[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]

double post… even my mouse is crazy

[Anonymous]

they are making sure we know arithmetic, just in case we managed to get through 10-11 years of school and 4-5 years of college without learning it lol

[stoleway]

The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal profit margin. The original cost of the inventory item is below the net realizable value less the normal profit margin. Under the lower-of-cost-or-market (LCM) method, the inventory item should be valued at

A. Net realizable value less the normal profit margin.

B. Original cost.

C. Net realizable value.

D. Replacement cost.

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

Mass-CPA

[Anonymous]

B. Original cost

[Anonymous]

B. Original cost

I like these questions

[Anonymous]

B – original cost

[Anonymous]

stoleaway, its always good to use numbers when a mc like that is given.

assume original cost is 50

assume replacement is 70

assume net realizable value is 80

assume net realizable value less a profit margin is 60

when doing lcm, you take the middle of replacement, nrv, and nrv less profit margin and compare that to original cost and use whichever is lower, in this case its 70 compared to 50. the original cost is lower. choice B

[stoleway]

Original cost is correct….its just stupid on my part to get this wrong.

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

Mass-CPA

[Anonymous]

On April 1, Year 1, Saxe Inc, purchased $200,000 face value, 9% treasury bonds for $198,500, including accrued interest of $4,500. The notes mature July 1, Year 2, and pay interest semi-annually on Jan 1, and July 1. Saxe uses the straight line method of amortization. The notes were sold on Dec 1, Year 1, for $206,500, including accrued interest of $7,500. In its October 31, Year 1 Balance Sheet, the carrying amount of the investment should be:

A) $197,200

B) $194,000

C) $199,000

D) $196,800

[Anonymous]

Pensions – Govts – Installment sales and Long Term Contracts, debt restructure as my major weak areas.

[Anonymous]

I got this one correct, but doing the absolute wrong calculation, I hate when that happens.

[Anonymous]

D) $196,800 ?

[Anonymous]

Yep! Its D

[Anonymous]

which is right calculation? I did 6000/15*7= 2800 + 194000?

[Anonymous]

Yeppy – still at crazy dance LOL

[Author]

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