[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for FAR. 🙂

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

[mtaylo24]

@mcohen1993 Gleim's inventory chapter is currently ruining my life 😉

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[A1lessio]

make sure you know Dollar Value LIFO!

I am incredibly burnt out, just a few more days

AUD (08/02/2016)

[Spartans92]

Thanks, @bond. Another question:
On April 1, Year 2, Hill Corp. issued 200 of its $1,000 face value bonds at 101 plus accrued interest. The bonds were dated November 1, Year 1, and bear interest at an annual rate of 9% payable semiannually on November 1 and May 1. What amount did Hill receive from the bond issuance?

a.
$200,000
b.
$202,000
c.
$209,500
d.
$194,500

So I know its C because it has to be bigger than 202,000 (200 *1000 *1.01) .But Im not sure where the 5/12 is coming from in Becker. I did 9% * 1/2 = .045 *200 *1000 = 9000 for my interest but not sure what to do next to accrued it.

What Becker did was: $200,000 × 9% × 5/12 = 7500 + 202,000 = 209,500

BEC- PASS

[mcohen1993]

If you count the months (finger method for me) from November to April “1”, you get 5 months. Becker and the Ninja questions throw these tricks out it seem and you will inevitably count an extra month or one less.

REG: 91!!
BEC: 80!!
AUD: TBA
FAR: TBA

In the order I plan to take the exams.

[waffle_house]

I have a question about “real loss” and “artificial loss”. This is a question on the Becker SIM in R5, second set of Sims question 1.

Sale of furniture with a remaining useful life of 9 years. The lease is a capital lease for 7 years, with a present value of $68,000. The furniture has a fair value of $70,000, carrying value of $65,000, and is sold for $58,000.

a. Determine the amount and type of loss.

Answer: Loss $7,000 & Artificial

Okay I thought it would be 12k since selling price is lower than the FV.

Also, what about the real loss? Why wasn't that the answer instead of artificial????

Can someone enlighten me. Becker doesn't explain

[A1lessio]

Spartan & mcohen – I keep getting these wrong. So he issued the bonds in between periods, the buyer of the bonds has to payback the interest not earned (5 months). My question is do we always multiply the % by the face of the bond?

AUD (08/02/2016)

[waffle_house]

@ Alessio

Yes if issuing bonds between periods you would get the accrued interest by (face amount x stated rate x periods incurred) and you will add that to the bond proceeds (premium or discount). Easy right?

[Spartans92]

wait, so if its semi-annual why dont we use 4.5%? Half of 9.. I thought Becker did something like that in the lectures. Ugh. But I guess I'll go with Waffle's formula ^^. Thanks guys!

BEC- PASS

[mcohen1993]

It's not a half year. It's broken down into the months. When in doubt break down, always do rate times months/12

REG: 91!!
BEC: 80!!
AUD: TBA
FAR: TBA

In the order I plan to take the exams.

[waffle_house]

When calculating interest on anything use the months incurred. Semi annual is the same as 6/12. If bonds are issued in (April 1 Year 2) but are dated (Dec 1 Year 1) then you would calculate accrued interest using (face amount x stated rate x 4/12) that would give you the interest. Its a lot easier than you think.

[Cjsr]

@Spartans92 That 1/2 thing you're remembering, maybe from doing the amortization of discount/premium with semiannual payments?

BEC. 83. 9 Jan 2016
REG. 83. 30 Jan 2016
AUD. 92. 27 May 2016

Becker FastPass with in-class videos

[GiniC]

@HRSexton – I'm taking FAR 3/9 (3/10 if a seat opens up). Not the same day, but we'll likely be on about the same study schedule!

[GiniC]

Sheesh – offline for one day, and there were 65 posts!!!

[waffle_house]

Man I feel like I have a good grasp on F1-F5 in Becker (this is my second attempt at Far, 72 first try). But damn some of these SIMS are time consuming… Also, F4 & F5 optional questions are tough as hell, lol anyone with the same experience?

[Spartans92]

@cjsr, haha thats it.. Thats what I was thinking which is completely different (effective interest method). LOL. Oh god, I'm not in a good shape. Yep, Waffle think that formula helps a lot. Now I know why I got this other question right.. I got it right for the wrong reason. Yikes!

@Waffle, I got killed by F4 Optional. Got a 50% 🙁 F5 I'm doing much better.. got 72% LOL. Not great but improving. off to F6 now.

These Becker questions are much more time consuming than I hope. I only work 30 MCQ on ninja so Far. Really wanna do more but gotta push through F6 and F7.The Sims are very helpful!! I didnt work through all F4 Sims but I really think they are better than MCQ.

BEC- PASS

[Author]

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