[jeff]

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

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

[aatoural]

@mckan – I'm glad to see you here. I hope I rocked it as well hahahah.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Holly]

Does anyone have a trick on how to work the questions that ask which depreciation method was used? The information given is percentages for salvage value and loss of its original cost; no dollar amounts. Luckily, I did straight line using $100,000 but had it not been the right answer it would be too time consuming to work this way.

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

[GiniC]

@HRSexton – Can you paraphrase a little more detail?

I would start by quickly evaluating whether or not the percentages look like an accelerated method or not. SL is simplest to calculate and the slowest to reduce NBV, so it is fast to rule out. If you've ruled that out it's one of the accelerated methods, so try a quick SOYD calc sample, and if you can rule that out go for declining balance.

[GiniC]

I'm having a TERRIBLE study day. I keep answering questions wrong for stupid reasons, mostly not noticing a detail in the question. It's not that I don't know the material, I'm just unfocused.

AAARRRRGGGHHH!

[Holly]

Estimated salvage value 20% of original cost at the end of a 10 year life
Sold year 5 for 50% of original cost for a loss
Which depreciation method was used?

That's the question pretty much. The options that are actually dep methods are sum of the years digits, db, and sl.

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

[Holly]

Becker 00149

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

[GiniC]

@hrsexton –

So 20% of the cost means 80% is depreciable. If straight line, half of that (40% of total) would be used up by year 5, so the CV would be 60% (20% salvage + 40% depreciable remaining). Straight line would result in a loss if your CV was 60% and sale price 50%. Without running numbers, declining balance would take off much more in the beginning, and SOYD is almost as fast as DDL – so my fast “educated guess” would be Straight Line. Using that logic, I had the answer in about 30 seconds, so it's fast. Remember, exam strategy is about speed, so if you can rule out one as not a dep method then two more as highly likely to be wrong, you have it!

[mckan514w]

Pension accounting makes me want to punch someone in the face… (that's all for now 🙂 Happy studying today )

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

[waffle_house]

@mckan514w

If you need help with pensions, ask away, I'm no expert but I now have a good gasp on it. (pension expense, funded status)

[mckan514w]

Thanks Waffle! I think the thing that frustrates me with Pensions is I understand the concepts and for the most part the calculations but damn if I don't have the worst time answering the questions 🙂 they seem to be worded so much worse than any other topic- and that's saying a lot- ha.

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

[waffle_house]

For me the tricky part was the SIRAGE and it's components. The amortization of the gain was what got me every time. After reading slower and closer I realize it is actually easy, though the JE's can be tedious since everything you book an expense you have a DTA associated with it.

[mtaylo24]

@McKan514w, Gleim's Pension chapter is on steroids. The ones in Wiley or Ninja do not compare at all. Keep on plugging!

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)

[waffle_house]

@mtaylo24

I have access to Gleim MCQ for FAR, I don't use them for the fact that it is just information overload lol. They are good if you want to isolate a certain topic and do 50 questions on it.

[mtaylo24]

^^^Yeah, I'm wrapping up the course today (finally). At this point, I am just embracing it rather than hating it. I think I have found a way to make the info click, just hoping it does me justice on test day. I do have Ninja MCQ on standyby, but I used it last time and it made no difference. I'm not even sure if I want to bother re-memorizing another test bank at this point. I do know that Gleim is getting ready to roll out a massive update and it looks promising!

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)

[mckan514w]

I have actually found the “information overload” of Gleim to be very helpful (hopefully this will also prove true on test day)- I have realized while going through it I glossed over a lot of topics that I took for granted that I “knew” when I clearly did not know them as well as I thought I did…. Gleim has definitely helped me slow down and concentrate on the concepts as a whole not just on getting through the MCQ's…

That being said Gleim is absolute KILLER that is slowly eroding my brain and I hope when I go back to another test bank like Ninja I will be able to see the difference and not just completely lock up because my brain is dead… ha ha ha ha….

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

[Author]

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