[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

[Zyx]

There's a post about this question;
https://www.another71.com/cpa-exam-forum/topic/leasehold-improvement-depreciable-amount

At the end of the lease, the building's estimated market value will be $420,000, it is just an estimate, not salvage value which is irrelevant.

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

[ImCPA]

@Just3 and All: I've not given any time to Ratio Analysis so far, as I thought this isn't tested much. Also, Becker hasn't given much stress to this topic. Should I be practicing this?

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

[Just3Letters]

Kanwal,

that's kinda what I figured. Thanks! And yes, the answer is A!

ImCPA, I would know the normal ones like Inventory turnover, average days in inventory, quick ratio, current ratio, etc.

Those don't really require much “practicing” as long as you have them in your head.

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

[Just3Letters]

Also,

Ninja MCQ are incredible for finding your deficient areas with all of the analysis you get to see. Super helpful

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

[Spartans92]

hey just a general question if under the equity method a company pays out dividend does this have any impact on the investment in the I/S? I know the dividend is not treated as income instead reduces the investment account.

Company X owns 15 percent of company S and exerts significant control over the operations of the company. The book value of the investment on December 31, 2001, is $48,000. In 2002, company S earned $100,000 and paid dividends of $20,000. The investment on the income statement of company X is:

A) $3,000.

B) $12,000.

C) $15,000.

D) $0

Alternatively, if the Q asked about investment income it would be 15k. I am just confused whether I wanna deduct the 3k (dividend) for the investment account.

BEC- PASS

[ImCPA]

@Spartans:

The investment is shown on the B/S and not on I/S. If the question is asking for investment INCOME on I/S then I would just have 15k as income on I/S (for equity method) and would not subtract dividend of 3k.

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

[MaLoTu]

Spartans, the dividend is like a withdrawl, but it reduces the investment in investee account, which is apparently a BS account. Equity earnings are reported in the IS, which is the percent of the company's earning that belongs to the investor.

The JE to record Invetee earnings:

Dr Investment in Investee (BS acct)
Cr Equity Earnings (IS acct)

15k goes to IS
The ending balance in the investment in investee account would be 60k

[Spartans92]

Thanks guys. That make much more sense. I think I'm gonna take a break from FAR. :/

BEC- PASS

[Claudia408]

I made it out of hell, just barely. You know I'm actually really pissed with FAR. I have taken 3 sections a total of 7x and I've never been this pissed after leaving an exam.

I thought the MCQs were fair, but I still had sooooooo many questions where I narrowed it down to two and had to make an educated choice. However, some of the MAJOR topics I spent a lot of time on weren't really tested. I felt like I got a few questions that asked the same thing in each testlet in a different way, and it was one of those questions you know but could easily forget bc there's so much info.

Then came the SIMs… 4 of the 7 had a resource tab that you need to look up some info then populate some sort of spreadsheet. Ok, well just clicking back and forth from tab to tab and sometimes a third tab form one SIM is eating my time. One SIM was so damn vague. I mean, the SIMs on these review courses certainly have the same concepts, but the format is completely different and the instructions are not as clear. So the say these changes won't take into affect until 2017 but I feel like they are actually kinda here.

Anyways, I truly feel like I'll be lucky to break 60. I'll be back at this in Q3.

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

[Claudia408]

I would like to add the MCQs didnt have as much randomness as I thought, actually the least random of all the sections. But yea, those SIMs. I wanted to just walk out of the testing center 15 minutes into the SIMs. lol

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

[Spartans92]

Great to hear back from you Claudia. I hope we can hear some good news though I feel I will be back here later too. I remember i only had one Sim with the resources and I was lucky enough. Ended up guessing on it since it may be a pretest. I second the mcq part a lot of mine were similar topics but different way. Heck, I even recall one question om 2nd test so similar to the first and I was down to 2 Choices. I knew i made a mistake on that first question. Wish I could have went back to the testlet and make the changes. I'm not a fan of the new drs.

BEC- PASS

[Claudia408]

Spartans – are you one of those that say they fail and get 90? i'm actually pretty spot on and honest with myself and predicted all my scores with in 2-3 points.

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

[Spartans92]

Claudia no way I am those type haha. I thought I would pass audit but I didnt. Far is my weakest. I was so pissed at the Sims where one was just similar to Becker on the Concept and I couldn't tackle it.
I know I failed for sure just a matter by how many pts. I don't expect anything lower than 60 hopefully. I think it's time to move on to the next section and get a pass to build my confidence.

BEC- PASS

[Claudia408]

i'm already planning what date i should retake FAR… hopefully i can knock out Reg in June and then PASS FAR some time in August. WAAAAHHH so sad this CPA life is!!

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

[Spartans92]

Haha me too. Unfortunately, won't be able to tackle this section until November I wanna get the other ones out of the way. I feel like I can pass aud on my next retake after all these far knowledge. 🙂 I can't wait to be done. U r so close Claudia. The Sims seem so impossible just don't know how to study for them anymore.

BEC- PASS

[Author]

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