[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]

Yes if its impairments from the continuing operations

[southjerscpa]

Goodluck everyone! 🙂

FAR - 7.14.14
BEC - TBD
AUD - TBD
REG - TBD

[jrosen92770]

goverment – Cash Flows, which method must be used?

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]

Sure is Amanda, remember it also increases the accumulated depreciation account for PPE as well. 🙂

Good luck Zubairs!!

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

What about goodwill impairment?

[NJPRU]

Yes, that will too.. the Journal Entry is:

Loss on Goodwill Impairment XX

Goodwill XX

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

It would also be part of continuing operations since the Good Will is associated to it.

To record the entry,

DR Loss on Impairment and CR Goodwill for the necessary amount.

It won't be Extraordinary as Good Will would be considered Usual and could have frequent impairments.

[Anonymous]

Thanks guys- I'm starting to forget the basic concepts

[NJPRU]

My rule is nothing is extraordinary. LOL. Unless I know it's truly an extraordinary question.. I will attribute nothing to extraordinary. haha (probably a bad way of going at it, but it always works).

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

IM GOING TO BE A CPA!!!!!

[Guti]

I have a quick question. When you capitalize interest can you do it on Contraction for your own use or construction to be held for sale?

FAR-84
AUD-
REG-
BEC-

[jrosen92770]

On September 1, Year 1, Cobb Co. issued a note payable to National Bank in the amount of $900,000, bearing interest at 12%, and payable in three equal annual principal payments of $300,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, Year 2. At December 31, Year 2, Cobb should record accrued interest payable of:

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]

Sorry guysI have another question…

Since the FV of the land given up was 140,000 and boot paid of $50,000 = $190,000, the boot paid/total consideration= 26%, therefore shouldn't it be a monetary exchange, and all gains/losses would be recognized?

Madden Company owns a tract of land which it purchased in year 1 for $100,000. The land is held as a future plant site and has a fair market value of $140,000 on July 1, year 4. Hall Company also owns a tract of land held as a future plant site. Hall paid $180,000 for the land in year 3 and the land has a fair market value of $200,000 on July 1, year 4. On this date Madden exchanged its land and paid $50,000 cash for the land owned by Hall. It is expected that the cash flows from the two tracts of land will not be significantly different. At what amount should Madden record the land acquired in the exchange?

$150,000

$200,000

$160,000

$190,000

[NJPRU]

Capitalized Interest I believe is only for your own contstruction and cannot be applied for items that are held for sale. Someone correct me if I'm wrong, but that's my assumption based on the review I did last night.

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

@gian you can only capitalize on interest during construction and for assets that will be for your own use. You cant capitalize interest on construction of items held for sale, because that would be capitalizing interest on inventory technically. Also, you cant capitalize interest during intentional delays in construction

[Guti]

Thanks Amanda and NJPRU.

Amanda, I thought no gains or losses were recognized when the exchange lacks commercial substance and cash is paid.

FAR-84
AUD-
REG-
BEC-

[Author]

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