ACG3101 Discussion Board

mikey896
Sep 14, 2022
1 min read

Feel free to ask any questions regarding the new FAR 1 material or in general about the class! Remember, its Automatic!

If you have questions about a specific textbook problem or question in a review packet, please be very clear (Exam 1 Review, page 18, question #, etc).

Good luck studying!

284 Comments

m.denhaese

8 hours ago

With nonmonetary exchanges, if the 25% cash rule applies only when cash is received, then why is it used in part b of this example, where there is no commercial substance and cash is only given up by the company.

joshuagordon

a day ago

Are there answers to the Mock exam A FRQs?

Max Schwartz

a day ago

Replying to

^See above reply

Evan Feldstein

2 days ago

Are there solutions to the Monk Mock Exam B FRQ's? If not can you give the solution for the SYD question 28.

Max Schwartz

a day ago

Replying to

Hey Evan! For question 28 on Monk Mock B, this is what I did for the SYD depreciation. First I found n, which I got by taking (9 x 10)/2 = 45. Then I found the Depreciation per n = ($121,000 - $26,500)/45 = $2,100. From there I would start doing my actual depreciation calculations.

For 2022, since this is year 1, you would multiply:

9 x $2,100 x 10/12 (because the asset was purchased on Feb 28) = $15,750.

Then 2023 is where it gets kinda weird.

You have to use the leftover 2/12 from year 1 depreciation and also add 10/12 of year 2 depreciation. It look something like this:

(9 x $2,100 x 2/12) + (8 x…

Lily Andersen

3 days ago

For Exam Review Chapter 11, end of packet problem number 9- shouldn't Parker's Paper inc be recording the goodwill, and not Club Shore because Parker's paid more than Club Shore's net assets were worth, not the other way around?

Max Schwartz

a day ago

Replying to

Hi Lily! Great question and I think you're totally right on this one. The main point of the problem was to be able to calculate goodwill with the given facts (i.e. difference in BV vs FV of assets of the company being acquired), but the problem should have been asking for the goodwill recorded by Parker's Paper, not Club Shore. A good rule of thumb is the acquisitioner is always going to be the one recording the Goodwill.

bradygrooters

4 days ago

For part C on the interest capitalization practice question on page 6 of the exam 3 review packet: Why is the $400,000 of expenditures matching the loan amount not multiplied by 10/12. I thought that when the project was only 10 months interest had to be adjusted to match that. Therefore, when calculating avoidable interest you would multiply 400,000 x .05 x 10/12. Is this incorrect?

Max Schwartz

3 days ago

Replying to

Good question! This can be confusing, but when calculating the interest for the loan, you wouldn't multiply $400,000 x .05 x 10/12. When calculating the Weighted Avg Accumulated Expenditures it makes sense to mulitply the $400,000 expenditure on Jan 1 by 10/12 because the construction period lasts for only 10 months. However, the loan and respective interest on the loan is going to be calculated as if it extended for the entire year. Unless the problem states otherwise, you should assume that the loan is going to be until December 31, not October 31. So, when calculating interest for this loan you wouldn't include the 10/12 and would caluclate it similarly to how you did the other two outstanding loans.…