[jeff]

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

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

[ng3926a]

I definitely didn't know the jist of every topic when I took the exam the first two times.. Like until last week I had no idea what the cost and par method were for treasury stock and the methods for nonmonetary exchanges … I'm an idiot and didn't take this exam seriously until now. Though obviously I won't admit that to my bosses since they've paid for every retake…

So if I can get a 66 with barely knowing the the “big topics”, I'm sure you'll pass 🙂 Good luck!

[Anthony]

Have about a week left and this is my first section.. went through CPAexcel and now on Ninja mcq for the final review. Currently average of 79% and trending about 89-87ish with about 2.7k questions done and 350 or so that I haven't seen. Not really losing motivation of anything..just very nervous.

[Tarheel83]

I wouldn't be too nervous. It sounds like you should easily score in the 80s on exam day. I think a lot of my problem has been not doing enough repetition of MCQ's and I have passed AUd with a 78 and have had numerous fails in the 71 to 74 range.

Honestly, I think that you will do fine with that trending score.

[Tarheel83]

Also, I don't think I've ever gone in to exam day hitting that many MCQs with that kind of trending range.
Again, that's one of the things I plan to change as I retake BEC in March.

[monicasanta]

HELP!!!

When a deferred tax asset is more likely than not NOT to be realized, we use a valuation allowance account. At the same time, will it also decrease asset and increase f/s income tax expense??? Why will the tax expense increase?

I don't think Becker textbook talks about this…but it was in the simulation…

[GiniC]

I remember getting awfully confused by that in my live class, but the instructor was trying to make up time and didn't give me anything that really made sense to me. Look at the example on page F6-40, it shows the JEs. When you reverse the DTA with a credit, the offsetting entry is a debit; debits are expenses, not benefits/gains/income, so I guess they switched the name to expense.

That's the best explanation I have for it. Anybody else?

[ng3926a]

Regarding sales-leaseback, according to Becker you can use either the lease term years or PV of lease payments to calculate whether minor, middle, or major. What if one calculation tells you it's minor (less than 10%) and the other tells you it's middle(10-90%). Which one do you choose?

[mtaylo24]

Correct, you debit expenses credit revenues in your P & L. It is no longer a tax break (i.e. unused credit, NOL carryforward) so you have to expense it…

Gleim gives us:

Dr. Income Tax Expense
Cr. Deferred Tax Asset – valuation allowance

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]

@nathalia Gleim doesn't give us an option for lease term, just PV/FV of pmts. It just says:

1.) minor = PV of least pmts < 10 % of fv of lease property or
2.) more than minor (>10%) but less than substantially (<90%) = 10% of FV < PV of lease pmts < 90% of property's FV

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)

[Spartans92]

Hey guys! I will be back in here in a few weeks. Man I was really hoping not having to take the new version, moreover, waiting for 3 months but guess that will happen. I dont even know if I can pass FAR. I did worse than I did before. FAR is such a pain in the A$$!

BEC- PASS

[mtaylo24]

Need help w/ this deposits question. The answer is B (600,000 X 40% X 1/2 year), but I can't understand where the half of year is coming from. My brain won't let me process the blob of text answer explanation that Gleim provides.

Dunne Co. sells equipment service contracts that cover a 2-year period. The sales price of each contract is $600. Dunne’s past experience is that, of the total dollars spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Dunne sold 1,000 contracts evenly throughout the year. In its December 31 balance sheet, what amount should Dunne report as deferred service contract revenue?

A. $540,000
B. $480,000
C. $360,000
D. $300,000

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)

[Cjsr]

@mtaylo24, I think it's because it says the contracts were sold evenly over the year. So on average, each contract has been in effect only half a year. So take 40% of that half year.

To prolong the LCM vs LCNRV discussion, or maybe someone already said this, could we say that “market” IS now defined as NRV for FIFO? Hence they can use either term to mean NRV for FIFO?

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

Becker FastPass with in-class videos

[monicasanta]

help please ..quick question

In pension journal entry, when we record the contribution to the pension plan, in terms of pension benefit asset OR liability, does it depend on BEGINNING of the year status, or END of the year status (overfunded/underfunded)??

[Holly]

@monicasanta which question are you asking about? I sent Becker a question and will copy their answer if it's the same.

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

[mckan514w]

Oh crap @Spartan- sorry to hear that 🙁 hang in there- YOU WILL pass it next go round!

@monicasanta- If I am not mistaken you are using the PBO for the year- so you are required to pay in the PBO then you actually pay whatever amount and the difference is your Asset/Liability- i.e. whether the plan is over or underfunded.

Someone please correct me if I am wrong- Pensions still give me a hard time.

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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