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!

289 Comments

dorinakelemen

2 days ago

When will Exam 1 Review be posted? And is there a packet for it?

franco.otto

Jan 22

Does Hinson require reversing entries in the first quiz/exam?

Jake Lynch

Jan 26

Replying to

I had the same question. Did you get an answer?

m.denhaese

Dec 08, 2025

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.

Max Schwartz

Dec 09, 2025

Replying to

This is a good question and requires the application of a weird rule, which can be found in chapter 9 of the textbook. Basically, if the cash received is 25% or more of the FV of the exchange, then it is technically considered a monetary exchange for both parties. In a monetary exchange, gains and losses are fully recognized. So, in this case even though the question states for part b the exchange lacks commercial substance, because the amount of cash given is greater than the 25% of the FV of the exchange, Cannondale will still have to recognize the full gain because this is now a monetary transaction. Hope this helped!

joshuagordon

Dec 07, 2025

Are there answers to the Mock exam A FRQs?

Mikey Brown

Dec 09, 2025

Replying to

a) Avoidable Interest (2022)

Expenditures on 11/1/22:

Land 120,000 + Title Insurance 3,000 + Survey 2,000 + Net Demolition 10,000 = 135,000

Weighted for 2 months: 135,000 × (2/12) = 22,500

Architectural Plans 60,000 × (2/12) = 10,000

Building Permit 6,000 × (1/12) = 500

WAAE = 22,500 + 10,000 + 500 = 33,000

Avoidable Interest = 33,000 × 6% = $1,980

b) Account Balances on 12/31/22

Land = 120,000 + 3,000 + 2,000 + (15,000 – 5,000) = 135,000

Building = 60,000 + 6,000 + 1,980 = 67,980

Interest Expense = Actual Interest (1,000,000 × 6% × 2/12 = 10,000) – 1,980 = 8,020

c) Building at Completion (11/1/23)

Building balance at 12/31/22: 67,980

2023 payments: 250,000 + 200,000…

Evan Feldstein

Dec 07, 2025

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

Dec 07, 2025

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…