[jeff]

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

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

[Sticky Nicky]

question: valuation accounts are used for only deferred tax assets?

[ng3926a]

I believe it's also used with allowance for doubtful accounts.

edit// and by that I mean the concept, ADC is the valuation account.

[Sticky Nicky]

yes i know that lol im talking about taxes though DTA vs DTL

[Anthony]

Took far today. I felt Ninja mcq were pretty damn similar in terms of difficulty compare to the actual exam. Sims were on another ball game. I knew how to solve them..just not enough time even with 1hr and 20 minute left. Must have been poor time management on my part in sims. Research question was like wtf I am suppose find?

People say they can tell a difference between a hard and medium testlet. I honestly couldn't tell a difference even if it hit me in the head.

[mtaylo24]

@StickyNicky I'm thinking they are DTAs only ” Valuation allowance reduces a deferred tax asset. It is recognized if it is more likely thank not (probability >50%) that some portion of the deferred tax asset will not be realized.”

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)

[ng3926a]

Does anyone know how different Becker and ninja mcqs are? I feel like Becker just takes all the released questions for their Mcq bank. What does ninja do?

[ng3926a]

@sticky Nicky yes DTA only. It's a contra asset account just like allowance for uncollectibles.

[norseman88]

Need help on Becker question CPA-05621 Chapter 3 acquisition.

X acquired 100% of Y for 275,000. Carrying value Y assets and liabilities were 450,000 and 200,000, respectively. The FV of Y A&L were 550,000 and 200,000, respectively. Additionally, Y had identifiable intangible assets at the time of acquisition with a FV of 60,000. What is the gain to be reported on X consolidated income statement?

135,000
0
75,000
25,000

answer is A which includes the 60,000 and 75,000 (purchase price below FV assets – FV Liability). Why is the FV of the identifiable intangible asset not included in the FV of total assets? I though identifiable intangible assets are listed on balance sheet as an asset, so 60,000 gain on the intangible and 15,000 gain on another asset.

[mckan514w]

unless someone else has a better answer I would say it was worded like that to try and mess you up…. sorry feeling jaded after working poorly worded questions for so long now.

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

[demarcon]

My MCQs were insane. They asked such small details about disclosures. I felt so prepared going in, and coming out I was asking myself wtf did I study for so long. The SIMS were ridiculous, and unless most of my Government questions were pretest, it had to at least have been 30% of my exam… I had TWO sims on Government and one on IFRS.

[demarcon]

@Nathalia I think Ninja is 100% AICPA questions and Becker has some instructor questions in there, that's why it's so hard.

[ng3926a]

@demarcon thanks for the input. Hahah I guess I'll be spending the night hanging out with government accounting

[ng3926a]

@norseman88 I think if you use the CARINBIG mnemonic you can figure it out pretty easily.

Remember that CAR = equity =assets-liabilities = 250k
I =275k
N= 0
B= 100k (diff btween fv and cv)
I= 60k
G= plug

Dr. CAR 250
CR INVESTMENT IN SUB 275
DR BS ADJ TO FV 100
DR ID INTANGIBLE ASSETS 60
CR GAIN 135

[GiniC]

Can anyone help me see how to identify the fund in this question as an agency fund?

The tax collection fund of XXX County accounts for receipts of taxes levied and collected on behalf of cities and districts within its borders.

[mtaylo24]

@ginic “collected on behalf”

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)

[Author]

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