[jeff]

FAR Resources:

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

[me an]

Hello just a quick clarification for one of the MCQ'S in F2

Brill Co. made the following expenditures during the current year

Cost to develop computer software for use in Brill's general mgt. information system $100,000

Costs of market research activities $75,000

What amount of these expenditures should Brill report in its current year income statement as research and development expenses under US GAAP ?

a. $175,000

b. $100,000

c. $75,000

d. $0

Becker says choice ‘ d ‘ is correct, but I think its choice ‘ a ‘.

Someone please help me out!

[Jpgrocho]

@ Me an

I am no genius at this but….. I believe choice D is correct because the computer software being developed is for “internal use” and therefor it is not a part of R&D. However, I think that if it was not for internal use and was going to be sold, then it would be a part of R&D if before technological feasibility. If after feasibility it would be capitalized.

Secondly, to my understanding…. During my studying, I am going in with a mind set that when ever I see market research involved with an R&D question that its not included. Not sure if I understand why this is. On page 18 of chapter two of Becker it specifically states that marketing research is an item NOT considered R&D.

I'm not sure if I was any help but hey!!!! I tried!

10/03/12 AUD- 91!!!
12-07-12 BEC- 75!!! (Half way)
01/18/13 REG - 68, 78.
02/28/13 FAR -68, 65 11/6/13 PLEASE!!!!
Using Becker Self Study 2012

[Qlad]

does anyone has a easy way to memorize the exchange rates to be used in translation and re-measurement for I/S and B/S….i keep getting confused….

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

[Tncincy]

@Jpgrocho,

Your explanation about R&D is correct, plus if the focus is research then the research should be aimed at the discovery of NEW knowledge or to improve an existing product or process. I think these would also be key words to indicate this is not a normal or internal or ordinary process.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[LT-P]

@Qlad: I just think of it like ..

1) Income Statement: Weighted-Average %

2) Balance Sheet – MONETARY: Current %

3) Everything else: Historical %

I don't think there's any easier way to look at it but breaking it up into only 3 lines helps for memorizing.

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

Ethics: TBD

[LT-P]

@icanhazcpa thanks so much! I didn't know you have to actually write out the whole table so I was looking for a formula.

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

Ethics: TBD

[mypetmeatball]

Thank you F7 for being the first module that doesn't make me want to jump off a bridge.

[icanhazcpa]

@tanaya If it's just a year or two and you can kind of visualize what's happening, you don't have to necessarily do the whole table. Just writing it out a couple of times might be enough. But if it gets complicated it's hard to keep it straight for me without the table.

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

Becker Self Study

[me an]

@Jpgrocho,

Thanks a ton!!! Got it now….

[Mike1987]

@Me an, I do not have this question handy. Do you see anywhere in the explanation that indicates that costs incurred before preliminary project state are not expensed as R&D? I'm not seeing the Becker text specifically saying whether it is R&D or not.

[mjp44]

Are the costs for razing a building capitalized as land or building costs? I always forget this and I am wondering if there are circumstances when it could be included in either account. Along the same lines, where do we include proceeds from salavaged materials?

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[Anonymous]

@mypetmeatball – Agreed on F7!!

[Anonymous]

@mjp44

General Rule: Land = all costs before the DIGGING OF A HOLE; Building = all costs beginning with the digging of a hole

razing a building = demolishing a building (no digging involved)

That being said, razing a building is included in the cost of land, which would be netted against the proceeds from salvaged materials.

Example:

Land : 10,000

razing building: 20,000

Proceeds from sale of materials: 5,000

“excavation” for new building: 30,000

Total cost of land = 10,000 + 20,000 – 5,000

= 25,000

Total cost of building = 30,000

Hope this helps 🙂

[Qlad]

i am getting into that terrible mode before the exam that i always get into…feeling i will not pass 🙁 …only 4 days to go ….i am feeling terrible…not able to pass this and still three more to go …how will i ever be done?….feeling so discouraged…don't know how to gather myself……what study plan shud i have for these four days?…if i start doing one topic…i feel i must do the other…..please suggest how to use my time at the end when exam is so close…

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

[Anonymous]

Hey Qlad

Try not to stress too much. If you've stuck to your study plan this long you're probably more prepared than you think. If I were you I would use this time to do a practice test ASAP. Then evaluate your scores from that and go forward from there. Rework your weak areas until you've got them down, then go and do MCQs like crazy.

Good luck!

[Author]

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