[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

[jonm857]

@mckan – Good point. You never really do know. However, during past exams I always found myself struggling so much as the test went on, and that was the clear indication that I was doing well. This time I wasn't struggling so I think I'm screwed. It was a very strange exam. Thank God I don't have to wait a whole month to find out the score.

B - 81
A - 87
R - 73
F - July 5th

[ECU CPA to be]

@mckan I think you are right

500,000 x 3/3 = 500,000
300,000 x 2/3 = 200,000
700,000 x 1/3 = 233,333
total = 933,333

933,333 x .05 x 3/12 = 11,666

AUD - 76 (2/11/16)
REG - 79 (4/5/16)
FAR - 67 (6/7/16)
BEC - ? (7/21/16)

[Anonymous]

Hi everyone! I have a question about troubled debt restructuring. I just did this problem in Becker:

“On January 1, Year 1, Gearty Corporation loans Olinto Fabrix, Inc. $200,000 with a 10% simple interest note payable in ten years. Interest on the note is payable annually and the principal is due at the end of the term. On January 1, Year 3, Olinto has yet to pay any interest and approaches Gearty in the hope of renegotiating the terms. Gearty agrees, forgives the interest on the note accrued to date, and reduces the interest to 8 percent.”

In the solution, they used the PV of $1 at 10% for 8 years to discount the principal, and the PV of an annuity at 8% for 8 years to discount the interest payments, and summed those two numbers to get the PV of the renegotiated note ($178,760).

My question is, why do you use the renegotiated rate to discount the interest but not the principal?

[mckan514w]

Who are you being asked to record for Gearty or Olinto? If it is for Gearty I think you would still use the 10% for the principal because that is what it They originally loaned it out at and is on their books for, only the interest payments changed in terms of what Gearty is going to get “at the end of the day”…. if it is Olinto- I am as confused as you because I would think he needs to carry it at the PV of 8%…. I don't know if what I am asking or saying is making any sense because I think I am incoherent at this point… but that is my guess…

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

[Anonymous]

They're asking for what Gearty should record (sorry should have mentioned that). What you said about the principal already having been loaned out and on the books at the old rate makes sense. Thank you!!

I'm incoherent right now too, I have been studying about 8 hours a day for the past 10 days desperately trying to get through all this material before the exam. I moved my test day to the 9th which was the last possible time available. I'm so worried, I feel like my brain is a sieve lately and everything I've been cramming into it has just been immediately draining out. I hope we all pass FAR, that would be the best Christmas present ever!

[Anonymous]

OHHHH yea BS presentatio for software costs is lower of cost or net realizable value… cost is 60000 and NRV is 15000, Which means that amortiation of capitalized software costs is 45000, bc BS PRESENTATION FOR CAPITALIZED SOFTWARE COSTS IS LOWER OF COST OR NET REALIZABLE VALUE (diNG DING MAN i GET IT NOW)

[Anonymous]

F1-f3 IS JUST NASTY

[Anonymous]

yEA nONCONVERTIBLE BONDS WITH DETACHABLE STOCK WARRANTS ARE CREDITED TO APIC AT FAIR VALUE UNDER THE bv METHOD

[emichelle2321]

f2-f3 can go straight to hell as far as I'm concerned 🙂

I cannot believe I have a freakin week until this test. My CFO, controller and assistant controller all passed on their first tries…do you know how much added pressure this is?! I know no one cares about that but it feels good to type it out to people who can understand. I feel like all of my friends and family think im psycho and going over the top at his point. Hopefully I have some friends left after this! ha.

[livealittle]

good luck everybody.

I'm pretty stressed out myself today and my test was Monday!

Becker does have several sims for each chapter. some of the Becker sims are super involved and they even say you are unlikely to see one as involved as that on the exam, but it is good practice.

BEC - 8/8/16
REG - 66, 77
AUD - 81
FAR - 9/8/16

[Anonymous]

Upon exercise of the warrants cash and apic warrants is debited, CS is credited and APIC-CS is credited

[Anonymous]

I HATE CONVERTIBE Bonds I have carpel tunnel from doing JE's all day

[Anonymous]

becker sims are so hard if you practice them like a maniac youll' think the ones on the exam are a joke. Did that with REG and made 86

[Teal]

I'm right there with you guys! This is the most insane work week I've had in forever and my test is Friday!! yikes!

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[mtaylo24]

Yeah, I think I'm burnt out on Ninja MCQ and will be putting it down for a few days. Don't know why I'm struggling so bad w/ it… It's like once I hit review phase and then switched to adaptive, it all went down hill, maybe I should reset? I seem to be doing aight w/ Gleim, but I'm starting to favor the sims and the Wiley focus note flash cards over MCQs at this point. Idk.

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)

[Author]

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