[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

[icanhazcpa]

@finnng72 Dont lose heart, for me the material doesn't really stick until the week before my test. This leads to a great deal of stress for me, but I guess it just doesn't really click for me until I'm going through every section for the last time right before I take my test.

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

Becker Self Study

[LT-P]

Can someone please tell me how to calculate the Unamortized premium/discount? (F5)

- passed all 4 exams on my first try using Becker!

Ethics: TBD

[Anonymous]

2013 AICPA Released Question

A company obtained a $300,000 loan with a 10% interest rate on January 1, Year 1, to finance the construction of an office building for its own use. Building construction began on January 1, Year 1, and the project was not completed as of December 31, Year 1. The following payments were made in Year 1 related to the construction project:

January 1: Purchased land for $120,000

September 1: Progress payment to contractor for $150,000

What amount of interest should be capitalized for the year ended December 31, Year 1?

a. $13,500 b. $15,000 c. $17,000 d. $30,000

Answer is c. $17,000

I thought capitalization of interest was not allowed for land – only for fixed assets that have “discrete manufacturing activity”. Is it only capitalizable when its being done so with the construction of a building?

[That_Oher_Guy]

Need some F2 help for some MCQ's if anyone understands these concepts.

Q1

Hudson Hotel collects 15% in city sales taxes on room rentals, in addition to a $2 per room, per night, occupancy tax. Sales taxes for each month are due at the end of the following month, and occupancy taxes are due 15 days after the end of each calendar quarter. On January 3, Year 2, Hudson paid its November, Year 1 sales taxes and its fourth quarter Year 1 occupancy taxes. Additional information pertaining to Hudson's operations is:

Year 1 Room Rentals Room Nights

October $100,000 1,100

November 110,000 1,200

December 150,000 1,800

What amounts should Hudson report as sales taxes payable and occupancy taxes payable in its December 31, Year 1, balance sheet?

Sales Taxes Occupancy Taxes

a. $54,000 $8,200

b. $39,000 $6,000

c. $39,000 $8,200

d. $54,000 $6,000

Explanation

Choice “c” is correct. $39,000 Sales taxes payable. $8,200 Occupancy taxes payable.

Year 1 Room Rentals 15% Sales Taxes Payable Room Nights $2 Per Room Night Occupancy Taxes Payable

Oct 100,000 Paid 1,100 2,200

Nov 110,000 16,500 1,200 2,400

Dec 150,000 22,500 1,800 3,600

260,000 39,000 4,100 8,200

Why does is claim October has already been paid when the questions says November was paid and also the last quarter of occupancy taxes?

[That_Oher_Guy]

Sorry about the formatting. Tried to clean it up but it doesn't acknowledge the spacing I put in it.

[icanhazcpa]

@tanaya For me, it's easier to just set up an effective interest table for every problem like that. That way, you just take the column that has the amortization of the premium or discount, add it up, then subtract from the original premium or discount amount for the unamortized part. OK it won't show the table right so let me try it this way.

Column 1 – Interest Paid (OG amt x stated rate)

Column 2 – Effective Interest (CV at beginning of period x yield rate)

Column 3 – Applied to prem/disc (Difference between first two columns)

Column 4 – Carrying Value (CV at beginning +- Column 3)

For the carrying value column, I just take the difference and add it if it's a discount because you have to get it up to par by the end, and subtract the premium out. So you'd take that third column and add it up, then subtract from the original premium or discount amount. I think I remember seeing a five column in one of the SIMS so I'm not sure if this is wrong or what. They might split it out into a column for discount then one for premium. But anyway I think this is right, someone PLEASE tell me if it's not.

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

Becker Self Study

[icanhazcpa]

@thatotherguy I had a lot of trouble with this question also, what finally helped me was writing the months out and figuring out when they had been paid. So October had been paid because it was due at the end of November. The others weren't paid until the next year, and the question is asking for December 31 payable amounts. So all the information pertaining to January is a distraction. So you just calculate it based on November and December for sales tax and the whole quarter for the occupancy since that won't be paid for any of the quarter until the next year. Does that help at all? One thing I do for these types of questions that helps sometimes is drawing a calendar and marking on it physically when the money was due then I can look at December 31 and say “OK what was paid by now and what is still outstanding?”

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

Becker Self Study

[icanhazcpa]

@2013CPA Let me know when/if you figure that out, capitalization of interest is on my list of things I don't get, along with deferred taxes :p

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

Becker Self Study

[That_Oher_Guy]

@icanhazcpa

Yea, I see it now. I keep making the mistake of disregarding certain dates in the questions. I need to work on that or it's going to take a huge chunk of points away during the exam.

[ndpendentbw]

Hello all, I don't post often because i try to stay focus…FAR is a killer.

I had a quick question for those of you using the Wiley Test bank. Do you know how to review your practice exam results? I have taken two practice exams and haven't been able to review my errors.

[Having To Eek My Way Thru Life]

@2013 Putting the office building on the land is considered is a basically a land improvement that is capitalized as a fixed asset. The land was financed by the note so the interest will be capitalized to the structure rather than the land. Also, this occurred during the construction period.

If you want to find it in Becker look at page F4-40.

[StephAV]

@ndepdentbw – If you go to the “My Reports” tab, there are tabs that include “progress report” “incorrect questions” and a few others.

I've completed 2 practice tests and I got an 86% on the first one and a 49% on the second one:-( Must keep studying!!! Some of those questions are so freaking tricky!

Oh and my current practice test I selected to do a bunch of research simulations. OMG! I'm horrible at them. You have to really read carefully what they are looking for… I think I might review Roger's advice on the research questions to see if that helps me at all. Just seems like a research question should be easy points!

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]

about to leave work soon…i am GOING to get through 3 chapters of SIMS tonight and do a progress test for all 10 ch. (25 qs)…I'm naming it and claiming it!!

[StephAV]

I typed notes from the NINJA audio for the first 2 chapters and I'm working on mcq from the testbank and taking notes. I started rewriting my lecture notes, then I thought maybe writing the audio would be better… I'm so indecisive. I feel like I keep looking at the stuff from the beginning and I'm not getting to the real meat, the bonds, leases, pensions, etc… Oh so much work to be done. I have 25 days. MUST work harder!!!

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.

[ndpendentbw]

@StephAV Thanks a Million!

embarassed to say I never thought to click on this tab. Sounds like your on your way just keep at it. I have scored 66% and 77%on the practice test. I have a lot more studying to do. Btw, great advice regarding the research simulations, I will make this my next practice test. Good Luck keep pressing!

[Author]

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