[jeff]

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

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

[Holly]

@waffle_house I'm using Becker but I haven't gotten there yet. Ugh that doesn't sound good for me.

BEC - 79
REG - 85
AUD - 5/27/16

[Holly]

I'm doing a simulation in Becker and I'm using A/P in a journal entry. My amount was marked incorrect because I combined amounts to A/P for $14,000 instead of having two lines of A/P for $2,000 and $12,000. Does anyone know if this is what is expected on the exam?

BEC - 79
REG - 85
AUD - 5/27/16

[waffle_house]

What chapter was the SIM and sim #?

[Stilgoin]

No.More.MCQs 🤕

I am 10 days out. I have done all MCQs in NINJA, watched all Roger Cram vids and took notes, and reviewed some NINJA plus vids. I am trending 80s. I am planning on doing around 150 every day until Sunday, do some light review Sunday, and sims M,T,W. Exam is a week from this Thursday.
I hope it is enough. 😔

I miss my Becker sims, but I am not paying to renew Becker and I’m pissed they even ask after promoting the Becker Promise so hard. Anyway, is there anywhere to buy just TBS for FAR? I wish I had the Gleim ones to practice because I remember them being good in school.

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[mtaylo24]

@Stilgoin, for the Gleim MCQs, I would recommend to find a used book on ebay and work the problems in those. Thats like 600 MCQs (30 x 20 chapters), plus sims. People are letting those go for cheap.

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)

[Holly]

@waffle_house Chapter 2, simulation 1, Task 2, je 2

BEC - 79
REG - 85
AUD - 5/27/16

[wkh1]

Bard Co., a calendar-year corporation, reported income before income tax expense of $10,000 and income tax expense of $1,500 in its interim income statement for the first quarter of the year. Bard had income before income tax expense of $20,000 for the second quarter and an estimated effective annual rate of 25%. What amount should Bard report as income tax expense in its interim income statement for the second quarter?
a.
$6,000
b.
$3,500
c.
$7,500
d.
$5,000
can someone please explain? i dont get it thanks

[mckan514w]

Under GAAP each interim statement is a component of the whole statement- meaning that each interim statement builds on each other until you finally get to the final year end statement. Because of that all the amounts are essentially cumulative.

So In Q2 you had pre-tax income of 20
Plus the Q1 income of 10
For a cumulative pre-tax income of 30- so through Q2 your company has made 30 in pretax income.

30X.25 gives you tax expense of 7.5 however you have already recognized 1.5 in tax expense during Q1 so 7.5-1.5 gives you a Q2 tax expense of 6.

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

[mckan514w]

Why would you not recognize year 4 depreciation if the patent was still “economically viable” during year 4- it wasn't deemed hazardous and removed from the market until the last day of the year?

On January 2, Year 1, Lava, Inc., purchased a patent for a new consumer product for $90,000. At the time of purchase, the patent was valid for 15 years; however, the patent’s useful life was estimated to be only 10 years due to the competitive nature of the product. On December 31, Year 4, the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product. What amount should Lava charge against income during Year 4, assuming amortization is recorded at the end of each year but the pattern of consumption of the economic benefits of the patent is not reliably determinable?
A. $72,000
B. $9,000
C. $54,000
D. $63,000- Correct Answer

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

[AR]

@mckan514w

Since product is withdrawn from market in Y4, all the remaining amount in the patent after Y3 will have to be charged against Y4 income. You can charge that as 9000 amortization expense plus 54000 loss unamortized amount. But the entire 63000 will be a charge against Y4 income.

[Holly]

I have another Becker simulation question. Chapter 2, Simulation 2, Task 6, Question 3. The question says $4 million is spent developing the software once it has reached technological feasibility. I put to capitalize the $4 million, but it was marked incorrect. what am I missing?

BEC - 79
REG - 85
AUD - 5/27/16

[AR]

I had subscribed to 6 free months of access to the NASBA professional literature. I have forgotten my password 🙁 Is there a way to recover my login details? The forgot password link leads to an error.

Also, I have been practicing FAR SIMS from Wiley study guide. Yet to start Ninja SIMS. Are the actual exam SIMS comparable to Wiley? I mean some of the SIMS are True/False type that get done in barely 4-5 minutes.

Thanks in advance.

[Mscfisher]

@hrsexton

Gaap requires r&d be expensed for HARDWARE. Only ifrs allows for capitalization after technological feasibility. Then for software us gaap always capitalization. I find the chart on pg 81. Helpful. Its sooooo much to remember!

[mckan514w]

THANKS @AR that makes complete sense to me…

Okay so random question tying things together– since the valuation of inventory has changed under FIFO, Weighted Avg etc to Lower of Cost or NRV- if last year you did FIFO Lower of Cost or Market and the valuation was for say Replacement Value- because the rules have now changed- would this be considered a change in accounting principles with retroactive application thus the company would need to go back and revalue their prior years inventory to Lower of Cost or NRV?

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

[Holly]

@Mrscfisher I thought it said software. Why? Who knows!!

BEC - 79
REG - 85
AUD - 5/27/16

[Author]

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