[jeff]

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

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

[mckan514w]

@spartan- essentially your unamortized bond discount is the amount of the discount that has not yet been amortized… so you would subtract the amortization out of the discount… the easiest way I think to illustrate it is through your Journal Entries

So you have
DR Cash 706.5
DR Discount Bonds Payable 43.435
CR Bonds Payable 750

First interest payment you have

DR Interest expense 35.33
CR Cash or interest payable 31.875
CR Discount on bonds Payable 3.45

Thus your unamortized amount would be DR Discount 43.435 CR Discount 3.45 or 40.035

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Spartans92]

haha. That helps so much ^^ Dang mckan, u r gonna kill it this time! 🙂

BEC- PASS

[mckan514w]

LOL doubtful spartans- I did bond work for 10+ years so if its the ONE chapter I feel fairly confident on…

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Spartans92]

ey lets hope you get plenty of them.. I struggled with them my first go and that didnt turn out great haha and I hope I dont see that many of them. I love Govt./NFP though. Numbers aint my thing, my co-worker/friends asks why I chose accounting LMAO.

BEC- PASS

[Spartans92]

In Year 2, Ajax, Inc. reported taxable income of $400,000 and pretax financial statement income of $300,000. The difference resulted from $60,000 of nondeductible premiums on Ajax's officers' life insurance and $40,000 of rental income received in advance. Rental income is taxable when received. Ajax's effective tax rate is 30%. In its Year 2 income statement, what amount should Ajax report as income tax expense-current portion?

How would I do the JE for this? Would it be:

DR: Income Tax Expense 120,000
DR: DTA 12000
CR: Income Tax payable 120,000
CR: Inc. Tax benefit 12,000

It didnt ask but there would be DTA because the 40k is taxable now so future tax deductible? the 60k will be Perm difference added back to book? So the total tax expense would be 360,000 *30 % = 108,000 0r 120-12.. Im lost.

BEC- PASS

[A1lessio]

Spartan – that looks correct. I redid the 68 DTA and DTL questions today scoring 69%.

AUD (08/02/2016)

[mcohen1993]

Hey everyone, taking my exam tomorrow. Wish me luck please and good luck to all of you.

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

In the order I plan to take the exams.

[Spartans92]

Thanks A1lessio, I only did the ones I got wrong and I scored a 52% 🙁 Some of them are just outrageously difficult. There so much I dont even know how to possibly pass this thing. By the time I get EPS and CF down I feel like I'm forgetting Contracts and bonds.. Then I try going back and I forget other stuff. I just dont know how to handle this DANG test.

Sometimes I think the AICPA need this break FAR into 2 section..

BEC- PASS

[Spartans92]

@mcohen, best of luck to you!! Im taking mine in a few days :/ Im just glad to have it over with.. pass or fail

BEC- PASS

[Spartans92]

Dang.. I feel like I'm the only one 🙁 sorry for bombarding this board. My question is how do I know which one is net of tax and which one isn't.

A firm has basic earnings per share of $1.29. If the tax rate is 30%, which of the following securities would be dilutive?

a.
Ten percent convertible bonds, issued at par, with each $1,000 bond convertible into 20 shares of common stock.
b.
Seven percent convertible bonds, issued at par, with each $1,000 bond convertible into 40 shares of common stock.
c.
Six percent, $100 par cumulative convertible preferred stock, issued at par, with each preferred share convertible into four shares of common stock.
d.
Cumulative 8%, $50 par preferred stock.

BEC- PASS

[mcohen1993]

@Spartian

Dividends paid are not tax deductible so you do not net with tax. Interest however is so you do (1 – tax rate) for numerator.

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

In the order I plan to take the exams.

[mtaylo24]

I'm still on inventory. This is hell smh! Gleim users beware of chapters 7 and 8 (and 12, 13 ,14)

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)

[mtaylo24]

Something about this one isn't clicking for me. Why use C rather than A? Thanks

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)

[GiniC]

Spartan, you're not alone – but I'm having work challenges. For some strange reason they want me to go there and do stuff!!! Next week will be hell – I need to cover leases and bonds, but have to be in the office more time than usual. I'm hoping a lot of it comes back from my classes easily…

[mcohen1993]

Don't even worry about it. None of Ninja's Q's had anything like that come up. I'm not trying to advertise for them, but I used their questions for my other exams and had no troubles. Good luck.

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

In the order I plan to take the exams.

[Author]

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