[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for FAR. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your FAR exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

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

[DeterminedCPAer]

Hey @cruzer what's the difference between enhanced SIM and regular SIM? And to confirm, the DRS is like a regular SIM except you have a bunch of documents to read and pull relevant data out to solve the problem. The problem could be a JE that you need to find correct amounts for each account or just calculating numbers?

[QueenCPA]

Quick question,

When calculating depreciation under Capital Lease, with TT or BPO, do we still subtract the Salvage value..

I just watched an old roger video that said we shouldnt take it out

But beckers calculation shows them taking the salvage value out first.

Please help 🙂

[Wannafree]

QueenCPA ,can you post a question then I will try because residual value or salvage value depends upon scenarios.Lessee or Lessor ,Guaranteed or not like that.Please post example problem and then I will try.

[Cruzer]

Diff between DRS and enhanced SIM is that a DRS gives you a document already filled out and asks if you should leave or change the texts in the document, hence the name Document Review Simulation (think like a sr accountant or a manager reviewing a staff's work). An enhanced SIM is where multiple docs are given and you have to read through them to see how those docs would be incorporated to answering what they are asking. My understanding is that each document there is key information in it that is used to answer the simulation.

[Radez]

@QueenCPA – ASC 840-30-35-1, if you have access to the FASB codification, discusses this treatment. With a Title Transfer or Bargain Purchase Option, a capital lease is amortized in accordance with the lessee's normal depreciation policies. To me this implies that if you would ordinarily consider the salvage value, you would in this case as well.

Where there's no TT or BPO, the only real difference is that instead of the useful life, you're using the lease term, and the residual value is what the value of the asset is at the end of the lease.

[abig]

For the people passing this while working full time, what is your secret? I've been doing this for a month and a half and am 6 modules in and have zero confidence in what I've learned.

[Accountingbeans]

Can anyone tell me what it means to “draw on a capital account?” Does that mean withdraw your own funds? Which would have no effect on income I guess? (based on the context of the MC I saw it in)

Newbie
BEC- August 31

[DeterminedCPAer]

@accountingbeans

The last time I can remember where I head that was for REG when they were talking about the tax treatment for partnerships.

For REG it meant you were withdrawing money from your capital account at the partnership. Basically your money you put into partnerships plus earnings

[rahil82]

Hi CPA Gang,

I just started studying for my Far exam, I purchased Rogers. It's almost 3 weeks. Anytime I study and answer the questions I feel bad bcz I know I know nothing; even though I studied.

I am working full-time as an accountant at Law Firm; After work I come to the library and study but I am not doing good in these 3 weeks.

Can you please advise me if you guys taking rogers and what is the best way for you to understand the material?
Thank you so much for your help in advance.

[rahil82]

Hi CPA Gang,

I just started studying for my Far exam, I purchased Rogers. It's almost 3 weeks. Anytime I study and answer the questions I feel bad bcz I know I know nothing; even though I studied.

I am working full-time as an accountant at Law Firm; After work I come to the library and study but I am not doing good in these 3 weeks.

Can you please advise me if you guys taking rogers and what is the best way for you to understand the material?
Thank you so much for your help in advance.

[yari_cookie]

Stressing out….exam Aug 31 and still have a lot of material to go through. I'm having the temptation to reschedule but not doing it! Taking it however I can the worst that can happen is that I have to retake it… right? I'm also working full time 🙂

[QueenCPA]

Help 😀 !
At its date of incorporation, Glean, Inc., issued 100,000 shares of its $10 par common stock at $11 per share. During the current year, Glean acquired 30,000 shares of its common stock at a price of $16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of $12 per share. There have been no other issuances or acquisitions of its own common stock. What effect does the reissuance of the stock have on the following accounts?

A decrease in both retained earnings and additional paid-in capital

OR

A decrease in retained earnings and no effect on additional paid-in capital

Can someone please explain why the second option is right, I thought the amount of loss will initially be reduced by additional paid in capital before reducing retained earnings.

[hopingtogetFAR]

@queenCPA because the cost method is used there was no APIC account set up for T/S. Therefore, it is a direct reduction to RE. You are only able to reduce APIC-T/S if a balance has been previously recorded. Hope that makes sense. I can illustrate journal entries if that would help more.

[DeterminedCPAer]

How far into your studying are you @yari_cookie? If you're more than half way, I think you should be fine. One thing I'm dealing with is forgetting stuff because I stretched my studying out. You got this!

[DeterminedCPAer]

Hey @abig, when is your REG exam again? For me, it was just redoing the problem until I got it correct and trying to understand why I got it wrong. There are still areas where I am not comfortable with and just cant seem to understand (like intercompany eliminating entries) but I am just accepting that.

I also try to talk out loud to myself and try to remember stuff that I learned. Some people like writing it down, maybe that can help you too?

I hope this helps.

[Author]

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