June 28, 2019 at 6:34 pm #2514741YawParticipant
Is there anyone studying for FAR in the Denver, Colorado area? I would love to connect and possibly form a study group.
I'm using Gleim.July 1, 2019 at 12:30 am #2519940Mi ChanParticipant
@queenie I suggest you look up Farhat's videos on YouTube, he explains every topic very well!July 1, 2019 at 12:35 am #2519946Mi ChanParticipant
Fsin1328 I am interested in how you are studying using both Gleim and Ninja. Which book do you use primarily?July 1, 2019 at 3:08 pm #2522262fsin1328Participant
I use Gleim primarily and NINJA as a supplement. I like the chapter layout that Gleim provides, this is my second time studying for FAR so I purchased NINJA as a secondary study guide for more MC practice, honestly many questions I see on Gleim are identical on NINJA. NINJA is a great supplement for the “longer “chapters that I need more practice and understanding on.
Hope this helps!
Best of luckJuly 1, 2019 at 3:24 pm #2522301AkashiParticipant
I agree. I like the Gleim layout as well. I am also studying for FAR, but I have been able to pass BEC, AUD, and REG using Gleim which I will have to do again, as I lost credit due to not being able to pass FAR on time. Anyways, I think that the Gleim layout of practices, study sessions, exams etc is the best of all the other review courses I have tried. I currently have access to Wiley, Yaeger, and Gleim.July 1, 2019 at 7:37 pm #2523153cpaexpertParticipant
Hi there, I am starting to study for FAR. I have done a little bit of studying prior to this but am looking to commit more now. I am using Wiley and would be down to study with anyone.July 1, 2019 at 7:48 pm #2523192BF98Participant
@Cpaexpert Sure I'd be game I'm using Gleim though.July 3, 2019 at 9:17 am #2527359
Hi Ninja's, I am joining this group for support for far. I am looking to schedule far in 6 to 8 weeks. Hope everyone is studying hard and good luck.July 3, 2019 at 5:42 pm #2528718ParkerParticipant
Need some encouragement. I have passed other three exams but my motivation is dwindling and I am drowning in information. Any tips to on how to most efficiently use becker?July 3, 2019 at 5:44 pm #2528724
I’m in the same boat as you. Just have FAR left & I failed it by two points about a month ago. I retake it in a couple of days. Your scores have been much bette than mine, but I would suggest switching it up & maybe using Ninja. A chance of scenery might help you outJuly 7, 2019 at 5:32 pm #2539485July 8, 2019 at 9:32 pm #2542791ssibiParticipant
Can someone help me with the question below:
Brass Co. reported income before income tax expense of $60,000 for year 2. Brass had no permanent or temporary timing differences for tax purposes. Brass has an effective tax rate of 30% and a $40,000 net operating loss carryforward from year 1. What is the maximum income tax benefit that Brass can realize from the loss carryforward for year 2?
Due to the Tax Cuts and Jobs Act of 2017, NOL can be carried forward indefinitely (up to 80% of taxable income). Wiley says the answer is A. Is this still the case or would the correct answer be D?July 8, 2019 at 10:17 pm #2542875stanParticipant
@SSibi: The answer is A (40,000*0.3= 12000).
Here is why:
in Y2 you had a income of $60,000. The maximum loss you can use to offset that income is $48,000 (60,000* 0.8). Because your Y1 loss is only $40,000 (less than $48,000 allowed by law) you can deduct all the $40,000 loss. Therefore the maximum income tax benefit in year 2 is 40,000 *0.3= 12,000
In the side line, Suppose the Y1 loss is 1,000,000 and Y2 income stays the same. You can only deduct 48,000 (80% of Y2 income) against your $1,000,000 loss. That will saving you $14,400 ( 48,000*0.3) in Y2. You will carry a loss of $942,000 (1,000,000-48,000) into Year 3.
Suppose You had a 700,000 as income in Y3. You can only deduct $560,000 (80% of 700k)against your remaining loss that you have carried forward from year 2. Your taxable income in Y3 will be 140,000 ( 700K-560K) and you will carry forward into Y4 a loss of $392,000 ( 952k-560K). And the same bullshit keeps on repeating itself until you recuperate all your loss and then uncle Sam will grab you by the neck again for money. Lol! Just making it stick into the brain that way you can crunch this CPA and make the money!!July 9, 2019 at 6:12 pm #2545098
I am studying for FAR right now and am very nervous about it…I have never been good at accounting. I am planning to schedule my test sometime in August 2019. Anyway, I need help with this problem:
On December 31, 20X3, Roe Co. leased a machine from Colt for a five-year period. Equal annual payments under the lease are $100,000 (including $5,000 annually allocated to taxes and insurance) and are due on December 31 of each year. The first payment was made on December 31, 20X3, and the second payment was made on December 31, 20X4. The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $417,000. The lease is appropriately accounted for as a finance lease by Roe. In its December 31, 20X4 balance sheet, Roe should report a lease liability of
D.248,700 [84%] correct.
I understand the calculations. This seems to be calculating like an annuity due, but from what I can tell from the question, it seems like an ordinary annuity (since the payments are being made at the end of the year). Can anyone explain this?July 9, 2019 at 9:03 pm #2545713stanParticipant
Yes, It is an annuity due. In real world most finance leases are annuity due unless otherwise stated. The easy way to understand and remember finance leases is to consider it as the way you bought your first car when you came straight out of college. You went to the dealership and financed your car through Allie Bank. The down payment is your first annuity due right there plus the plus the dealership rip off (just joking) but you have to remember that in a finance lease it is rare to get the finance without a down payment. The down payment will always include the first annual( or month) payment and the remaining balance is financed.
12/31/Y3 10% 100,000 317,000
12/31/Y4 100000 31,700 68,300 248,700
12/31/Y5 100000 24,870 75,130 173,570
12/31/Y6 100000 17,357 82,643 90,909
12/31/Y7 100000 9,091 90,909 (0)July 10, 2019 at 3:01 pm #2547255ParkerParticipant
Halfway through F8 for FAR and testing at the end of the month. I have been doing lectures and all mcq for each module and I am getting exhausted. This is my last test and I know FAR is a beast but is this the most efficient method at this point. Any suggestions would be great.July 10, 2019 at 5:06 pm #2547516
Just keep grinding through. I just retook FAR on Saturday, I failed the first time by 2 points. DEFINITELY KNOW Governmental & NFP. I got a ton of MCQ’s on both those topics. FAR is a beast, but you just need to know a little of everything imo. Hoping that was the last time I have to take a CPA exam. Good luck!July 13, 2019 at 12:06 pm #2553810
Nome Co. sponsors a defined benefit plan covering all employees. Benefits are based on years of service and compensation levels at the time of retirement. Nome determined that, as of September 30, 20X2, its projected benefit obligation was $380,000, and its plan assets had a $290,000 fair value. Nome's September 30, 20X2, trial balance showed prepaid pension cost of $20,000. In its September 30, 20X2, balance sheet, what amount should Nome report as additional pension liability?
The correct answer is A, and I see they added the $90(difference between PBO and FV) with the $20. Can anyone show me journal entries for this?July 14, 2019 at 1:25 pm #2555883babybirdParticipant
My boss told me to take FAR first. I did and passed it the first time. BEC took two tries, AUD took 3 tries and I didn’t think I would ever pass REG because I was tired of studying. Finally after 3 times, I passed REG, but by then FAR expired. I am dying studying for this test, but I have to close this chapter in my life. A contact on LinkedIn said it took 37 times and he passed each section twice, but he finally became a CPA. Suit up and get it done. I feel your pain. Muhammad Ali said, “suffer now and live the rest of your life as a champion.”July 15, 2019 at 8:15 pm #2558667
Caradonna Company has 100,000 shares of $5 par common stock issued and outstanding as of January 1, 20X5. The shares were originally issued for $22 per share. On February 3, 20X5, Caradonna repurchased 5,000 shares at $19 per share for the purposes of retiring them. On April 10, 20X5, Caradonna repurchased an additional 2,000 shares at $25 per share, with the same intention. No other transactions involving common stock occurred during the year. What will be the balance in additional paid in capital from retired stock as a result of those transactions?
The correct answer is 9,000. Can anyone explain this a bit for me? I tried doing some journal entries, but I'm not sure they were rightJuly 16, 2019 at 7:05 am #2559399CatParticipantJuly 16, 2019 at 7:48 pm #2561004July 17, 2019 at 8:38 am #2561739CatParticipantJuly 17, 2019 at 2:10 pm #2563167piggyqueenieParticipant
I need a little help with this question:
Farm Co. leased equipment to Union Co. on July 1, Year 1 and properly recorded the sales-type lease at $135,000, the present value of the lease payments discounted at 10%. The first of eight annual lease payments of $20,000 due at the beginning of each year was received and recorded on July 3, Year 1. Farm had purchased the equipment for $110,000. What amount of interest revenue from the lease should Farm report in its Year 1 income statement?
I get how to calculate the problem to get the correct answer A) 5,750, but no where in the module in Becker does it talk about any subsequent journal entries for a sales-type lease so I assumed the answer would be zero…
Do I just do the subsequent journal entry similar to the one under a direct financing lease?
Thanks!July 19, 2019 at 11:59 am #2568213
@Cat, I think Ninja is a good supplement since it has the adaptive learning for the mcq's. It knows what you don't know, or struggle with perhaps. It has helped me.
@Piggyqueenie, sometimes you have to go online and find lectures on small things that your review course doesn't cover in detail. I used several lectures online to get a more clearer understanding on leases. But again, Ninja is a good supplement but online is free, 🙂
When do you guys plan to test?July 20, 2019 at 10:51 pm #2572071kaithepugParticipant
FAR is going to be my first exam. I just graduated last May, but I also started working full time (40-45 hours a week). I am currently using Wiley's CPAexcel platinum. For those who uses CPAexcel, do you practice the test bank right after each lesson, or did you only start using it after section or even after you're done with all the lessons? What I do right now is read the text, take an assessment, and test bank. I also used to do post assessment and tbs, but it's taking so much of my time. I'm still waiting for my NTS, but I am planning to take it on September 9 and I'm not sure it's doable since I'm only starting with the consolidated f/s.July 21, 2019 at 7:09 pm #2573886
@Kaithepug, You might have to short cut some of the steps with Wiley to get through the materials. I tried Wiley, I love their focus notes and their flash cards, but the course itself was too detailed for me. You might want to get through the materials (lectures), or read a the chapters and take good notes and then go for the mcq's. Just a thought.July 21, 2019 at 9:56 pm #2574180kaithepugParticipant
@Tncincy – Thank you so much! I've been stressing so much on the materials! Where can I find the focus notes online? I just purchased the ebook version, so I don't have any printed materials. I know where to find the flash cards, but not too sure about the focus notes. Also, did you mean go through all the materials (all chapters) and then hammer the test banks in the end? I'm currently on the consolidated financial statements and been doing post assessment every lesson, but not the test bank yet.July 22, 2019 at 5:22 pm #2576088Hopefulcpa1234Participant
Hi everyone, wondering if anyone has any successful tips on how to conquer the governmental section? I am really struggling to get all (if any) of the information to process for me logically. Wondering if it is worth it to watch the NINJA plus videos on governmental accounting? I am also using becker along with NINJA. Any tips would be appreciated!July 22, 2019 at 9:30 pm #2576628
MCQs, MCQs & more MCQs. It’s the best way I learned governmental & I wrote notes on the ones I got wrong or thought I may forget then I rewrote them until I was sick of seeing them.
FAR Study Group 2020 - Page 7
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