[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for FAR.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

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

[GiniC]

I see – you're confident you can still pass AUD with just a few weeks' review?

Something must be wrong with my connection – I can't find an available seat ANYWHERE. I looked at nearly all the centers in my area, then I tried LA, Houston, and Denver – nothing I look at shows any open seats, all the way out to March. That can't possibly be real!

[accountingisfun]

Yeah I've actually passed audit twice and both times I studied for 1-2 weeks — it helps that I work in audit — so I'm pretty sure I can prepare for that in a minimum of 2 weeks.

I'll probably give myself more than that though and start studying a few days after I take FAR rather than waiting for my FAR score release…

—

That's odd GiniC — Try Hamilton, NJ, I see availability in November and January – just wondering if you can see the availability as well or if it is something wrong with your connection.

[accountingisfun]

Can someone confirm if the below is correct (related to the sale of a trading security vs. sale of available-for-sale securitiy)?

Trading Security:
12/15 Purchased for $100
12/31 Revalued to $120
01/15 Sold for $150

Sale = $150 – (100 + 20) = $30 realized G/L

Available-for-Sale Security:
12/15 Purchased for $100
12/31 Revalued to $120
01/15 Sold for $150

Sale = $150 – $100 = $50 realized G/L (And then you'd also move unrealized G/L of $20 out of OCI to I/S)

[GiniC]

@accountingisfun:

I tried Hamilton – can't see any seats, so it must be something on my end. I'll take a breath and try again tomorrow!

As for the securities question: on the trading securities, the initial revaluation gain would be recognized on the income statement at the revaluation date (you didn't mention that); at the time of sale the remaining $30 gain would be recognized. I agree completely with the AFS listing.

Gini

[Tuscan.Alin]

My financial acctg & reporting test is coming up on Nov 15th. This is my section#3 exam, I already pass REG & BEC. Any advice is greatly appreciated.
Also, do they test a lot on consolidation?

Thank!

[EfrainV24]

@GiniC actually yes – that helps out a bunch! Taking a step back you're correct – the graduate would essentially pass away with not enough funds to cover his will and could also change it. Definitely helps understanding why they don't recognize it as revenue. Still a little confused as to why a pledge isn't under the same guidelines as a person can change their pledge at any given time but that's for another day 🙂 Thanks!

[mckan514w]

I do not understand why the LTD here would be increased by the carry value-of the old bond- or even why the old bond is still being carried if it were redeemed??? wouldn't you just recognize a loss at the redemption?

A 15-year bond was issued in Year 1 at a discount. During Year 11, a 10-year bond was issued at face amount with the proceeds used to retire the 15-year bond at its face amount. The net effect of the Year 11 bond transactions was to increase long-term liabilities by the excess of the 10-year bond’s face amount over the 15-year bond’s:

A.face amount.

B.carrying amount.

C.face amount less the deferred loss on bond retirement.

D.carrying amount less the deferred loss on bond retirement.

Correct Anser B

new debt would be carried at Face, the old debt would be carried at below Below Face (less the remaining unamortized discount), and the total long-term liabilities would be increased by the discount left, the amount the new 10-year debt carrying value is higher than the carrying value of the 15-year debt.

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[MMAFEM]

hi,
i am having tough time getting this question, I was getting ans A since i multiplied 18 with 80% of 50,000, why this does not work this way???
by the way the ans is C.

On April 1, year 1, Parson Corp. purchased 80% of the outstanding stock of Sloan Corp. for $700,000 cash. Parson determined that the fair value of the net identifiable assets was $800,000 on the date of acquisition. The fair value of Sloan’s stock at date of acquisition was $18 per share. Sloan had a total of 50,000 shares of stock issued and outstanding prior to the acquisition. What is the amount of goodwill that should be recorded by Parson at date of acquisition?
$0
$ 60,000
$ 80,000
$120,000

please help.

[AScott89]

I had this all typed out then realized I did it wrong and came up with the same answer you did. Now I'm stumped as well.

BEC-65
AUD-72(8 '14); 68(11 '14)
FAR-
REG-

[mckan514w]

Okay I may not be doing this right but I came up with 80,000 by looking at it from the balance sheet perspective

Company's FV of assets = 800
COmpany's Stock = 900

Assets= Liabilities+ Shareholder Equity

So there must be 100 of Goodwill that exists in the company in order for the accounting equation to balance.

Parsons bought 80% of it which would include $80 in Goodwill (100*80%)

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[AScott89]

*slaps forehead* That's where my brain was trying to go but couldn't quite get there. Thanks @mckan!

BEC-65
AUD-72(8 '14); 68(11 '14)
FAR-
REG-

[Anonymous]

I know scores were released on the 4th but Maryland isn't a NASBA state so I am still waiting. Are there any others on this thread still waiting for their scores?

[Anonymous]

I'm still waiting for my score to be released. I am going insane!!!

[accountingisfun]

Exam Wednesday… Probably just going to take it then (although something did just open up on the 14th :-P)… I didn't do too well on the first Becker Final Exam but got my practice multiple choice scores up a bit from a day or two ago…

[jcman240]

Got my exam in 3 weeks. Don't think I will pass… at this point i'm only trending at 60% on MCQ and I cant seem to understand what information they want displayed in the Sims. I hope the actual exam details what they want on these sims more than these practice sims do. I'm pretty good at narrowing the MCQ answers down to 2, so my thinking is I will have to get lucky and guess right a lot to pass.. I wonder how many CPAs out there today wouldn't be if they had to pass this test… this exam was a layup 15 years ago compared to this crap…..///

[Author]

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