[jeff]

Resources:

Free Study Planner + FAR NINJA Notes (Governmental Accounting): https://www.another71.com/cpa-exam-study-plan/

FAR Exam Experience: https://www.another71.com/cpa-exam-forum/topic/far-exam-experience-official-thread

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

[peetree]

YUP! you got it.

I feel like pensions are simplistic as long as you get that relationship between periodic expense and change in plan asset/liability.

Once that knowledge bridge is complete, you almost look forward to a pension question because they are rather simplistic.

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[MCLKT]

Plowing through the material… next up Inventory.

I'm not answering or reading a lot of the detailed questions on here lately, sorry, I feel like it is mixing up stuff in my head. Maybe next week when I am in full blown MCQ SIM mode I'll be able to switch from one topic to the next. Right now I'm too caught up in my own focus area.

I don't know if Phil was supposed to call me, or if I was supposed to call him. But I'm too intimidated to call. So… I may just rework the material on my own and do a set of 30 or so MCQ's. I think it's just this one SIM that requires all of the elims that trips me up. Maybe I'll work through that until it clicks 🙂

HiYa!!!!!!!

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[Anonymous]

I am in love with deferred tax asset and deferred tax liability… <3<3<3

alrighty FAR lovers : here s the quiz and esp peetree

Income Tax

Yr1 2,000 20%

Yr 2 3,000 10%

Yr 3 1,000 10%

Yr 4 (10,000) 20%

Assume company elect to use 2 yr carry back/20 carry forward. more likey there will be no taxable earning in yr 5..Whats is the deferred tax allowance ???

[Anonymous]

Yo MCLKT : keep it up! <3<3<3

[MCLKT]

Has anyone else noticed our study group has 2 even 3 times the amount of activity as the others?!?

We are some Chatty Cathy(s/ies?) LOL

Aw, is anyone taking REG next? I need a study buddy through March!

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[peetree]

I'm taking REG next!!!!

I'll meet you in that thread in about two weeks. 😀

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[peetree]

NAM am I to assume there will be no earnings in year 5 and thereafter or only year 5?

Here goes nothing.

10,000/.20 = 50,000 loss

1,000/.10 = 10,000 income

3,000/.10 = 30,000 income

10,000 NOL carryforward at .20 = 2,000 deferred tax asset.

Dr. Deferred tax Asset 2,000

Dr. Income Tax refund 4,000

Cr. Income Tax Benefit 6,000

I'm starting to think I should have put a valuation allowance towards the 2,000. I'm not sure because I don't know the future!!!!!!

Did I screw up horribly?

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[lbi18]

@Nam, I attempted your question as well! I hope I'm right.

Since you elected the 2-year carryback, there is only $6,000 of a loss remaining after you carry it back 2 years (10,000-3,000-1,000).

Since you do not believe there will be future taxable income, that $6,000 becomes the deferred tax allowance. So, $6,000 x 20% tax rate = $1,200 (the deferred tax allowance).

I could be wrong, but it seems logical in my head.

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[lbi18]

I'm probably wrong in my answer. Maybe @peetree will get it right and be able to explain it – you seem to be pretty good at explaining concepts as it is!

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[peetree]

I don't know man, I can't recall how to handle valuation allowances. I think I'm right on the debit side, but I think I'm missing a credit to valuation reserve. I blame @NAM 😛

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[Anonymous]

@peetree – i am sorry and @lbi18 you got it right!!!

opps i am sorry ,,,coulmn 1 was book income and coulmn 2 was enacted tax rate– sorry peetree : ( i can see where your calculation is going..

So tax receivable for year 3+4 is total 4,000*.10= $400

Dr income tax refundable REC 400

CR tax benefit 400

out of ($10,000) loss , $4,000 is used = left with $6,000 balance that cant be use in the future (6,000* .20) = $1,200 so JE

DR deferred tax 1,200

CR deferred tax allowane account $1,200

PS: i am using enacted rate

also valuation allowance account is not used in IFRS… heheheeh

[peetree]

ohhhh you jerk!

I thought you were trying to trick me with giving me income tax and the tax rate to figure out what the operating activity was!

Nice job @LBI!

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[lbi18]

Thanks! Valuation allowances are tricky, but I think I finally understand them now.

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[peetree]

HIYA MOTHER FUCKERS!

lol, i've been at it too long. Need more coffee

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[peetree]

This next one is for @MCLKT

In Year 2, Ajax, reported taxable income of 400,000 and pretax financial statement income of 300,000. The difference resulted from 60,000 of nondeductible premiums on Ajax's officers' life insurance and 40,000 of rental income received in advance. Rental income is taxable when received. Aja'x effective tax rate is 30%. In its year 2 income statement. What amount should Ajax report as income tax expense-current portion?

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[Author]

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