[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

[Just3Letters]

Just did two sets of 100 MCQ and got 68% and 69% 🙁

I keep working MC but I have only cracked 75% a couple times

Somebody fix me!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Claudia408]

is this cash flow question tricky or what? first, it's asking for operating activities… the investment in Videogold and the accumulated depreciation.. tricky tricky… did anyone know how to treat that? It seems outter limits!!! ugh!!!

Metro, Inc. reported net income of $150,000 for 20X0. Changes occurred in several balance sheet accounts during 20X0 as follows:

Investment in Videogold, Inc. stock, carried on the equity basis $5,500 increase
Accumulated depreciation, caused by major repair to projection equipment $2,100 decrease
Premium on bonds payable $1,400 decrease
Deferred income tax liability (long-term) $1,800 increase

Answer: 144,900
In Metro's 20X0 cash flow statement, the reported net cash provided by operating activities should be?

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Spartans92]

^ I am so lost on that Question too Claudia. What software are you using? Why does it seem to be so much harder than becker? HELP!
Seems like I will have to revisit FAR in the future. 🙁

BEC- PASS

[Just3Letters]

I seriously looked at it and couldn't figure it out..

“How many accountants does it take??”

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Just3Letters]

Spartans what do you mean “revisit FAR”? Aren't you taking the exam in 9 days? That should be all you are thinking and dreaming about!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[KJ]

The only thing I can think of is using equity method (I could be wrong).

When we use equity method to record income we debit investment account not cash. Premium on bond is amortized we credit interest expense not cash. Income tax expense is debited not tax in deferred tax. Accumulated depreciation is an investing activity because of major repairs. They will be net income adjustments.

150-55-14+18 = 144,900

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

[Spartans92]

Haha Just3, Guess I am being STUPID here and that is BAD. Im losing confidence because I can't even figure out some of these questions and already assume I will have to retake is what I meant.

BEC- PASS

[KJ]

sorry..income tax expense is debited not cash I meant

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]

Well, I just ate so brain is working a little bit now…lol..don't lose hope Spartans..you will be fine…do 1000 MCQ couple of days before taking exam and you will nail it..

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

[Spartans92]

Kanwal, did you mean direct method? and not equity?
And thanks I will try my best for sure! I definitely don't want to tackle this BEAST the second time.

BEC- PASS

[KJ]

Oops yeah direct method!!

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

[Claudia408]

I'm using Roger and Wiley… I like how they show you different methods of solving problems but sometimes I feel it just opens up a can of worms and more freaking questions!!!! uuuggghhhh!!!

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Claudia408]

I've never studied so hard in my life to get a C!!!!

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Just3Letters]

Think of it this way Claudia…

whenever you lose motivation to do one more multiple choice…

These are the last 4 C's you will EVER HAVE TO GET in your life!!!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[KJ]

On January 1, Year 1, a company issued its employees 10,000 shares of restricted stock. On January 1, Year 2, the company issued to its employees an additional 20,000 shares of restricted stock. Additional information about the company's stock is as follows:

Fair Value of Stock
Date (per share)
——————- ——————-
January 1, Year 1 $20
December 31, Year 1 22
January 1, Year 2 25
December 31, Year 2 30
The shares vest at the end of a 4-year period. There are no forfeitures. What amount should be recorded as compensation expense for the 12-month period ended December 31, Year 2?

A.
$175,000

B.
$205,000

C.
$225,000

D.
$500,000

This is good one. A new one I came across and got it wrong (obviously :-). But try it for good practice.

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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