[jeff]

FAR Resources:

Free FAR Notes & Audio – https://www.another71.com/cpa-exam-study-plan

FAR 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

FAR Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[lvr21]

How crazy is it that some of us haven't sit for our test yet, and we should find out our scores (if in a NASBA state) next Friday?!

{R: PASSED!! (I passed one!)}
{B: PASSED!! (Halfway there!)}
{F: PASSED!! (1 left!!!)}
{A: PASSED(I am done!!)}

[Amay]

@Ivr I love that! 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

@Ivr I love that! 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Mel]

Aw don't rub it in lvr, i still have to wait until the following Monday to find out my score! But I get you, still think we should be able to get our score at the end of the test.

This score release is going to be more nerve racking than usual since it's my last test.

[Mel]

Aw don't rub it in lvr, i still have to wait until the following Monday to find out my score! But I get you, still think we should be able to get our score at the end of the test.

This score release is going to be more nerve racking than usual since it's my last test.

[Amay]

Bond question! Our favorite 🙂

On March 1, Year 1, Somar Co. issued 20-year bonds at a discount. By September 1, Year 6, the bonds were quoted at 106 when Somar exercised its right to retire the bonds at 105. The amount is material and considered to be unusual in nature and infrequently occurring with respect to Somar Co. How should Somar report the bond retirement on its Year 6 income statement under U.S. GAAP?

a. An extraordinary gain.

b. A gain in continuing operations.

c. An extraordinary loss.

d. A loss in continuing operations.

Explanation

Choice “c” is correct. The settlement price is greater than the face value of the debt and the face value is greater than the book value. Therefore, the settlement price is greater than the book value and a loss would be recognized on the transaction. This loss would be classified as “extraordinary” because it meets the U.S. GAAP criteria.

So do you only compare the “face value” meaning when it was issued at a discount to the 105 retirement price to come up with a loss?

I incorrectly compared the 106 to the 105 and concluded it was an extr. gain.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Bond question! Our favorite 🙂

On March 1, Year 1, Somar Co. issued 20-year bonds at a discount. By September 1, Year 6, the bonds were quoted at 106 when Somar exercised its right to retire the bonds at 105. The amount is material and considered to be unusual in nature and infrequently occurring with respect to Somar Co. How should Somar report the bond retirement on its Year 6 income statement under U.S. GAAP?

a. An extraordinary gain.

b. A gain in continuing operations.

c. An extraordinary loss.

d. A loss in continuing operations.

Explanation

Choice “c” is correct. The settlement price is greater than the face value of the debt and the face value is greater than the book value. Therefore, the settlement price is greater than the book value and a loss would be recognized on the transaction. This loss would be classified as “extraordinary” because it meets the U.S. GAAP criteria.

So do you only compare the “face value” meaning when it was issued at a discount to the 105 retirement price to come up with a loss?

I incorrectly compared the 106 to the 105 and concluded it was an extr. gain.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Also when a question asks for the bond payable amount are you to assume it asks for net of discount? Just did a question that did not mention to calc net of discount and I got it wrong because I left the amount gross and forgot to subtract the discount. I was just thinking about the credit to bond payable which is always the net amount.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Also when a question asks for the bond payable amount are you to assume it asks for net of discount? Just did a question that did not mention to calc net of discount and I got it wrong because I left the amount gross and forgot to subtract the discount. I was just thinking about the credit to bond payable which is always the net amount.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[HeartsMimiCPA]

You compare the bond price (amount you paid) plus the amortized discount to the 105. The quoted market price is a distracter.

AUD - 65, 89!
REG - 70, 89!
FAR - 78!
BEC - 77!

Finally!
Experience 06/30/15
Ethics-Done

VA Licensed 09/15/15

[HeartsMimiCPA]

You compare the bond price (amount you paid) plus the amortized discount to the 105. The quoted market price is a distracter.

AUD - 65, 89!
REG - 70, 89!
FAR - 78!
BEC - 77!

Finally!
Experience 06/30/15
Ethics-Done

VA Licensed 09/15/15

[HeartsMimiCPA]

Someone took my pencil in the library. I'm pretty pissed about it. It was the only one i had! I hate using pen

AUD - 65, 89!
REG - 70, 89!
FAR - 78!
BEC - 77!

Finally!
Experience 06/30/15
Ethics-Done

VA Licensed 09/15/15

[HeartsMimiCPA]

Someone took my pencil in the library. I'm pretty pissed about it. It was the only one i had! I hate using pen

AUD - 65, 89!
REG - 70, 89!
FAR - 78!
BEC - 77!

Finally!
Experience 06/30/15
Ethics-Done

VA Licensed 09/15/15

[teeteenounouche]

Lordy I am having a panic attack, going home and hitting the books (notes), MCQs from 7-midnight…

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[teeteenounouche]

Lordy I am having a panic attack, going home and hitting the books (notes), MCQs from 7-midnight…

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[Author]

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