SO I know every test is different but does anyone have any insight on what has been heavily tested recently? I take the exam Monday and I need to narrow my focus….Thanks!
For share based liabilities, the JE when market increases is DR. Compensation Expense CR Liability. What would the entry be if the market decreases? I know expense would be credited, but do you liability?
For share based liabilities, the JE when market increases is DR. Compensation Expense CR Liability. What would the entry be if the market decreases? I know expense would be credited, but do you liability?
In a business combination, the appraised values of the identifiable assets acquired exceeded the acquisition price. The combination is accounted for as an acquisition (initiated in a fiscal year beginning after December 15, 2008). How should the excess appraised value be reported?
Good question. I think you need to ignore the word “extraordinary” and simply focus on the Gain portion of the answer. When you pay less than the F/V of assets, it's a gain. There's no such thing as negative goodwill so both of the goodwill answers are out. Unless the question, specifically, states that stock was used for the purchase, you can ignore the APIC answer. That leaves the extraordinary gain. Like I said, focus on the word “gain” and not the word extraordinary in this case.
From FASB: Goodwill (potentially recognized as extraordinary gain from business combination): If the fair value of the acquired net assets exceeds the purchase price, the excess is allocated as a pro rata reduction of the amounts that would otherwise have been assigned to assets [excludes financial assets other than equity method investments, assets to be disposed of by sale, deferred tax assets, prepaid assets related to pensions and other retirement benefits, and any other current assets]. If any excess remains after reducing assets to zero, it is recognized as an extraordinary gain.]
Hey guys! I was supposed to sit for this exam during Q3, but things got a little hectic at work and slowed down my studying a bit. However, I'm back at it! Studying with Becker. I have the NINJA notes, Wiley Test Bank, and Becker Final Review. Hoping to knock this one out of the park on the first try.
Currently, I'm getting through F6. Pushing really hard to get through all of the material in the next week and a half. Exam is scheduled on the very last day that my NTS is good for so I'm taking it on October 8th.
Any insight on the best way to get a comprehensive review? What's worked for you on other exams?
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