[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]

Claudia,

It's not a $0.90 as in 90 cents, it's a .9 as in 90% chance of vesting. The last sentence states that they anticipate 10% of employees are not going to vest benefits. You don't accrue for stock option benefits that are not going to vest. Therefore, 100%-10%=90% of options ARE anticipated to vest.

2000 * .6 * .9 = 1080

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

[Just3Letters]

Claudia,

how did you do on the practice exams? Feeling confident? They say you never feel ready haha

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

[Claudia408]

Thanks Spartans… I was getting all flustered way too fast w that question!

I haven't taken any practice exams lol. But I'm averaging 70 on all MCQs since day 1, some seen again some not bc I'm using Wiley and Roger. Soooo…. who knows what that means…

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

[Spartans92]

the MCQ are easy to narrow down so it shouldn't be too bad once u get to 2 choices. Sometimes the answers just seem obvious and that is when not to second guess lol. I got a few Q's like that and I kept guessing this gotta be wrong its too easy.

BEC- PASS

[Just3Letters]

Haha Spartans that might be the most important piece of advice I've gotten.

I have it stuck in my mind that the questions on the real exam are tougher than Becker/Roger/Wiley somehow

I just need to see some sun and then I can relax

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

[Spartans92]

Just3, after may 13 you can give yourself a break since you won't test Reg until july. 2 more weeks, hang in there!

BEC- PASS

[Spartans92]

Can anyone explain..
On January 2 of the current year, Otto Co. purchased 40% of Penn Co.'s outstanding common stock. The carrying amount of Penn's depreciable assets was $1,000,000 on January 2. Penn's depreciable assets had an original useful life of 10 years, and a remaining useful life of five years. Otto recognized $8,000 amortization for the current year ending December 31 related to its investment in Penn due to the excess of fair value over book value on these assets. What was the fair value of Penn's depreciable assets on January 2 of the current year?

BEC- PASS

[ImCPA]

@marqzho:

The Final Review of Becker has questions from the Homework and Practice questions only. I gave test this Monday after a week of break from studies and most of the question on Final Review looked new to me and as if I have never seen these questions before. Ofcourse the material is so vast and so many multiple choice questions to work on, I think most of the questions I worked through the concepts I had intacted in my head. I did 4-7 questions wrong in each testlet (average 76% on MCQs), but my good performance on Simulations pulled my score to 82-85% overall. So wanted to know how close Becker simulations are to real exam and if I should not be too optimistic from my Becker test results and keep practicing not just MCQs but Simulations as well..

FAR - 85 (5/10/2016)
AUD - 89 (7/12/2016)
BEC - 9/07/2016
REG - TBD

[ImCPA]

Hey Just3: I'm giving FAR on May 10 , just 3 days before you. I shall definitely share my experience here with you, if in case that helps.. Good luck studying 🙂

FAR - 85 (5/10/2016)
AUD - 89 (7/12/2016)
BEC - 9/07/2016
REG - TBD

[Just3Letters]

Hey Spartans,

I was at work last night when you posted that. When Fair Value of identifiable assets are higher than book value upon acquisition, Goodwill is decreased by that excess.

Therefore, you have to increase the carrying value of the depreciable assets (1,000,000) by the amount in excess of book value. The question states that you have 8,000 amortization in current year and five remaining years, if we assume SL amortization, 8000*5=40,000 excess over fair value.

1,000,000 + 40,000 = 1,040,000 Fair Value of Assets. Is that correct?

Is that correct?

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

[Just3Letters]

Sarika,

you are going to kill it! I definitely look forward to hearing about your success story in 10 days! Keep studying!

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

[Just3Letters]

Also, we were discussing foreign exchange gain/loss the other day.

From my advanced accounting text:

If you have A/P and your reporting currency STRENGTHENS =

Dr. A/P XXX
Cr. Foreign Exchange Gain XXX

Visa/Versa

If you have A/R and your reporting currency WEAKENS =

Dr. A/R XXX
Cr. Foreign Exchange Gain XXX

Visa/Versa

I'm just going to try to memorize this

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

[MaLoTu]

Spartans – That is a really hard question. I know it is equity method. I have no idea how you derive FV of the investment from the 5 year old carrying amount of the purchasee!

This popped up like 30 minutes after I wrote it!

[MaLoTu]

Did my response show up? I see it on the main board page, but when I click here I see nothing

[MaLoTu]

I made 2 and they are not showing up (not sure this one will either) … But after seeing Just3's response, I know mine was off!

40000 would = 40% … so the full FV of the assets would be $1100000, right? 40000/.4

then that would make 40% purchased $440k … then you have to depreciate it by 5 years? I got $352 …. that is a really hard problem.

[Author]

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