[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

[kip_snoodles]

For those using Wiley and Becker, which sections of the Wiley Test Bank match up with Becker F2?

Thanks!

[StephAV]

The chapter on the Statement of Cash Flows and lecture for the Roger course was so confusing and frustrating to me… I prepare the Financial Statements at work monthly. I do a Statement of Cash Flows, we use the indirect method. Roger has this whole multi step process that includes making t-accounts for all the balance sheet accounts and all this other stuff. It just seemed so over complicated to me. I have a worksheet with BOY B/S and current month B/S and I look at the differences. Put those in as debits and credits and they are linked over to my CF Statement outline. I had to keep reassuring myself that I do know what I'm doing. Lol. Surely people don't use T-accounts in real life to prepare their statement of cash flows?? I know in reality my SS is pretty much just like a T-account… I love Roger's energy but I'm not loving his chicken scratch!

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[That_Oher_Guy]

@ Kip. I can't tell you for the test bank but for the Outlines and Stud Guides book, module 9 has a lot of the different revenue and expense recognition topics. I'm not sure where exactly I could tell you amortization is…

[icanhazcpa]

@Steph I also prepare cash flows at work and I can't even comprehend trying to learn them through T-Accounts! Becker just lists what to include in each category.

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

Becker Self Study

[Path To CPA]

Can anyone make sense of (solve) the following for me:

Pickup truck exchanged for a new pickup truck

– Original cost of truck 24,000

– Accumulated depreciation of truck 21,000

– Sticker price of New truck 27,000

– Fair market value of New truck 25,500

– Cash paid to dealer 21,500

Calculate the gain or loss recognized.

I did not include the answer because I don't want to influence the answers that you guys will come up with. Above are all the facts provided by the review material. The answer I'm getting is different than the solution they provided and I want to see if there is a crucial thing that I'm missing or if they made a mistake. Your input is appreciated.

REG: 68, 75
AUD: 80
BEC: 77
FAR: 24, 67, 69, 72, 80 Thank you Lord!!!!

Finally Done! Perseverance is the key to success

NYS Licensed CPA - 2013

[StephAV]

I feel like someone posted this same question… With the answer. I didn't look it up, I just went with my gut…Lol.

Dr. New truck asset 25,500

Dr. A/D old truck 21,000

Cr. Cash 21,500

Cr. Old truck asset 24,000

Cr. GAIN 1,000

Am I wrong? I forget what the rules are on this…

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[Mike1987]

Are these “extra” appendix I cost flow assumptions at then end of Becker F4 important? Is there a lot of focus on this stuff in the Wiley materials for those that have it?

[Path To CPA]

@StephAV

Your answer is what they have as solution but what does not make sense is that if the exchange lacks commercial substance, no gain is recognized unless cash is received. There is nothing in this problem saying that it has commercial substance. Additionally, cash was paid to the dealer, not received.

Who can explain me why a gain is recognized here? it really conflicts with the concept I've learnt.

REG: 68, 75
AUD: 80
BEC: 77
FAR: 24, 67, 69, 72, 80 Thank you Lord!!!!

Finally Done! Perseverance is the key to success

NYS Licensed CPA - 2013

[StephAV]

Well, I had to look up the why, but happy to hear that I'm right.

It says that most transactions will have commercial substance, unless it specifically states that it lacks commercial substance. Does the question state that it lacks commercial substance?

Exchanges with Commercial Substance you always record the gain or loss…

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[Anonymous]

Path to CPA:

Short answer: because it balances the Journal entry 😉

Better answer: Because essentially you're getting a new truck worth 25,500 even though you only “paid” them $24,500 (24,000 cost – 21,000 A/D + 21,500 cash paid) , which results in a $1,000 gain.

[zakahracw]

Does anyone have tips for how to study in the last 2weeks or 10days? I'm using Becker, Ninja notes, and Wiley but not studying the Ninja way. Is it possible to review in only 6 days?

~Z

"Live your Best Life"

[Path To CPA]

@CPA4birthdaypresent,

Thanks for responding. I'm still not convinced just because the determination of gain should be based on the asset given and not the asset received. The review material that I studied explained that to get the gain in an exchange lacking commercial substance, you should compare the fair value of the asset (given) to the book value of the asset (given). Thereafter, you'll divide the amount of cash received by the fair value of the asset (given) to obtain a ratio. If the ratio is more than 25%, all the gain is recognized. If it's less than 25%, you should multiply it to the gain noted above in order to determine the portion of gain to be recognized. I have not seen anything about using the fair value of the asset acquired.

Correct me if I'm wrong. Maybe I totally misunderstood the concept but it's not likely since I used it for many other questions and it worked, except for this one.

REG: 68, 75
AUD: 80
BEC: 77
FAR: 24, 67, 69, 72, 80 Thank you Lord!!!!

Finally Done! Perseverance is the key to success

NYS Licensed CPA - 2013

[Qlad]

I have the same question as ^ zakahracw…i have live class notes too(along with mentioned above) which i am trying to write many times as i go…when i see similar q that appeared on my recent exam, i see that most of them were right…so can't figure out why i did not reach 75..may be bcoz the exam did not get hard/ lengthy…

also want to know…on the sims, while solving one tab…if only 1-2 answer figures r wrong…do they give a 0 on the whole tab? want to kno how to make sims stronger…i don't have many to practice and i know the solutions

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

I think the full gain is recognized because the boot (cash) given is more than 25% of the total consideration transferred….the FMV of the old truck (3,000 plus the cash of 21, 500). 21500/24500 = 88%

You do the proportional share of the gain when it's under 25% and the boot isn't significant. I think. I asked a similar question a few pages back.

[Anonymous]

I guess the root of the issues we're having with this question/solution is…determining commercial substance vs. lack of commercial substance. The solution only holds true if the people creating the solution assumed the exchange HAS commercial substance.

Otherwise, you guys would be right, you would 1st of all, not recognize the gain at all since the boot was paid, and 2nd of all, any gain that would be recognized would need to be prorated.

[Author]

Replies