[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

[NYCaccountant]

It depends on if the transaction lacked commercial substance or not. Gleim makes the assumption that the transaction does not, while it seems Wiley is assuming that the transaction has commericial substance. Does the question provide mroe information?

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

It depends on if the transaction lacked commercial substance or not. Gleim makes the assumption that the transaction does not, while it seems Wiley is assuming that the transaction has commericial substance. Does the question provide mroe information?

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[kels417]

Unfortunately neither of them give any information at all with regards to whether or not there is commercial substance. I would assume on the exam, they would tell you, right? But thank you for the insight. I always assume the transaction lacks commercial substance unless I am told otherwise.

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[kels417]

Unfortunately neither of them give any information at all with regards to whether or not there is commercial substance. I would assume on the exam, they would tell you, right? But thank you for the insight. I always assume the transaction lacks commercial substance unless I am told otherwise.

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[Anonymous]

Does either mention future cash flows instead of saying commercial substance?

[Anonymous]

Does either mention future cash flows instead of saying commercial substance?

[Anonymous]

Isnt the boot > than 25% so both parties have to consider this a monetary exchange

[Anonymous]

Isnt the boot > than 25% so both parties have to consider this a monetary exchange

[kels417]

They are literally the exact same. Unless @Darcer you see something different? Only difference I see is the corporation's name and one says noncurrent debt and the other says long-term.

GLEIM SETS IT UP LIKE THIS: “Tyson, Inc., uses the calendar year as its reporting period.  During Year 1, it completed numerous property, plant, and equipment transactions.  In particular, Tyson incurred noncurrent debt to build a new warehouse storage facility at its current location.  An unrelated building contractor managed the new warehouse construction project.

Tyson has a policy of capitalizing expenditures with a unit cost of at least $1,000 and a useful life greater than 1 year.  The company prorates depreciation expense in the year of acquisition based on the date of purchase.

Enter in the shaded cells the gain or loss on each of the following dispositions of property, plant, and equipment assets.  A loss should be indicated by a negative number with a leading minus (-) sign.  If the answer is zero, enter a 0.”

WILEY SETS IT UP LIKE THIS: “Sherman Inc. uses the calendar year as its reporting period. During year 1, the company completed numerous property, plant, and equipment transactions. In particular, Sherman Inc. incurred long-term debt to build a new warehouse storage facility at its current location. An unrelated building contractor managed the new warehouse construction project.

Sherman Inc. has a policy of capitalizing expenditures with a unit cost of at least $1,000 and a useful life greater than one year. The company prorates depreciation expense in the year of acquisition based on the date of purchase.

Use the spreadsheet below to calculate the gain or loss on each of the following dispositions of property, plant, and equipment assets. Place your answer in the space provided. A loss should be indicated by a negative number. Enter a negative number with a leading minus (-) sign.”

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[kels417]

They are literally the exact same. Unless @Darcer you see something different? Only difference I see is the corporation's name and one says noncurrent debt and the other says long-term.

GLEIM SETS IT UP LIKE THIS: “Tyson, Inc., uses the calendar year as its reporting period.  During Year 1, it completed numerous property, plant, and equipment transactions.  In particular, Tyson incurred noncurrent debt to build a new warehouse storage facility at its current location.  An unrelated building contractor managed the new warehouse construction project.

Tyson has a policy of capitalizing expenditures with a unit cost of at least $1,000 and a useful life greater than 1 year.  The company prorates depreciation expense in the year of acquisition based on the date of purchase.

Enter in the shaded cells the gain or loss on each of the following dispositions of property, plant, and equipment assets.  A loss should be indicated by a negative number with a leading minus (-) sign.  If the answer is zero, enter a 0.”

WILEY SETS IT UP LIKE THIS: “Sherman Inc. uses the calendar year as its reporting period. During year 1, the company completed numerous property, plant, and equipment transactions. In particular, Sherman Inc. incurred long-term debt to build a new warehouse storage facility at its current location. An unrelated building contractor managed the new warehouse construction project.

Sherman Inc. has a policy of capitalizing expenditures with a unit cost of at least $1,000 and a useful life greater than one year. The company prorates depreciation expense in the year of acquisition based on the date of purchase.

Use the spreadsheet below to calculate the gain or loss on each of the following dispositions of property, plant, and equipment assets. Place your answer in the space provided. A loss should be indicated by a negative number. Enter a negative number with a leading minus (-) sign.”

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[gingercpa]

@Kels, I would go with wiley's answer. In this case the transaction has commercial substance. Because exchange is a truck for a truck.

AUD:78-5/13
FAR:84-10/20
REG:79- 12/5
BEC:Feb
CAL Candidate

[gingercpa]

@Kels, I would go with wiley's answer. In this case the transaction has commercial substance. Because exchange is a truck for a truck.

AUD:78-5/13
FAR:84-10/20
REG:79- 12/5
BEC:Feb
CAL Candidate

[LStevens225]

So I have a question from my Wiley book. It says according to FAS what enhancing qualitative characteristic relates to both relevance and faithful representation? The answer is comparability. Is it all enhancing characteristics? If not, why just the one?

[LStevens225]

So I have a question from my Wiley book. It says according to FAS what enhancing qualitative characteristic relates to both relevance and faithful representation? The answer is comparability. Is it all enhancing characteristics? If not, why just the one?

[kels417]

@LStevens….in the Becker book – Comparability and Consistency are listed as characteristics that apply to BOTH relevance and faithful representation. They call them “secondary characteristics”.

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[Author]

Replies