[Q2] FAR Study Group 2014 - Page 373

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    Topic
  • February 6, 2014 at 9:58 pm #183478
    jeff
    Keymaster

    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

Viewing 15 replies - 5,581 through 5,595 (of 6,668 total)
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  • May 23, 2014 at 11:04 pm #566148
    stoleway
    Participant

    @Jro

    Yeah, I just remembered, I gave some examples on them sometime ago, you can scroll back and see if you will find it.

    Thanks kenada, I just want to pass this thing otherwise I will be of no use…lol

    Im also known for being very jittery on exam day, I hope it doesn't come to that.

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

    May 23, 2014 at 11:18 pm #566149
    Anonymous
    Inactive

    OT – OMG i think my neighbors are going to have a huge party this week—- shemurr i will need to find another place to study.

    May 23, 2014 at 11:21 pm #566150
    Guti
    Participant

    Can you guys help me with the following question? I got it from the 2013 AICPA rleased questions=

    A company had the following outstanding shares as of Jan Year 2=

    Preferred Stock 60 par , 4% cumulative 10,000 Shares

    Common Stock, 3 par 50,000

    On April 1 yr 2, the company sold 8,000 shares of previously unissued common stock. No dividends were in arrears on Jan 1, yr 2, and no dividends were declared or paid during yr 2. Net income for yr 2 totaled 236,00. What amot is basic earnings per share for the year ended Dec 31 yr 2?

    A) 3.66

    B) 3.79

    C) 4.07

    D) 4.21

    FAR-84
    AUD-
    REG-
    BEC-

    May 23, 2014 at 11:26 pm #566151
    Anonymous
    Inactive

    B ? by any chance…

    Cumulative PS Dividend (600,000*4% = 24,000)

    Net Income 236,000

    C/S 50,000 add 6,000 (8,000*9/12)

    May 23, 2014 at 11:28 pm #566152
    jrosen92770
    Participant

    REthinking

    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

    May 23, 2014 at 11:33 pm #566153
    jrosen92770
    Participant

    D

    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

    May 23, 2014 at 11:33 pm #566154
    stoleway
    Participant

    Prefered dividend………..$24,000

    Net income…………………..$236,000

    WACSO………………………..56000shares

    BEPS= $212,000/ 56,000wacso = 3.79

    Answer is B

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

    May 23, 2014 at 11:38 pm #566155
    jrosen92770
    Participant

    What about the dividend for Year 2? Don't you have to calculated it?

    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

    May 23, 2014 at 11:38 pm #566156
    Anonymous
    Inactive

    Please don't laugh too much at me. I think I am loosing it but what does this mean. Bonds are called by a 101 at any time ?

    Like I understand the concept of what needs to be done – i just am confused how to use 101 to determine how much i need to pay them for the retirement of the bonds.

    On July 1, year 1, Belmont Corporation issued for $960,000, 1,000 of its 9%, $1,000 callable bonds. The bonds are dated July 1, year 1, and mature on July 1, year 11. Interest is payable semiannually on January 1 and July 1. Belmont uses the straight-line method of amortizing bond discount. The bonds can be called by the issuer at 101 at any time after June 30, year 6. On July 1, year 7, Belmont called in all of the bonds and retired them. How much loss should Belmont report on this early extinguishment of debt for the year ended December 31, year 7?

    May 23, 2014 at 11:38 pm #566157
    Guti
    Participant

    B is correct. You guys are right, I need some sleep, thank you all.

    FAR-84
    AUD-
    REG-
    BEC-

    May 23, 2014 at 11:39 pm #566158
    Anonymous
    Inactive

    jrosen92770 – No you need to take only the current years Dividends – remember that the last years PS dividends was taken into account for last years ESP.

    May 23, 2014 at 11:42 pm #566159
    Anonymous
    Inactive

    Gian

    I think it will be much easier if you think like this

    50,000 – it was there all 12 months

    8,000 show up in April.. therefore they only are there for 9 months so that is you proportionate out to get 6,000 (8,000 * 9/12)

    Then you using this formula

    NI – PS dividends for Current year ONLY / Common Stock

    236,000 – 24,000 / 56,000 = 3.79

    May 23, 2014 at 11:42 pm #566160
    Kimboroni
    Member

    brainfarts, “call at 101” means the issuer can choose to buy back the bonds at 101% of their face value.

    AUD 84 (1/9/14-Wiley books/TB + free materials)
    FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
    REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
    BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

    Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

    May 23, 2014 at 11:42 pm #566161
    jrosen92770
    Participant

    Nevermind, I had the calculation right, but put D for some reason. Thanks Kenada.

    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

    May 23, 2014 at 11:44 pm #566162
    Anonymous
    Inactive

    Ohh – Okay – let me go and solve it now.. I have been staring at the 101 thinking what do i do with this.. get on the hwy 101 to lala land.

    (Irony I live right besides the Hwy 101)

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