loss that you have carried forward from year 2. Your taxable income in Y3 will be 140,000 ( 700K-560K) and you will carry forward into Y4 a loss of $392,000 ( 952k-560K). And the same bullshit keeps on repeating itself until you recuperate all your loss and then uncle Sam will grab you by the neck again for money. Lol! Just making it stick into the brain that way you can crunch this CPA and make the money!!

Stand

[Hannah]

Hi Everyone!
I am studying for FAR right now and am very nervous about it…I have never been good at accounting. I am planning to schedule my test sometime in August 2019. Anyway, I need help with this problem:

On December 31, 20X3, Roe Co. leased a machine from Colt for a five-year period. Equal annual payments under the lease are $100,000 (including $5,000 annually allocated to taxes and insurance) and are due on December 31 of each year. The first payment was made on December 31, 20X3, and the second payment was made on December 31, 20X4. The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $417,000. The lease is appropriately accounted for as a finance lease by Roe. In its December 31, 20X4 balance sheet, Roe should report a lease liability of

A.$285,300 [7%]
B.$315,000 [2%]
C.$317,000 [7%]
D.248,700 [84%] correct.
I understand the calculations. This seems to be calculating like an annuity due, but from what I can tell from the question, it seems like an ordinary annuity (since the payments are being made at the end of the year). Can anyone explain this?

"Where the loser saw barriers, the winner saw hurdles"

[stan]

Yes, It is an annuity due. In real world most finance leases are annuity due unless otherwise stated. The easy way to understand and remember finance leases is to consider it as the way you bought your first car when you came straight out of college. You went to the dealership and financed your car through Allie Bank. The down payment is your first annuity due right there plus the plus the dealership rip off (just joking) but you have to remember that in a finance lease it is rare to get the finance without a down payment. The down payment will always include the first annual( or month) payment and the remaining balance is financed.

12/31/Y3 10% 100,000 317,000
12/31/Y4 100000 31,700 68,300 248,700
12/31/Y5 100000 24,870 75,130 173,570
12/31/Y6 100000 17,357 82,643 90,909
12/31/Y7 100000 9,091 90,909 (0)

Stand

[Parker]

Halfway through F8 for FAR and testing at the end of the month. I have been doing lectures and all mcq for each module and I am getting exhausted. This is my last test and I know FAR is a beast but is this the most efficient method at this point. Any suggestions would be great.

AUD - 82
BEC - 91
FAR - NINJA in Training
REG - 87

Keep the faith

[Author]

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