[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

[lolo]

@Just3Letters, the transaction for the initial investment is:
Dr: investment 400,000
Cr: cash 400,000

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

[MaLoTu]

I don't know if the dr is to income, but it definitely hit the IS I think the debit must be a premium account (like you would have with a bond). But I am fairly certain the cr is to the investment account – equity earnings increase and amortization on FV in excess of cost decreases.

For the sake of confusing everyone … we will just remember to subtract out the share of the depreciable asset for income!

[lolo]

The whole thing:

investment 400,000
cash 400,000

investment 60,000
income 60,000

income 8,000
investment 8,000

Income – 60,000 – 8,000 = 52,000$

Hope this helps!

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

[lolo]

@MaLoTu, I am absolutely 100% sure of what I say!

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

[MaLoTu]

Is that equity earnings- income from investee?

That helps… I call that account equity earnings, that is where I got mixed up.

[Pony Boy]

Anyone have an estimate of how long it should take for a full review of FAR before the exam? I am finishing the first pass of the material this week and will start my full review next week. 3 weeks, 4 weeks??

REG (02/2016)- PASS
BEC (04/2016)- PASS
FAR (06/2016)- PASS
AUD (08/2016)-

"Stay Gold, PonyBoy, Stay Gold"

[MaLoTu]

@pony- you should be fine for 5/20 testing. It is really dependent on how comfortable you are with the material. I studied my second attempt at FAR in 12 days and managed a 70… This time I am playing it by ear and going much slower than I anticipated.

[lolo]

@MaLoTu, Exactly!

@Pony Boy, I think FAR should take at least 6 weeks!

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

[Pony Boy]

The review itself should take around 6 weeks or 6 weeks from start to finish? I have heard of reviewing anywhere from 2 weeks to 5 weeks.

REG (02/2016)- PASS
BEC (04/2016)- PASS
FAR (06/2016)- PASS
AUD (08/2016)-

"Stay Gold, PonyBoy, Stay Gold"

[MaLoTu]

@Pony – how many gaps do you have? I would never study for longer than 6-7 weeks in total because my short term memory just wont hold the earlier learned stuff that long! What does your gut tell you?

[Pony Boy]

Pushed it back to the first week of June, so I should have right at 4/ 4.5 weeks of review. I am finishing F10 of Becker (the last section) this week. I am thinking 4-5 weeks should be enough, but I will have a tight review schedule for that period.

REG (02/2016)- PASS
BEC (04/2016)- PASS
FAR (06/2016)- PASS
AUD (08/2016)-

"Stay Gold, PonyBoy, Stay Gold"

[Just3Letters]

Can somebody with a better understanding of partnerships explain this to me? I get the difference methods of admitting partners, but liquidation kills me. Also, any easy ways you guy go about doing partnership liquidation? Thanks!

The following condensed balance sheet is presented for the partnership of Alfa and Beda, who share profits and losses in the ratio of 60:40, respectively:

Cash $ 45,000
Other assets 625,000
Beda (loan) 30,000
——–
$700,000
========
Accounts payable $120,000
Alfa (capital) 348,000
Beda (capital) 232,000
——–
$700,000
========
Instead of admitting a new partner, Alfa and Beda decide to liquidate the partnership. If the other assets are sold for $500,000, what amount of the available cash should be distributed to Alfa?

A.
$255,000

B.
$273,000

C.
$327,000

D.
$348,000

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

[marqzho]

273?

Other Asset sold for a loss. So profit & loss ratio kicks in.

500-625 = -125 *60% = -75

A Capital = 348 – 75 = 273

REG 90
FAR 95
AUD 98
BEC 84

[Just3Letters]

Marqzho,

273 is correct. I actually get it now too! I just wasn't thinking about the partnership assets as actually being true assets sold for a loss.

Anyways, much better now 🙂

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

[Paras316]

if the operating leverage is 8 and increase in sales is 19%, what will be the increase in NOI? Please advise.

[Author]

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