[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

[Not a Quitter]

NJPRU here I go again…still struggling:

On January 1, 20X1, Dallas, Inc., purchased 80% of Style, Inc.'s, outstanding common stock for $120,000. On that date, the carrying amounts of Style's assets and liabilities approximated their fair values. During 20X1, Style paid $5,000 cash dividends to its stockholders. Summarized balance sheet information for the two companies follows:

Dallas Style

12/31/X1 12/31/X1 01/01/X1

---

---

---

Investment in Style (equity method) $132,000

Other assets $138,000 $115,000 $100,000

Common stock 50,000 20,000 20,000

Additional paid-in capital 80,250 44,000 44,000

Retained earnings 139,750 51,000 36,000

The combination is accounted for as a purchase (initiated after June 30, 2001, but before a fiscal year beginning after December 15, 2008). What amount of total stockholders' equity should be reported in Dallas' December 31, 20X1, consolidated balance sheet?

A. $270,000

B. $286,000

C. $362,000

D. $385,000

Why is the answer A if the parent is only an 80% owner????

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[HopefulCPA0601]

No par value stock is common stock that issued without a par value listed on the face of the stock certificate. When a company has no par value stock, there is effectively no minimum baseline from which to price the stock, so the price is instead determined by the amount that investors are willing to pay, based on their perceived value of the issuing entity.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[samdiegoCPA]

@farts and hopeful – thanks! I had a problem during previous studying where it didn't give any value, I don't think. I'm re-writing notes now for no par value using Wiley 2014 and my Roger 2012 book didn't talk about this at all, I don't recall… so I'm trying to now learn this new info!

I'll post the problem when I come across it, but wanted to get it in my notes before hand.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[Mamabear]

@Allie–I'm sure you did great! You are braver than I am. There was no way I could go to work after an exam. Too mentally exhausted, especially after FAR.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[samdiegoCPA]

Preferred Stock:

I had in my old notes that Convertible Stock are included in P/S until it is converted. Is this true, or did I mean to put it under Callable? Or are both true?

AUD: 84
REG: 84
BEC: 79
FAR: 83

[Anonymous]

Sure Sam – when you see that qs please post it up – i am curious as well and we all will help 🙂

[HopefulCPA0601]

Which statement is true with respect to noncontrolling interest?

A) US GAAP records noncontrolling interest at the proportionate share of the value of identifiable net assets of the acquiree.

B) IFRS only records noncontrolling interest at the proportionate share of the value of identifiable net assets of the acquiree.

C) Both US GAAP and IFRS record noncontrolling interest at the proportionate share of the value of identifiable net assets of the acquiree.

D) IFRS permits recording noncontrolling interests at either fair value or the proportionate share of the value of identifiable net assets of the acquiree.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[NJPRU]

Nota – pay attention to the dates, the acquisition happened before a fiscal year beginning 12/15 whereas the other one happened after a fiscal year beginning 12/15.

First Problem you posted: “The combination is accounted for as an acquisition (initiated in a fiscal year beginning after December 15, 2008). What amount of total stockholders' equity should be reported in Dallas' December 31, 20X1, consolidated balance sheet?”

Second Problem you posted: “The combination is accounted for as a purchase (initiated after June 30, 2001, but before a fiscal year beginning after December 15, 2008). What amount of total stockholders' equity should be reported in Dallas' December 31, 20X1, consolidated balance sheet?”

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

IM GOING TO BE A CPA!!!!!

[Not a Quitter]

NJPRU- I did see the dates and they thru me off and frankly I don't see how they for into the equation! Plus, is the X supposed to be a 1 or a 0? I have to pray I don't get too many of these questions on the exam

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Anonymous]

@Mamabear – I think I have documented 3 selections today (Im in public accounting – auditing) in the 3 hours I've been here. Not productive at all hahaha.

[Anonymous]

A business combination is accounted for appropriately as a business acquisition. Which of the following should be deducted in determining the combined corporation’s net income for the current period?

Direct costs of acquisition…… General expenses related to acquisition

A. Yes .. No

B. Yes .. Yes

C. No… Yes

D. No.. No

[stoleway]

@kenada

C. No… Yes

Direct cost reduces APIC

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

Mass-CPA

[Anonymous]

Its B … Yes and yes..

I had picked C too .

Per ASC Topic 805, business acquisition costs should be treated as an expense in the period in which the costs are incurred.

[stoleway]

Oh shoot… I thought the direct issue cost was stock issue cost. I need to read well before answering lol

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

Mass-CPA

[Not a Quitter]

Hopeful- is it D?

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Author]

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