[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

[0506597]

I have FAR last day of extended testing window. I refuse to take this test again!

AUD-PASS
BEC-PASS
FAR-PASS
REG-PASS
I'm done!

Yeager-AUD; Rogers-FAR, BEC, REG; Wiley Test Bank, Ninja Notes, Audio and Flashcards

[Anonymous]

Eliabraham, I used Becker and supplemented with the WTB. Unless I'm missing something fundamental, my exam seemed rather straightforward. Not that there weren't tricky questions, but the topics seemed consistent with what I studied with Becker. And as was the case with REG and BEC, I did have a couple of questions on things covered in the WTB that I didn't remember Becker touching on. I guess I'll know in November if my process worked or not…

[Anonymous]

Eliabraham, I used Becker and supplemented with the WTB. Unless I'm missing something fundamental, my exam seemed rather straightforward. Not that there weren't tricky questions, but the topics seemed consistent with what I studied with Becker. And as was the case with REG and BEC, I did have a couple of questions on things covered in the WTB that I didn't remember Becker touching on. I guess I'll know in November if my process worked or not…

[Kenada]

Awesome 0506597, perhaps we can work together for FAR on another 71. I am set for Nov 30th but if I feel i am not ready I will do a push back to Dec 6th as well.

FAR 05/27/14; 786/110 - Done !

[Kenada]

Awesome 0506597, perhaps we can work together for FAR on another 71. I am set for Nov 30th but if I feel i am not ready I will do a push back to Dec 6th as well.

FAR 05/27/14; 786/110 - Done !

[lucretia123]

I figure I'm missing something in this question but the answer of 5 years does not make sense to me. If the lease is for 5 of 6 years then that's 83% of the economic life which is greater than the 75% requirement for a capital lease so why wouldn't the asset be depreciated over 6 years? I know I have seen other questions where the asset is a capital lease and is depreciated longer than the lease life. I'm hoping someone can point me in the direction of the fact that I'm missing:

Douglas Co. leased machinery with an economic useful life of 6 years. For tax purposes, the depreciable life is 7 years. The lease is for 5 years, and Douglas can purchase the machinery at fair value at the end of the lease. What is the depreciable life of the leased machinery for financial reporting?

Options: Zero/Five/Six/Seven

Answer per software is: Five which is the lease life

Thanks

BEC - Passed AUD - Passed REG - Passed FAR - Passed
It feel surreal to be done with the exams! I think it is still sinking in.

[lucretia123]

I figure I'm missing something in this question but the answer of 5 years does not make sense to me. If the lease is for 5 of 6 years then that's 83% of the economic life which is greater than the 75% requirement for a capital lease so why wouldn't the asset be depreciated over 6 years? I know I have seen other questions where the asset is a capital lease and is depreciated longer than the lease life. I'm hoping someone can point me in the direction of the fact that I'm missing:

Douglas Co. leased machinery with an economic useful life of 6 years. For tax purposes, the depreciable life is 7 years. The lease is for 5 years, and Douglas can purchase the machinery at fair value at the end of the lease. What is the depreciable life of the leased machinery for financial reporting?

Options: Zero/Five/Six/Seven

Answer per software is: Five which is the lease life

Thanks

BEC - Passed AUD - Passed REG - Passed FAR - Passed
It feel surreal to be done with the exams! I think it is still sinking in.

[gingercpa]

lucretia, just took FAR today so fresh in my mind.

To recognize a capital lease 1 of 4 criteria must be met.

1. Title Transfer

2. BPO

3. 75% of estimated useful life

4. MLP is equal to 90% or more of fair value.

If you meet either #1 or 2 then depreciate the asset at useful life. If you don't meet 1 & 2 but meet either 3 or 4 then depreciate the asset at shorter of useful life or the lease term and ignore any salvage value.

In your case you don't have any info about 1 & 2. Therefore only thing is to be taken into consideration is 75% of the life of asset which is shorter (useful life or lease term). And in this case its 5 years and that will be your depreciable base.

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

[gingercpa]

lucretia, just took FAR today so fresh in my mind.

To recognize a capital lease 1 of 4 criteria must be met.

1. Title Transfer

2. BPO

3. 75% of estimated useful life

4. MLP is equal to 90% or more of fair value.

If you meet either #1 or 2 then depreciate the asset at useful life. If you don't meet 1 & 2 but meet either 3 or 4 then depreciate the asset at shorter of useful life or the lease term and ignore any salvage value.

In your case you don't have any info about 1 & 2. Therefore only thing is to be taken into consideration is 75% of the life of asset which is shorter (useful life or lease term). And in this case its 5 years and that will be your depreciable base.

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

[lucretia123]

Thank you GingerCPA – I don't recall reading that distinction but its an important one. I'll be sure to go back and review that section more closely. I was driving myself crazy.

BEC - Passed AUD - Passed REG - Passed FAR - Passed
It feel surreal to be done with the exams! I think it is still sinking in.

[lucretia123]

Thank you GingerCPA – I don't recall reading that distinction but its an important one. I'll be sure to go back and review that section more closely. I was driving myself crazy.

BEC - Passed AUD - Passed REG - Passed FAR - Passed
It feel surreal to be done with the exams! I think it is still sinking in.

[gingercpa]

I am using Roger so its in his textbook. And also he mentions it in the lecture.

Goodluck in your exam.

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

[gingercpa]

I am using Roger so its in his textbook. And also he mentions it in the lecture.

Goodluck in your exam.

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

[Monir]

since 1 & 2 is not given , I would go for 3 & 4 cretria

[Monir]

since 1 & 2 is not given , I would go for 3 & 4 cretria

[Author]

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