[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

[lauren725]

UHC – I see you are using the ninja questions. I just purchased them yesterday for a change to becker. Do you know if the questions are any difference in the assessment/ adaptive learning phases? Just curious!

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[HopefulCPA0601]

Happy Tuesday guys!! Working on business combinations and consolidations today 🙂

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[Not a Quitter]

My test in in two days and I'm just realizing I do not know consolidations like I thought I did. Can someone please help?

On January 1, 20X1, Dallas, Inc., purchased 80% of Style, Inc.'s, outstanding common stock for $120,000. On that date, the carrying amounts of Style's assets and liabilities approximated their fair values. During 20X1, Style paid $5,000 cash dividends to its stockholders. Summarized balance sheet information for the two companies follows:

Dallas Style

12/31/X1 12/31/X1 01/01/X1

---

---

---

Investment in Style (equity method) $132,000

Other assets $138,000 $115,000 $100,000

Common stock 50,000 20,000 20,000

Additional paid-in capital 80,250 44,000 44,000

Retained earnings 139,750 51,000 36,000

The combination is accounted for as an acquisition (initiated in a fiscal year beginning after December 15, 2008). What amount of total stockholders' equity should be reported in Dallas' December 31, 20X1, consolidated balance sheet?

A. $270,000

B. $293,000

C. $362,000

D. $385,000

The answer is B. I thought it was A because I though only info on the parent company is to be reported. The answer explanation isn't really helping me. Can anyone explain why we take 80% of what's on Style's books?

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[UHC2005]

@Lauren – No, they're the same questions throughout.

The one difference is that once you get to the adaptive phase, you can use the MCQ button and it gives you a range of questions based upon how the programs believes is the most optimal for you.

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[NJPRU]

Nota – you are forgetting to add the Noncontrolling interest in Styles to your Equity..

Styles has 115,000 equity and you are ONLY requiring 80% of it.. therefore the rest is noncontrolling interest.. 23,000

So, Dallas' equity of: 50,000 C/S, 80,250 APIC, and 139,750 RE is added with the NCI of Style of 23,000 which equates to 293,000.

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

IM GOING TO BE A CPA!!!!!

[Not a Quitter]

Thank you NJPRU- I do get that to an extent…I feel like it's been drilled into my head to ONLY report what's on the parent company's books and I know I've answered questions that followed that rule! I need to figure out on what type of problems thats applicable and which types it's not.

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[NJPRU]

Try this:

Pent Corp. acquired 100% of Subtle Corp.’s outstanding capital stock for $890,000 cash. Immediately before the acquisition, the balance sheets of both corporations reported the following: Pent Subtle

……………………………………Pent…………Subtle…..

Assets Total ……………….$4,000,000 $1,500,000

Liabilities…………………….. $1,400,000 $ 720,000

Common stock ………………$ 2,000,000 $ 620,000

Retained earnings………………$ 500,000 $80,000

Accumulated other

comprehensive income…………$ 100,000 $ 80,000

Liabilities and equity Total…..$4,000,000 $1,500,000

At the date of purchase, the fair value of Subtle’s assets was $100,000 more than the aggregate carrying amounts. In the consolidated balance sheet prepared immediately after the purchase, the consolidated equity should equal:

A. $3,490,000

B. $3,480,000

C. $3,380,000

D. $2,600,000

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

IM GOING TO BE A CPA!!!!!

[Not a Quitter]

Is it A?

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[NJPRU]

No – here it would just be the Parent's Equity..

When you are looking at this problem and they ask you strictly for equity in parent, you should look for the % first. If it 100% you take ONLY the Parent's equity. If it is less than 100% like in the other example above, you would take 1-XX% (less than 100%) of the sub's equity and add that ONLY to the Parent's equity.

For this one, since Pent purchased 100% of Subtle, you only take the Parent's Equity and forget about the subs.

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

IM GOING TO BE A CPA!!!!!

[Not a Quitter]

Ooohhh, I think that's what's I've been missing. Thank you so much! I'm going to go do a bunch of these problems. So the answer is D, right?

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[NJPRU]

Correct!! Good Job!

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

IM GOING TO BE A CPA!!!!!

[Not a Quitter]

I've got a long way to go in 48 hours. Yet, I've been studying for two whole months…I don't know how I just now figured out I don't get some of this stuff!

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[NJPRU]

Same boat. and I ran out of time going through my notes. Tonight and tomorrow will be MCQs until I'm blue in the face!

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

Good Morning!! 24 Hours left need to make it count!

Going to do as many random 30 Mcqs as possible today.

Tomorrow morning – will read notes a few times before the exam which is at 2.30pm for me..

Didn't sleep well too much going on in my mind

[NJPRU]

Good luck Kenada! I believe in you!!

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

IM GOING TO BE A CPA!!!!!

[Author]

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