[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

[stoleway]

@Amanda_88

That's true, but the permanent decline occurred in the prior year, so that was recognized in earning in yr2.

IFRS would have recognized the recovery in earning though.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

The relationship between income tax currently payable and income tax expense is that income tax currently payable

A. May be less than but not greater than income tax expense.

B. Is always equal to income tax expense.

C. May be greater than but not less than income tax expense.

D. May differ from income tax expense.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[NJPRU]

D.

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

D ?

[stoleway]

D is correct, but I wonder why A is not correct?

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

Wouldn't that be because you can either have a DTA or DTL .. so when you realize either of them it would lead your Income Tax payable in either direct dependent on which is now being recognized at that time.

Sorry not a great explanation but maybe someone can say this better than me.

[Anonymous]

D

[NJPRU]

Under IFRS, an entity that has elected to use the revaluation model for property, plant, and equipment (PPE) may revalue PPE as often as..?

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

I thought it would be annually – Under the revaluation model, revaluations should be carried out regularly, so that the carrying amount of an asset does not differ materially from its fair value at the balance sheet date

[NJPRU]

It is the revaluation method, however it is when it “determinable” it doesn't matter the timing; however, it usually is done annually at the balance sheet date. don't get caught up in the years (i.e. 1 year 3 years).. remember “determinable”.

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

On December 31, year 2, Marsh Company entered into a debt restructuring agreement with Saxe Company, which was experiencing financial difficulties. Marsh restructured a $100,000 note receivable as follows:

• Reduced the principal obligation to $70,000.

• Forgave $12,000 of accrued interest.

• Extended the maturity date from December 31, year 2 to December 31, year 4.

• Reduced the interest rate from 12% to 8%. Interest was payable annually on December 31, year 3 and year 4.

Present value factors

Single sum, 2 years @ 8% .85734

Single sum, 2 years @ 12% .79719

Ordinary annuity 2 years @ 8% 1.78326

Ordinary annuity 2 years @ 12% 1.69005

Marsh does not elect the fair value option for recording this note receivable. In accordance with the agreement, Saxe made payments to Marsh on December 31, year 3 and year 4. How much interest income should Marsh report for the year ended December 31, year 4?

$11,200

$0

$ 5,600

$ 8,100

I don't understand this – the logic given by Wiley and if someone can explain HOW they get to their answer that would be great.

[Anonymous]

That question was really hard- I remember it. You have to use the effective interest method, just like you would for a bond. You have to recalculate the present value of the payment with the new interest cost and discount it at the 12% rate.

[Anonymous]

Yes it is –

I honestly do not know if i am going to remember everything- its too much…

Answer is D for whoever wants to know.

[Anonymous]

I really don't think a question like that is going to be in multiple choice. That would be a really complex MCQ- I think Wiley includes it just to reinforce a concept.

[Anonymous]

Name three items (for each) that fall under operating, investing, and financing for US GAAP statement of cash flows:

[Author]

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