[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[NJPRU]

Yeah lol. a 2013 released question. haha

B is correct.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[NJPRU]

Next:

Palmyra Co. has net income of $11,000, a positive $1,000 net cumulative effect of a change in accounting principle, a $3,000 unrealized loss on available-for-sale securities, a positive $2,000 foreign currency translation adjustment, and a $6,000 increase in its common stock. What amount is Palmyra's comprehensive income?

a. $4,000

b. $10,000

c. $11,000

d. $17,000

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

@JRosen–Can you explain how are both of them correct? I read Kenada's as you still report Current Liabilities at $500K, but Stoleway says to reclass the amount for the CS issuance to noncurrent liabilities. Am I just really tired??

[Anonymous]

@NJPRU–B–$10,000

[rvcpa]

b.

[ChristieF]

B. $10,000

[NJPRU]

Are you sure?

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

B. $10000

[NJPRU]

Well I guess if 3 of you got B, chances are you're all right! 😛

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

I think the $1000 change in principle goes to Beginning Retained Earnings and the common stock goes to Equity so you have Net Income + OCI = Comprehensive Income and the only 2 things that affect OCI in that list are the $3,000 loss on AFS and the 2000 for foreign currency translation so NI of $11K +$2K-$3K = 10K

[NJPRU]

One more before I go to my meeting:

A company has a parcel of land to be used for a future production facility. The company applies the revaluation model under IFRS to this class of assets. In Year 1, the company acquired the land for $100,000. At the end of Year 1, the carrying amount was reduced to $90,000, which represented the fair value at that date. At the end of Year 2, the land was revalued, and the fair value increased to $105,000. How should the company account for the Year 2 change in fair value?

a. By recognizing $10,000 in other comprehensive income.

b. By recognizing $15,000 in other comprehensive income.

c. By recognizing $15,000 in profit or loss.

d. By recognizing $10,000 in profit or loss and $5,000 in other comprehensive income.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[rvcpa]

Oak Co., a newly formed corporation, incurred the following expenditures related to land and building:

County assessment for sewer lines $ 2,500

Title search fees 625

Cash paid for land with a building to be demolished 135,000

Excavation for construction of basement 21,000

Removal of old building $21,000 less salvage of $5,000 16,000

At what amount should Oak record the land?

a. $138,125

b. $153,500

c. $154,125

d. $175,625

[Kenada]

Edit – CPA mom did it.

Thank you 🙂

CA Candidate. 05/27/2014 ~ 786/110
I am done!!

[Anonymous]

You made me doubt myself–you meanie! Keepin it PG. 🙂

[rvcpa]

btw nj its D

[Author]

Replies