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mckan514w.
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September 14, 2016 at 8:42 pm #836137
jeff
KeymasterWelcome 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).
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November 30, 2016 at 9:07 am #1330562
mtaylo24
Participant@McKan…You kilt it! Haha!
Don't worry, I'm stressing too. Not sure if I'm going to make it next week, I hit more than review phase, but I'm still missing questions left and right.
AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)November 30, 2016 at 9:14 am #1330569Anonymous
InactiveI am so nervous man this my possibly last exam been on this journey . Another thing that concerns me is capitalizing interest on construction projects. I fear a SIM on this. I want this nightmare to be over the past year has been hell on earth.
November 30, 2016 at 10:34 am #1330640emichelle2321
ParticipantI am in freak out mode. I definitely could use another month but I guess what's done is done. Trying to remain positive and cram as much as I can in addition to dealing with month-end close at work this week and next…All we can do is try at this point and hope for a little luck!!
November 30, 2016 at 11:18 am #1330652mtaylo24
Participant@emichelle2321, HAHA we are all freaking out today for some reason! Take a quick break and do something that makes you happy (go to starbucks/grab a red bull/get something good to eat/listen to your favorite song) and then get back to it! It helps!
AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)November 30, 2016 at 11:22 am #1330653mtaylo24
ParticipantWho likes bonds? (Not me)
On January 1, Year 1, Company C purchased 10 of the $10,000 face value, 10%, 2-year bonds of Company D. The bonds mature on December 31, Year 2, and pay interest annually on December 31. Company C purchased the bonds to yield 12% and classified the bonds as held-to-maturity. The company's policy is to amortize the bonds' premium or discount according to the effective interest method. Information on present value factors is a as follows:
Present value of $1 at 10% for two periods 0.8264
Present value of $1 at 12% for two periods 0.7972
Present value of an annuity of $1 at 10% for two periods 1.7355
Present value of an annuity of $1 at 12% for two periods 1.6901Enter the appropriate amounts in the shaded cells below. Round all amounts to the nearest dollar. If no entry is necessary, enter a zero (0).
1. The amount Company C paid for the bonds.
2. The amount of discount on the bonds on January 1, Year 1.
3. The amount of cash interest received by Company C during Year 1.
4. The amount of interest revenue recognized in Year 1 income statement.
5. The amount of the bonds' discount amortized in Year 1.
6. The carrying amount of the bonds presented in the December 31, Year 1, financial statements.AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)November 30, 2016 at 11:32 am #1330673mckan514w
Participant@charlie54- this could be my last one too and that in and of itself has me even more freaked out for this exam. I also live in fear of a SIM on construction projects… as well as a government statement
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- 9/2November 30, 2016 at 11:42 am #1330677mckan514w
ParticipantLOL okay mtaylo I will give this one a go…..
A. Bought the bonds for 9,662.1
B. Discount on Bonds is 337.9
C. Cash Received as Interest Y1 1,000
D. Revenue Recognized on Bonds Y1 1,159,45
E. Discount Amortization 159.45
F Carry Amount End Y1 9,821.55???????
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- 9/2November 30, 2016 at 11:55 am #1330689mtaylo24
Participant^^^Yeah, I need work there too!
Investments in Bonds (6 Gradable Items)
1.$96,621. An investment in a bond should be recorded at its fair value (purchase price), i.e., the present value of its cash flows discounted at the market (yield) rate of interest. The present value of the bonds' face amount at maturity is $79,720 (10 bonds × $10,000 face amount × 0.7972 PV factor for a single amount at the market rate), and the present value of the periodic cash interest payments is $16,901 (10 bonds × $10,000 face amount × 10% stated rate × 1.6901 PV factor for an annuity at the market rate). Thus, the total amount paid for the bonds (i.e., their present value at the market rate of interest) is $96,621 ($79,720 PV of face amount + $16,901 PV of interest payments).
2.$3,379. If the bonds' stated rate is lower than the market (yield) rate of interest at the time of the purchase, the purchase price is lower than the face amount and the bonds are purchased at a discount. The amount of discount is equal to the difference between the face amount of the bonds and the purchase price ($100,000 − $96,621 = $3,379).
3.$10,000. The annual cash interest is $10,000 (10 bonds × $10,000 face amount × 10% stated rate).
4.$11,595. The amount of interest revenue recognized in Year 1 is equal to the carrying amount (fair value) of the bonds on January 1, Year 1, times the effective (yield) rate ($96,621 × 12% = $11,595).
5.$1,595. The amount of discount amortized each period is equal to the difference between the amount of interest revenue recognized and cash interest received ($11,595 − $10,000 = $1,595).
6.$98,216. The carrying amount of the bonds on a specific date is equal to the face amount of the bonds minus the amount of remaining unamortized discount. On December 31, Year 1, the face amount of the bonds is $100,000, and the amount of remaining unamortized discount is $1,784 ($3,379 − $1,595). Thus, the carrying amount of the bonds on December 31, Year 1, is $98,216 ($100,000 − $1,784).
AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)November 30, 2016 at 12:00 pm #1330694mckan514w
ParticipantYAY!!! I actually think I would stand up and start singing the hallelujah chorus in the middle of prometrics if I got a Bond SIM- I mean it being Christmas and all- ha ha ha ha….
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- 9/2November 30, 2016 at 12:06 pm #1330701Anonymous
InactiveOk I know the formulas and how to amortize capitalized software but for some reason I have trouble with them in the MCQ
2 years ago I got a 64 on FAR but since then I have gone through grad school and worked a 10 month internship. So there won't be as many gaps in my knowledge as there once was.
On January 1, Year 1, a company capitalized $100,000 of costs for software that is to be sold. The company amortizes the software costs on a straight-line basis over five years. The carrying value of the software costs on January 1, Year 3, was $60,000. As of December 31, Year 3, the estimated future gross revenue to be generated from the sale of the software is $23,000, and the estimated future cost of disposing of the software is $8,000. What amount should the company expense related to the software costs for the year ended December 31, Year 3?
a.
$37,000
b.
$18,400
c.
$45,000
d.
$20,000November 30, 2016 at 12:11 pm #1330703mtaylo24
Participant@McKan514w, That would be quite the scene! I would be dead (x_x) on site LOL!
Finally a perfect score (about time)!
1 1305 5A1 Statement of Financial Position 100% 0:05:57
2 1619 2N Income Taxes 0% 0:03:45
3 878 3L Impairment 100% 0:00:36
4 682 2N Income Taxes 100% 0:03:55
5 1388 5B4 Expenses, Including Depreciation 100% 0:00:14
6 903 3M Interim Financial Reporting 100% 0:03:07
7 1250 4D6 Nonexchange Revenue Transactions 100% 0:00:33
8 851 3J Derivatives and Hedge Accounting 0% 0:00:32
9 1017 3T Segment Reporting 0% 0:00:17
10 1509 2L Costs and Expenses 100% 0:00:26
11 3 1A1 U.S. Securities and Exchange Commission (SEC) 100% 0:00:20
12 1024 3U Software Costs 100% 0:00:28
13 1319 5A2 Statement of Activities 0% 0:00:41
14 1189 4C Financial Reporting Entity 100% 0:00:07
15 754 3D Consolidation (Including Off-Balance-Sheet Transactions, Variable-Interest Entities, and Noncontrolling Interests) 100% 0:00:45
16 48 1B1 Financial Reporting by Business Entities 100% 0:00:17
17 254 2B Receivables 100% 0:00:48
18 4 1A1 U.S. Securities and Exchange Commission (SEC) 0% 0:00:31
19 647 2M4 Retirement Benefits 100% 0:00:40
20 205 1F Special Purpose Frameworks 100% 0:00:22Session Score: 75%
Total Time: 0:24:21
Number of Questions: 20
Average Time: 0:01:13AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)November 30, 2016 at 12:16 pm #1330706mckan514w
ParticipantThe Carry amount of software is limited to the net realizable value which in this case is 23-8= 15.. thus the company must expense 45 in capitalized software cost to bring the carry value down to NRV.
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- 9/2November 30, 2016 at 2:14 pm #1330754ECU CPA to be
MemberNeed help on this
6. A company with a June 30 fiscal year end entered into a $3,000,000 construction project on April 1 to be completed on September 30. The cumulative construction-in-progress balances at April 30, May 31, and June 30 were $500,000, $800,000, and $1,500,000, respectively. The interest rate on company debt used to finance the construction project was 5% from April 1 through June 30 and 6% from July 1 through September 30. Assuming that the asset is placed into service on October 1, what amount of interest should be capitalized to the project on June 30?
A. $11,666
B. $18,750
C. $75,000
D. $90,000AUD - 76 (2/11/16)
REG - 79 (4/5/16)
FAR - 67 (6/7/16)
BEC - ? (7/21/16)November 30, 2016 at 2:55 pm #1330784jonm857
ParticipantJust finished the exam. I know I didnt pass because the testlets were not getting harder. The sims were okay, I was able to finish all of them. Has anybody ever passed when the testlets never got harder?
Know R&D like the back of your hand.
B - 81
A - 87
R - 73
F - July 5thNovember 30, 2016 at 3:49 pm #1330827mckan514w
ParticipantOMG seriously how can I be this stinking bad at Govt.???? I can not get one question right and am averaging 42%– WTF….
@jonm857 maybe you knew the info better than you thought you did? Only exam I honestly noticed the questions getting harder was my AUD one- good GOD I wanted to blow my brains out by the third one… and if pressed really hard I would say my first BEC second testlet was harder… but I failed that one. REG never seemed to get harder and if anything I felt like my second BEC actually got easier … so honestly you never know… I have my fingers crossed for you.@ECU CPA to be — ugh I have cap-I slated to go over well and good for tomorrow along with % of completion…. I get so confused with that… If it helps I think you are suppose to take the weighted average of the outstanding obligation and then multiply it by the interest rate- of 5% since the question only says through June???? sorry I can't be of more help…
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 -
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