[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

[Anonymous]

@jasbeerch–yes sir!

[jrosen92770]

Is it C?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[NJPRU]

Sorry my brain isn't functioning at 1130

here's how to do it, i typed it wrong.

Franchise fee revenue ordinarily should be recognized at the earliest time when the franchisor has substantially performed or satisfied all material services or conditions relating to the franchise sale. Potter should not recognize revenue from initial franchise fees because the related services will not be performed until Year 2, and the earning process is therefore not complete. The franchisor should recognize the cash received (21 × $10,000 = $210,000), a net receivable for the principal amounts estimated to be collected (20 × $20,000 = $400,000), and unearned franchise fees ($210,000 + $400,000 = $610,000).

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

IM GOING TO BE A CPA!!!!!

[jrosen92770]

Deduct from cost of land, ok got it.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[missbehaved8907]

@CPAMommy – thanks!

REG (08/2011 - 73)
AUD (01/2013 - 63) (04/2013 - 72)
FAR (11/2013 - 61) (02/2014)- 71)
BEC - No attempt

[NJPRU]

Mamma – is it B?

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

IM GOING TO BE A CPA!!!!!

[missbehaved8907]

@NJ – No problem, i just wanted to make sure it wasn't MY brain that wasn't functioning!

REG (08/2011 - 73)
AUD (01/2013 - 63) (04/2013 - 72)
FAR (11/2013 - 61) (02/2014)- 71)
BEC - No attempt

[jrosen92770]

How many days from quarter end does a non accelerated filer have to file with SEC?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

@JRosen–It's B. You add any costs and deduct any proceeds incurred/obtained from preparing the land for it's intended purpose from the cost of the land before booking the land as an asset. The plant is a separate asset.

[missbehaved8907]

Thanks for the expanded explanation though, because in my first attempt I would have thought that the unearned franchise fee would have been only the $400,000 – and i thought the initial fee could be recorded upon receipt (silly me).

REG (08/2011 - 73)
AUD (01/2013 - 63) (04/2013 - 72)
FAR (11/2013 - 61) (02/2014)- 71)
BEC - No attempt

[Anonymous]

@JRo–Is it 60 days?

[NJPRU]

If its a quarter it's 45. i believe.

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

A lessee incurred costs to construct walkways to improve leased property. The estimated useful life of the walkways is 15 years. The remaining term of the nonrenewable lease is 20 years. The walkway costs should be

A Capitalized as leasehold improvements and depreciated over 15 years.

B Capitalized as leasehold improvements and expensed in the year in which the lease expires.

C. Expensed as incurred.

D. Capitalized as leasehold improvements and depreciated over 20 years

[Anonymous]

Agreed–45 days.

[jrosen92770]

If your obsolescence reserve was $125k at Jan 1, 1 and during the year you wrote off $33 k of inventory, but each month you reserved $5k, what should you reserve be at Dec 31,1?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Author]

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