FAR Study Group Q1 2017

CPA Exam Forum FAR FAR Review FAR Study Group Q1 2017

This topic contains 2,502 replies, has 106 voices, and was last updated by  mckan514w 1 month, 2 weeks ago.

Viewing 30 posts - 31 through 60 (of 2,503 total)
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  • #1399002
    mtaylo24
    mtaylo24
    Participant

    @ginic 70s on your first run? One can only dream, but it does seem like you put in mad work up front.

    Here is the official answer explanation:

    Answer (B) is correct.
    On January 1, Year 1, the bonds were issued at $88,022 [($5,000 annuity payment × 3.99271 present value of an 8% annuity) + ($100,000 bond repayment × .68058 present value of $1 at 8%)], which is at an $11,978 discount ($100,000 – $88,022). The interest expense in the first year is $7,042 ($88,022 × 8%), and the coupon payment is $5,000. This means $2,042 ($7,042 – $5,000) of the value of the discount is amortized in Year 1. Therefore, the value of the net bonds payable at the end of Year 1 is $90,064 ($88,022 + $2,042).


    A: 60, 61, 61, 78 (Expires May 31)
    R: 55, 69, 74, 75
    B: 71, 72, 73, 76
    F: 52, 54, 72 (May 23rd)
    AUD - 78
    BEC - 76
    FAR - NINJA in Training
    REG - 75
    #1399028
    GiniC
    GiniC
    Participant

    Seems like it…


    Prep using Becker live classes
    AUD - 95
    BEC - 82
    FAR - 86
    REG - 82
    #1399032

    Spartans92
    Participant

    Ugh.. I hate FAR!! and I hate studying while working. Lot of people do it and I have to applaud for their effort. Work is getting much busier with tax season coming up too. Luckily I have the extended holiday break.. Still on F6 and Exam is in 3 weeks.. WTF!! I just can't seem to have the energy to study after work… how do you guys do it?

    I am so behind.. Still struggling with bonds 🙁 This section is so overwhelming. I just wanna shoot myself and call it done.


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line 🙁

    #1399047
    GiniC
    GiniC
    Participant

    @Spartans – I negotiated a shifted work-day. I get up at 6 AM, study several hours, and get to work at 10 instead of 8:30. Somehow I don't mind working at 8 PM as much as I mind studying then!


    Prep using Becker live classes
    AUD - 95
    BEC - 82
    FAR - 86
    REG - 82
    #1399067
    mtaylo24
    mtaylo24
    Participant

    @Spartans, Have you tried mornings? It actually isn't half bad. I'm not sure where I have been finding my energy lately. It must have been that FAIL with a capital F. I have been determined ever since…


    A: 60, 61, 61, 78 (Expires May 31)
    R: 55, 69, 74, 75
    B: 71, 72, 73, 76
    F: 52, 54, 72 (May 23rd)
    AUD - 78
    BEC - 76
    FAR - NINJA in Training
    REG - 75
    #1399073

    Cjsr
    Participant

    OK, Kieso Weygandt Warfield 14th Ed p. 714. “Companies report bond discounts and bond premiums as a direct deduction from or addition to the face amount of the bond.” “Report” I.e. on balance sheet, vs. “record” in ledger? Words have technical meanings. Same section in KWW also notes that “Discount” is a contra account, not an asset, and “Premium” is an “adjunct” = liability valuation account. This is starting to gel a little.


    BEC Jan 2016 83 Becker FastPass
    REG Jan 2016 83
    AUD May 2016 92
    FAR Jul 2016 74
    FAR Mar 2017. 91 Becker book + NINJA 10-point combo
    #1399079
    mtaylo24
    mtaylo24
    Participant

    Whipped out the ol school Intermediate Accounting book on em! Tell em why you're mad! Seriously, these Gleim questions are ridic, but I would rather be over-prepared this go-round…


    A: 60, 61, 61, 78 (Expires May 31)
    R: 55, 69, 74, 75
    B: 71, 72, 73, 76
    F: 52, 54, 72 (May 23rd)
    AUD - 78
    BEC - 76
    FAR - NINJA in Training
    REG - 75
    #1399086
    GiniC
    GiniC
    Participant

    @cjsr

    Took me a while to find it in my 15th edition, but I did. This makes MUCH more sense now than it did when I was taking the course! The discount is also a valuation account – both premium and discount sort-of adjust the value of the bond from face (par) to what would have been fair value on the date of issue. We've got this!


    Prep using Becker live classes
    AUD - 95
    BEC - 82
    FAR - 86
    REG - 82
    #1399088
    mtaylo24
    mtaylo24
    Participant

    Have you guys been using that thing? I actually think that I have a pdf of it somewhere in the cloud. I might have to start using it! Haven't touched that in years…


    A: 60, 61, 61, 78 (Expires May 31)
    R: 55, 69, 74, 75
    B: 71, 72, 73, 76
    F: 52, 54, 72 (May 23rd)
    AUD - 78
    BEC - 76
    FAR - NINJA in Training
    REG - 75
    #1399095

    Spartans92
    Participant

    I haven't really tried studying in the morning because Im not an early bird lol. I go to bed around midnight every night so I tend to study after dinner around 8-11 per night. Weekdays I break it down into sessions. I'd do 9-11:30 then 1-3 then 7-9 again. However, I read the book and that takes up majority of the time..

    It just bothers me when I take much longer than expected. I can't focus for this section, not sure if its because the material or I'm just burned out. I just hope to pass with 75 this round.. As long as I knock FAR down Audit shouldn't be too bad.


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line 🙁

    #1399116

    Spartans92
    Participant

    Wow.. so I just googled a question and it brought me back to a thread I posted few months ago in April. At that time I got the question right and was explaining it to a fellow Ninja but Im struggling now on a retake. DANG that is some cray cray BS…Kind of funny how much worse a retake actually is..

    I wonder what happened to my brain juice now!! May the force be with you.


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line 🙁

    #1399133

    Cjsr
    Participant

    Aha! And we can't just debit “bonds payable” because at the end we still have to really write a check for $100K.


    BEC Jan 2016 83 Becker FastPass
    REG Jan 2016 83
    AUD May 2016 92
    FAR Jul 2016 74
    FAR Mar 2017. 91 Becker book + NINJA 10-point combo
    #1399140
    mtaylo24
    mtaylo24
    Participant

    Done for the night. Leases tomorrow…I shall be posting some interesting questions.


    A: 60, 61, 61, 78 (Expires May 31)
    R: 55, 69, 74, 75
    B: 71, 72, 73, 76
    F: 52, 54, 72 (May 23rd)
    AUD - 78
    BEC - 76
    FAR - NINJA in Training
    REG - 75
    #1399148

    Spartans92
    Participant

    ok guys, I should know this because its literally perm and temp. differences from REG. But somehow I forgot everything already. If I have tax depreciation in excess of book.. Why am I deducting it out of book income to get tax income??

    Here is the question:
    Dunn Co.'s income statement reported $90,000 income before provision for income taxes. To compute the provision for federal income taxes, the following data are provided:
    Rent received in advance $ 16,000
    Income from exempt municipal bonds 20,000
    Depreciation deducted for income tax purposes in excess of depreciation reported for financial statement purposes 10,000

    Enacted corporate income tax rate 30%

    What amount of current income tax liability should be reported in Dunn's December 31 balance sheet?

    I get everything up till the depreciation.. I understood it when I was studying REG just a month ago. LOL.


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line 🙁

    #1399251

    A1lessio
    Participant

    If tax depreciation is in excess of deprecation reported for f/s purposes it's a deduction on the tax return. Depreciation reduces taxable income, so if there is excess depreciation to be taken then keep reducing taxable income. Any chance the answer is $22,800? Ugh, I totally forgot this chapter, I haven't looked at in like a month.


    People who subject themselves to the strictest discipline, who give up certain pleasurable things in order to obtain a goal are the happiest of men.
    AUD - 86
    BEC - 70
    FAR - 78
    REG - 84
    #1399268

    BondVillain
    Participant

    Just beginning governmental accounting – OMG this a monster. Using Ninja plus videos and Wiley CPAexcel book. Any tips or strategies to approach this topic?


    Q3 2015: AUD 87
    Q2 2016: REG 85
    Q3 2016: BEC 73, Retake 80
    Q1 2017: FAR
    AUD - 87
    BEC - 80
    FAR - NINJA in Training
    REG - 85
    #1399272

    Cjsr
    Participant

    For me, the linchpin of governmental accounting is the concept of encumbrance. You encumber funds in order to keep people from overspending their budgets, I.e. to make sure everyone knows that money is committed. Everything else makes sense around that.


    BEC Jan 2016 83 Becker FastPass
    REG Jan 2016 83
    AUD May 2016 92
    FAR Jul 2016 74
    FAR Mar 2017. 91 Becker book + NINJA 10-point combo
    #1399326

    Spartans92
    Participant

    Bingo!! 22800 is the answer. I think I got this part down 🙂 Thanks!

    I hate DTL and DTA


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line 🙁

    #1399358

    Tarheel83
    Participant

    Hey ninjas! I am going to plan to participate in the Q1 forums this time around. I just got through taking FAR for the first time in Q4 and came up short with a 73, so I am going to retake it on Jan 7th. Then I am off to studying for REG for the first time, with an exam date on Feb 4, and then a retake on BEC scheduled for March 6 (which i failed with a 74 on my first attempt back around July/August).

    So to say the least I am trying to get as many of these exams done in Q1 as possible. All the best to everyone studying for their exams in this window.

    Also, @mtaylo24 I see that you have drafted a pdf of all the JE's that you plan to study for FAR. Would it be possible to get a copy of that document? I had planned to draft up a list of JE's myself this time around and put a little bit more focus on JE's.

    #1399383

    stilgoin
    Participant
    #1399506
    #1399527

    BondVillain
    Participant

    @stilgoin thanks, very helpful. Also, does anyone know if the exam asks research questions for GASB?


    Q3 2015: AUD 87
    Q2 2016: REG 85
    Q3 2016: BEC 73, Retake 80
    Q1 2017: FAR
    AUD - 87
    BEC - 80
    FAR - NINJA in Training
    REG - 85
    #1399553

    stilgoin
    Participant

    I wondered about GASB research as well, but I only had access to FASB on the times I have tested for FAR, so I am assuming no. I did tell them in the survey at the end of one of my FAR exams that I thought it was unfair to be asked about GASB issues in the sims since we had no access to GASB. I’m sure they threw out all governmental sims after my complaint. (<<<insert snarky sarcasm and eyes rolling here)


    Stilgoin, CPA

    “No one ever fails the CPA exam. There are only those who give up.

    #1399569

    BondVillain
    Participant

    Here's a link to the annual report (that includes the govt financial statements) for the City of Boston:

    http://www.cityofboston.gov/images_documents/FINAL%20CAFR%2012-29-15_PM2_Secure_tcm3-52761.pdf


    Q3 2015: AUD 87
    Q2 2016: REG 85
    Q3 2016: BEC 73, Retake 80
    Q1 2017: FAR
    AUD - 87
    BEC - 80
    FAR - NINJA in Training
    REG - 85
    #1399715
    mtaylo24
    mtaylo24
    Participant

    A: 60, 61, 61, 78 (Expires May 31)
    R: 55, 69, 74, 75
    B: 71, 72, 73, 76
    F: 52, 54, 72 (May 23rd)
    AUD - 78
    BEC - 76
    FAR - NINJA in Training
    REG - 75
    #1399770
    mtaylo24
    mtaylo24
    Participant

    This one had me stumped, but I finally got it…

    Question: 5 Main, a pharmaceutical company, leased office space from Ash. Main took possession and began to use the building on July 1, Year 1. Rent was due the first day of each month. Monthly lease payments escalated over the 5-year period of the lease as follows:

    Period – Lease payment

    7/1/Year 1 – 9/30/Year 1 – $0 – rent abatement during move-in, construction
    10/1/Year 1 – 6/30/Year 2 – 17,500
    7/1/Year 2 – 6/30/Year 3 – 19,000
    7/1/Year 3 – 6/30/Year 4 – 20,500
    7/1/Year 4 – 6/30/Year 5 – 23,000
    7/1/Year 5 – 6/30/Year 6 – 24,500

    What amount would Main show as deferred rent expense at December 31, Year 4?

    A. $0
    B. $26,850
    C. $53,700
    D. $71,550


    A: 60, 61, 61, 78 (Expires May 31)
    R: 55, 69, 74, 75
    B: 71, 72, 73, 76
    F: 52, 54, 72 (May 23rd)
    AUD - 78
    BEC - 76
    FAR - NINJA in Training
    REG - 75
    #1399898

    Spartans92
    Participant

    Need help with this question…
    White Industries started their operations on January 1, Year 1 and recorded $400,000 in warranty expense during the year. Warranty expense was the only difference between the company's pretax financial income and its tax return income of $900,000. White will be required to pay these warranties at a rate of $100,000 per year beginning in Year 2. Although White fully expects to earn in excess of $100,000 in Year 2 and Year 3, the company believes it is more likely than not that it will incur a loss after Year 3. The enacted tax rate is 25% in current and future periods. What will White record as its income tax expense in Year 1?

    a.
    $125,000
    b.
    $225,000
    c.
    $100,000
    d.
    $175,000

    Not really understanding where to start.. Thanks!


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line 🙁

    #1400007

    Tarheel83
    Participant

    @mtaylo24 Thanks for the link. I am definitely going to look over these JE's.

    Also, on the deferred rent expense problem for lease payments, the answer is D, $71,550. Thanks for sharing.

    #1400045

    BondVillain
    Participant

    Grove Township issued $50,000 of bond anticipation notes at face amount in the current year and placed the proceeds into its capital projects fund. All legal steps were taken to refinance the notes, but Grove was unable to consummate refinancing. In the capital projects fund, what account should be credited to record the $50,000 proceeds?

    A. Other Financing Sources Control

    B. Revenues Control

    C. Deferred Revenues

    D. Bond Anticipation Notes Payable


    Q3 2015: AUD 87
    Q2 2016: REG 85
    Q3 2016: BEC 73, Retake 80
    Q1 2017: FAR
    AUD - 87
    BEC - 80
    FAR - NINJA in Training
    REG - 85
    #1400048

    BondVillain
    Participant

    @tarheel83 how did you arrive at answer D?


    Q3 2015: AUD 87
    Q2 2016: REG 85
    Q3 2016: BEC 73, Retake 80
    Q1 2017: FAR
    AUD - 87
    BEC - 80
    FAR - NINJA in Training
    REG - 85
Viewing 30 posts - 31 through 60 (of 2,503 total)

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