[jeff]

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

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

[Holly]

3/12 = 25%(1,500,000)

The remainder of inventory included with their shipping costs would be in COGS

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

[Holly]

.25 (what's left in inventory and not sold) * 1,500,000 (total inventoriable shipping costs) = 375,000

sorry I didn't finish for some reason. The other shipping costs would be selling expenses.

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

[aatoural]

thanks. But why are we allocating those percentages?

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

[waffle_house]

Just took my Becker practice exam and got a 79% weighted (73% mcq and 86% SIMS). I know Becker practice exams are known to be difficult but the SIMS were so much easier than I expected. Seems a little misleading.

I should be ready for this exam but I still have 9 days to review weak areas.

[Holly]

We're allocating the 25% because it asked for the shipping costs left in inventory at year end. The only inventory left in year end is 25% of the total, along with their related shipping costs.

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

[Anonymous]

@Waffle, that's awesome! I'm jealous. How long have you been preparing and tell us some details of your review approach? Thanks.

[waffle_house]

@Amor D

I've studied a total of 300 hours my last attempt back in October (I over did it and was burned out by the time the exam came).

After I passed Reg I reset my Becker for FAR and read the book from front to back and wrote my notes on a summary level (just writing what I read was important to me). Also, my current job helped me understand journal entries a lot.

Currently I am going through all of Becker again (mcq and sims) and simultaneously doing cumulative mcq and sims at the beginning of the day and end of day just to keep the material fresh.

Basically I'm over doing it again. I get frustrated when I get easy problems wrong lol. As of right now I need to review Gov and NFP the most and F7.

[mtaylo24]

@aatoural
12,000,000 Purchases – 3,000,000 (EI) = 9,000,000(shipped)/12,000,000 (Purchased) = 75% Shipped
100% (Total Inv) – 75% (Shipped) = 25% EI

25% * 1,500,000 (shipped overseas) = $375,000

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)

[aatoural]

@HRsexton @mytaylo24 – thanks!!

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

[aatoural]

Side Note – Maybe this is me because English is not my first language but they do try to confuse you with their questions.

They could not just say “the cost to demolish a building”

Samm Corp. purchased a plot of land for $100,000. The cost to raze a building on the property amounted to $50,000 and Samm received $10,000 from the sale of scrap materials. Samm built a new plant on the site at a total cost of $800,000 including excavation costs of $30,000. What amount should Samm capitalize in its land account?
a.$130,000
b.$100,000
c.$150,000
d.$140,000

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

[mtaylo24]

^^^Seriously had the same thoughts!!! That's up there with Jigs, molds, & dies. I have no clue what they are talkin about.

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]

I'm confused on Net Operating Loss Carry-forwards. Several questions gave a similar explanation to the one below in the justification of the correct answer:

U.S. GAAP does permit recognition of “net operating loss carry forward” in year of loss, but the deferred asset should be reduced by a “valuation allowance” based on the “more likely or not” test of expected realization. In this case, there does not appear to be enough evidence to support realization. Unless evidence is provided to the contrary, it is generally assumed that an NOL in the current period means that there is a greater than 50% chance that there will be NOLs in future periods. Therefore, a “valuation allowance” should reduce the deferred asset to zero, and result in no increase in net income. Accounting recognition is not given to offers to sell assets because a completed transaction has not occurred.

My issue: If a NOL now means I have to re-value my carry-forward as zero, what happens if GAAP is wrong and I DO earn a taxable profit in one of the next 20 years? Is that carry-forward now unavailable because I revalued it, or can I reverse the valuation allowance and use the benefit?

Anybody know?

Thanks!!

[GiniC]

@aatoural and @mtaylo24 – I've obviously spent too much of my life in male-dominated occupations and households (grew up with a brother but no sisters; had only sons…). I know exactly what jigs, molds, and dies are, they don't faze me at all. It's other things that totally mess me up!

[Namstut]

@aatoural, this question got me! English is not my first language either and I did not know the definition so I had to look it up!

How is the studying going so far?

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[NYaccountingstudent]

For a small stock divdend (less then 20-25%) we use fair market value to debit retained earnings

For a large stock dividend (more then 20-25%) we use par value to debit retained earnings

My question is—if the stock dividend is between 20-25% do we use the fair marke value or the par value??

[Author]

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