[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

[WANNABE_CPA]

I took the practice test…and i got 83,80,73 in three testlets…average comes to be 78%.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[stoleway]

D is correct.

Here is another one

The Tax Court ruled in favor of the entity on October 25, Year 5. Litigation involved deductions claimed on the Year 1 and Year 2 tax returns. The entity had provided in accrued taxes payable for the full amount of the potential disallowances. The Internal Revenue Service will not appeal the Tax Court’s ruling. How should this event be presented in the financial statements?

A. Disclosure by means of supplemental, pro forma financial data.

B. Adjustment of the financial statements for the year ended September 30, Year 5.

C. No financial statement disclosure necessary.

D. Disclosure in a note to the financial statements.

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

Mass-CPA

[Anonymous]

D. Disclosure in the Notes?

[NJPRU]

nm lol i can't read.

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

D ? – that was my first thought

Then I started thinking Or wait its in favour of the company then there should be no change in FS …..

[stoleway]

Answer is B

Just when I thought you cannot accrue a gain contigent:(

The ruling of the Tax Court provides additional evidence with respect to conditions that existed at the date of the financial statements and affects the estimates used in their preparation. Consequently, the settlement in the subsequent events period for an amount different from that recorded requires the client to adjust the statements.

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

Mass-CPA

[stoleway]

A company’s foreign subsidiary operation maintains its financial statements in the local currency. The foreign operation’s capital accounts would be translated to the functional currency of the reporting entity using which of the following rates?

A. Current exchange rate at the balance sheet date.

B. Historical exchange rate.

C. Functional exchange rate.

D. Weighted-average exchange rate.

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

Mass-CPA

[Anonymous]

B – Historical?

I kind of am thinking about the flow chart that was in the Wiley book – I can picture it but i don't remember it well. LOL

I remember something about remeasurement if Functional is not the same as Reporting.

[willpassby2014]

Big Company buys 90 percent of the outstanding common stock of Little Company for $900,000. Big did not have to pay a control premium to get these shares so that the price paid is viewed as a reasonable representation of the value of the new subsidiary. Little has identifiable assets and liabilities with a net book value of $710,000 but a fair value of $820,000. On a consolidated balance sheet on that date, what should be reported as goodwill?

A $80,000

B $162,000

C $180,000

D $290,000

BEC Passed
FAR Passed
AUD Passed
REG Passed

[NJPRU]

b. historical.

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

IM GOING TO BE A CPA!!!!!

[willpassby2014]

Historical exchange rate is the answer

BEC Passed
FAR Passed
AUD Passed
REG Passed

[NJPRU]

willpass, I'm going to say 162k.

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

IM GOING TO BE A CPA!!!!!

[willpassby2014]

NJPRU it is 180k. 90% is 900k so 100% is 1 million including minority interest and then reduce net assets…remember you have to include minority interest share also to arrive at GW

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

oh buggers

[willpassby2014]

The paper division of a company generates an operating profit of $10,000 per month. On the final day of Year One, company officials decide to sell this division which has a book value of $540,000. These officials believe they can sell the paper division for $570,000 but only after spending $70,000 needed to make the sale. The paper division meets the rules to be classified as an asset held for sale. In addition, the division qualifies as a discontinued operation. It is actually sold for the anticipated amount during February, Year Two. Ignore income taxes. What does the company report at the bottom of its Year One income statement for the discontinued operation?

50k

80k

120k

0k

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Author]

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