[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

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

[NJPRU]

11PM in NJ and I have to work tomorrow! Trying to finish up my 5th chapter for the weekend – going on 14 hours today. :-O and 23 for the weekend. :-O

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

It's 11pm in Boston

I use 365

[jrosen92770]

It's been a good evening of testing. I am up at 5am tomorrow for some SIMS and Gov.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

Is there anyone else in our Q2 family using Jeff's NINJA MCQs for FAR aside from Zubairs who is really pleased with this new product? I wonder what others have to say about this.

For 1,400 MCQs @ $47, it's like $1 for every set of 30 MCQs. (Had to round it off since Hiya 15%-discount is available out there). But it's good only for 3 months. What do you think, guys?

Thanks.

[jrosen92770]

NJ – Did you do all the SIMS in Becker? How long did it take you?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

I got ninja mcq couple days ago and have to say that I am irritated by the fact that I have to scroll to read the whole question and by the calculator too. It was so annoying that I am not sure I can use it. I am sure its content is great though

[NJPRU]

J – I have been doing bits and pieces of them with Gleim. I'm not using Becker this time around.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

8.32 pm here In California 🙂

I have the Ninja Mcq but I am using Gleim and Wiley. I also am doing the old AICPA release questions too. i got copies before the links where taken down.

[Anonymous]

What do they mean by time value of the option?

On December 1 of the current year, Bann Co. entered into an option contract to purchase 2,000 shares of Norta Co. stock for $40 per share (the same as the current market price) by the end of the next two months. The time value of the option contract is $600. At the end of December, Norta's stock was selling for $43, and the time value of the option is now $400. If Bann does not exercise its option until January of the subsequent year, which of the following changes would reflect the proper accounting treatment for this transaction on Bann's December 31, year-end financial statements?

a

The option value will be disclosed in the footnotes only.

b

Other comprehensive income will increase by $6,000.

c

Net income will increase by $5,800.

d

Current assets will decrease by $200.

[Anonymous]

Is it D? The option Derivative has decreased in value due to the time lapsed and its getting closer to the expiration date.

I believe time value of the option means this:-

When you buy an Option Hedge there is a cost associated to it right.. So when you purchased the contract in Nov the cost was 600.

In Dec if you were to buy the same option it would cost you 400.

So basically the option looses its value the close it gets to its expiration date.

In the real world you can buy an option and if you don't want it any more – you can sell if off to another person at a reduced cost due to the time that has lapse between the date of sale of the Option and its Expiration date.

[jrosen92770]

kind of like a discounted note. Great explanation.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

Honestly, what kind of question is this?

Loy Corp purchased a machine in Year 1 when the average consumer price index was 180. The average CPE for year 2 was 190 and 200 for year 3. Loy prepares supplementary constant dollar statements adjusted for changing prices. Depreciation on this machine is 200,000 per year. In Loy's supplementary constant dollar statement for Year 3, the amount of depreciation expense should be?

Seriously? I don't think that a depreciation method that Becker went over? This is one of my issues with Wiley…they go over stuff that has like a .01% chance of being tested.

[Anonymous]

No it's c, they made $3 on each share but lost $200 on mysterious time value

[jrosen92770]

is it 100,000?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

Right that 200 is the 600 that it cost you but now the value is 400 – hence why there is a 200 reduction.

What I don't get is why would we recogn the gain esp when they have not exercised the option. I was going to pick C but was thinking … the option would be exercised in Jan so thats why I picked D because we would have that 200 dollar reduction.

[Author]

Replies