[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

[NJtax88]

@titleist … If you had over an hour left why wouldn't you try to use the research literature to look up what you weren't sure on??

[Titleistg0lfer]

@NJtax I did, I actually had about 1.5 hours left and used the AL for over 20 minutes to try to find some of the items, but I ended up just spinning my wheels since it was such small little details and would be very hard to find.

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[MaLoTu]

Sounds like you did great, titleist! I only had 5 minutes left! The AL isn't really helpful on most the sims. I have only been able to use it for one sim out of all my exams, but it was a lifesaver because I wouldn't have passed without it!

[Titleistg0lfer]

Me too MaLoTu, I had one sim on audit that was literally word for word in the AL. I wouldn't have answered it correctly without it.

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[MaLoTu]

^mine was audit too!

[patelhj1]

I'm still shocked I got a 75! I didn't know any of the SIMS and felt really unprepared for it but somehow pulled it off.

I recommend that if you don't know the J/E at least guess what account its suppose to hit and don't enter any dollar amount. Thats what I did. The J/E I had the math was really hard to compute so I just left that blank almost all the 4/7 J/E

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[Anonymous]

230am eastern. who's up studying FAR with me?

[sallytong]

Hi everyone, I have a cost method/equity question from Becker. o(∩_∩)o
Jan 1, year1 , B paid $20000 for a 15% interest in S. The BV of the net assets was $120000. Any excess is a building with 40 year life. NI by S was $35000. B's share of dividends $750. The market value of investment was $17000 on Dec,31,year 1.
Jan1, yaer 2. B increase its onwnership in S to 50%, paying $60000. The FV and BV of S net assets at Jan1, year2 were $108000. On Jan1, year2 ,B would record additional investment and make adjustments to retroactively convert from cost method to equity method.

building:20000-18000=2000 2000/40=50 (amortization)
Equity method: 20000
+5250 (35000*15%)
-750 (dividend)
-50 (amortization)
=24450
cost method 17000
difference=24450-17000
=7450
-3000 (adjustment to unrealized loss on available-for-sale securites) ???
=4450 (retrospective adjustment to RE)

Journey Entry: Investment in S 7450
R/E 4450
Unrealized loss on available for sale securities 3000

Investment in S 60000
Cash 60000

Can anyone help me explain where is the $3000 come from? How to calculate it ? Thank you very much.

[Anonymous]

Hi guys,

I'm having trouble understanding this question on retirement of debt.

On June 2, 1988, Troy Inc. issued $500,000 of 10%, 15-year bonds at par. Interest is payable semiannually on June 1 and December 1. Bond issue costs were $6,000. On June 2, 1993, Tory retired half of the bonds at 98. What is the net amount that Tory should use in computing the gain or loss on retirement of debt?

Choice “c” is correct. The amount used to compute a gain or loss on bond retirement is the carrying amount of the bond and the pro rata portion of bond issue cost.

Original carrying amount $500,000
Bond issue cost ($6,000 x 10/15) (4,000)
Net carrying amount 6-2-93 496,000
Portion retired x 50%
Amount used to compute gain/loss $248,000

I understand having to deduct the bond issue cost, but I can't seem to understand why we don't also add the amort. for the 8 periods from 6/2/88 – 6/2/93.

[Anonymous]

^ Just figured it out. There's no discount in this case. Bonds due ($500,000) = bonds issued ($500,000).

[Anonymous]

Any Q3 test takers? How are you preparing for any possible DRS questions?

[lolo]

KING, I think I will do my exams in Q3, Becker does great job in DRS!

My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

AUD - ✔ Passed Becker self study!
BEC - ✔ Passed Becker self study!
FAR - ✔ Passed Becker self study!
REG - TBD

[Zyx]

I'm taking it on July 2nd. Just keep working on mcq and write down whatever you're struggling with.

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[mastump317]

Is this the proper forum to post questions concerning either Ninja FAR MCQ problems or Ninja FAR book problems?
Because the forum section isn't designed to allow separate threads, I didn't know if I should post the problem here or in the general section.

[mastump317]

This problem is from the FAR 2016 book pg 25.
Acme Co's has an $50,000 debit balance in accounts payable resulting from a payment to a supplier for goods to be manufactured to Acme's specs.
Goods shipped FOB destination on December 20 were received and recorded by Acme on Jan2; the invoice cost was $45,000.
they are asking what Acme's accounts payable balance should be.

According to the answer, the %50,000 debit balance in accounts payable for good to be manufactured should be shown in accounts receivable unless right to set off exists.
I understand that an accounts payable normally has a credit side, but I can't get my head around why the $50,000 would be in A/R. The company is ordering something that they pay for, so I don't understand why it wouldn't stay in A/P.
I know I'm missing something here, I just don't know what it is.

Marc

[Author]

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