[Porma Fierles]

Hey, I have a 67 on the specific transactions category right now. Any advice for how to get a grip on the broad material in the category? Thank you.

[taxgeek83]

I struggled there too when I took FAR. The best advice I can give is just to hammer the MCQs in that section until the concepts stick. Do you have the Ninja MCQs? If not, I'd get those. The program breaks down each CSO into subsections, so you can see which part of “specific transactions” you're having the most trouble with, and study up on that. Good luck! 🙂

[Porma Fierles]

Yeah I have Ninja MCQ, their specific transaction MCQ are pretty super hard.

[Mike J]

My advice is two-fold.

Put the solutions in your own words.

Closely related, wherever possible write the journal entr(IRS) to answer the problem. BUT, do not just memorize a bunch of journal entries. Think about what you're doing.

Start with the easiest. Are you paying (cr) or receiving (dr) cash? Are you receiving (dr) or getting rid of (cr) an asset?

Then, sort of solve for x. Plug in what your solving for.

If you remember that there is more interest with bond discount, the int payment journal entry is DR Int Exp (CV x mkt % — expenses are usually debit bal) CR Discount (plug) CR Cash (never changes — face x stated rate). Here, there won't be another account needed to balance with Cash.

It can get a little complicated with gain recognition rules tho. THOSE you have to memorize. eg Lease Sales back and nonmonetary exchange that lacks commercial substance.

But you just have to think logically about what you're asked.

[Porma Fierles]

Thanks for the advice.

[Author]

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