[jeff]

Welcome to the Q2 2016 CPA Exam Study Group for FAR.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[MaLoTu]

@Dab, here is the wording from the example … I have to write it out because I cannot copy and paste from the ebook for some reason.

Assume Kristi Corp issued a 10% 1000000 bond due in five years. The yield or market rate was 12% and the bond sold for 926395. Bond issuance costs of 20000 were incurred. The effective interest rate on this bond is 12.58%.

They got 12.58 because of the issuance costs, but how was it calculated?

[KJ]

Yes, correct answer is D.

And I hate Deferred Taxes. Why estimated tax payments made not reduced from the the tax expense calculated 280 x 30% = 84,000.

In its 20X1 income statement, Cere Co. reported income before income taxes of $300,000. Cere estimated that, because of permanent differences, taxable income for 20X1 would be $280,000. During 20X1, Cere made estimated tax payments of $50,000, which were debited to income tax expense. Cere is subject to a 30% tax rate. What amount should Cere report as income tax expense?

Incorrect A.
$34,000

B.
$50,000

C.
$84,000

D.
$90,000

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[KJ]

zyx when are you taking FAR?

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[KJ]

What is times interest earned ratio?

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[Anonymous]

@kanwal78: (NI + Interest Expense + Tax Expense)/Interest Expense

[Anonymous]

Has anyone take the 2016 AICPA released ‘Difficult' questions? I just took them and bombed them bad, like less than half right bad! I am kind of freaking out because my exam is tomorrow morning and this does not seem like a promising sign. I was just curious how hard others felt they were. I guess really I am just hoping I have a shot at passing this thing going into tomorrow.

[KJ]

In consolidation when parent does not own 100% subsidiary, when do you add non-controlling interest for subsidiary? Is it only when calculating shareholder's equity?

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[KJ]

Thanks boating!!

I took them today and they were hard but I managed to get 20 correct but I did those once before when they were released last month so maybe that is the reason I got only 5 wrong. I realized one thing when doing these questions, sometimes we overthink and get it wrong.

For example consolidated statements questions I used to get them wrong all the time but I just did a long consolidation MCQ and I wrote what it was asking and then it made it easier to answer. The questions on consolidated are usually long and I used to forget half the stuff it was asking but if you write them down it makes more sense. Thats just me but they are smarter people like (marqzho :-)) who get 90's.

Dont panic, depending on where you are I would say just relax and sleep since your exam is tomorrow. Just review your notes tomorrow before going to exam or listen to audio. I am sure you will be fine.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[KJ]

Boating…you have done well in other exams so I am sure you will be fine. You need to get 75 only and not have to get all the MCQ right. How have you been doing on SIMS?

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[Anonymous]

@kanwal78 – to your question, I also saw a lecture in Wiley that shows you record the non-controlling interest's income in the consolidated IS as well as the NCI's Stockholders' Equity in BS. I will say though in the 2,500+ MCQ I have taken I don't recall seeing anything referencing the NCI income portion.

Thanks for your encouragement!!! Your right, I think I just need to take the rest of the night off and go in tomorrow confident. I also realized I might have overreacted a bit at first and forgot how many questions there were I got 16 right so not as terrible as original thought.

These exams just mess with your head so much!

[Anonymous]

I would say in practice of the SIMS I am about 75% on average – I often feel the NINJA and Wiley SIMS questions are more confusing than the actual exam. I also think I am a little different then most test takers and feel that the SIMS are the easier portion of the exam compared to the MCQs. I am more nervous for these SIMS than all the others because there are so many in depth topics that involve calculations that I am not sure what will be thrown at me, especially with the new DRS being tested.

[MaLoTu]

@kanwal – do you have a specific problem related to acquisition method? NCI is carried on the BS I believe.

[MaLoTu]

boating – if you can get 75% on the actual sims you will pass. I am usually happy if I can get 50% on the sims the first time through, lol.

[KJ]

@ boating..yeah everyone have had different experience with exams. Lot of people said they were too hard, some said they were equally the same. It all depends on each individual learning process and retaining information I would say.

@ MaLoTu…I had one yesterday don't remember. I will post it if I come across one. Thanks anyways!!

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[KJ]

Lol I am yet to see 75% on SIMS for myself. I have not practiced that many SIMS yet . Planning to do them tomorrow.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[Author]

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