[jeff]

Welcome to the FAR CPA Exam study group for July & August 2018 exams. 🙂

Please introduce yourself & when you’re taking your exam (approximate timeframe).

FAR Study Group Links and Resources:

1. NINJA Monthly – Full FAR Course for $67/mo
2. How to Study for FAR with NINJA Only
3. How to Pass FAR in 20 Days
4. How to Retake FAR After Failing
5. Video: Study Advice for FAR
6. CPA Reviewed Podcast
7. CPA Exam Score Release Dates
8. NINJA MCQ Trending vs Actual FAR Scores
9. I Passed the CPA Exam!
10. I Passed FAR!
11. NINJA FAR SIMS List by Topic
12. Free Downloads: NINJA FAR

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Julia]

Taking FAR in September. Reading Becker & incorporating info into my ninja notes.
Then will start re-writing my notes.

[Julia]

Due to things out of my control, I can't watch my Becker vids. This has been a blessing.
I'm reading the Becker book & making notes in my NINJA Notes from Becker.
It has been very good to read it myself & make notes as I go instead of watching the vids. I feel like it's sticking & I'm going faster! It took 6 hours to do F1.
Also have the Becker note cards so that helps to make it stick.

[Julia]

@deit On the real test, each answer is a drop down & is graded individually.
Like on research question. ACS 98.b each is 1 pt: ACS & 95 & b.
Hope this helps.

[Julia]

@Candace: I did MCQ , AICPA practice test & rewrite my notes. I tried not to get too tired the week before & did mostly re-writing to keep info fresh.

[Julia]

@Pepper I got a student planner & note the times I study each day, what I studied & scores on MCQ & numb of pages re-writing.
I'm 40 so I'm not in student mode. But, this helps me to b accountable. Blank pages motivate me to pick up something & study.

[Anonymous]

Can someone please explain contra assets? I know it has a normal credit balance. But you debit to increase?

[Anonymous]

Just took FAR. MCQ's were manageable. SIMS weren't anything like Becker and gave me a hard time. I'm 50/50 on whether I got the 75. Good luck guys!

[Julia]

@al1Lima: Think of contra-assets like a liability. So everything that makes a contra-asset inc/dec is same as liab.
Debit – Dec
Credit – Inc
It acts “contra” to an asset. Lol.

[Anonymous]

Julia, I just have a hard time with that too. If it is like a liability, then why do I debit to increase it?

[Anonymous]

What I meant to say, is I thought you debit to increase. For example, when you dr valuation allowance (contra asset) and cr unrealized gain.

[Julia]

it's my understanding a valuation acct can b either a contra asset or contra liab. Depending on its function.
An example of it as an asset is Allowance for doubtful or Accumulated Dep accts:
Dr Dep Exp
Cr Acc Dep

An example of a lib contra is Disc on Bonds Payable.

I cud b wrong. Any other input? I'm still on F2 in Becker. I'm going off my tutor & TA days (um 15 yrs ago). Lol.

[chrissy]

First time taking FAR

Exam date September 10, 2018

Journal Entries keeps me awake.

Never give up, you are closer than you think.

[JB]

Can someone help me with this? I have a question about how you calculate the gain.
Jabber Corporation exchanged inventory with a fair market value of $80,000 and book value of $60,000 for identical amount of similar inventory from Kabber Corporation. The exchange lacks commercial substance. The inventory Jabber received had an indeterminate value, however, Kabber also paid cash of $15,000. As a result of this transaction, Jabber would record its new inventory at?
A. $75,000
B. $60,000
C. $80,000
D. $48,750 – Correct Answer.

Total gain = 80-60 = 20K. Since cash is received, you're going to recognize a gain in proportion to the cash received.
Formula to calculate gain proportion = (the total boot received / the total consideration received)
The total consideration received should be 15K(cash)+80K(FV) = $95K. But according to Becker, the total consideration received is 80K. Could someone explain this to me?

[Julia]

The consideration is $80,000 because you value the new asset at the FV of what you are giving up. You are giving up $80,000 FV inventory. There is an example in the Becker section “Exchanges Lacking Commercial Substance.”
I looked at Roger and saw your formula. But, the FMV of what was received was not provided.
Also, it is less than 25% of the FV of what you are giving up.

[Jobin]

Just took FAR. Multiple choice isn't too bad but the SIMS are difficult. I hope I got a 75. Good Luck!

[Author]

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