[akaumor]

Does anybody understand the logic behind answer D, as it clearly should be B.

13. A company reported net income available to common stockholders of $2,000,000 for the year ended December 31, year 2. The

company had 1,500,000 shares of common stock outstanding as of January 1, year 2, and issued 500,000 additional shares of

common stock on May 1, year 2. What amount is the company’s basic earnings per share for the year ended December 31, year 2?

A. $1.00

B. $1.09

C. $1.20

D. $1.33

[KSOZE]

Looks like a mistake to me. Makes me wonder if this (or one like it) could be the one question difference between getting a medium testlet for your next one or a hard one.

BEC - 80
FAR - 81 (third attempt)
AUD - waiting for score 8/23
REG - 09/08/2016 - going to cram and wing it

OH Ethics - Completed

[Crunchtime]

I agree, this seems like an easy question and I calculated it as B as well.

AUD-77
BEC-70,73,68,74 SH##!!!!!, 80
REG-73,76
FAR -74,82

Ethics here I come!!

[akaumor]

Question 16 it says correct A, but again it should be B. These are the questions which AICPA released, can't believe they release wrong answers.
16. A company has an operating lease for its office space. The lease term is 120 months and requires
monthly rent of $15,000. As an incentive for the company to enter into the lease, the lessor granted the
first eight months' rent at no cost. What amount of monthly rent expense should be recognized over the
life of the lease?
A. $14,000
B. $14,062
C. $15,000
D. $16,072

[Crunchtime]

@akaumor calulcate that one, I thought it would be (15k x 112) /120?

AUD-77
BEC-70,73,68,74 SH##!!!!!, 80
REG-73,76
FAR -74,82

Ethics here I come!!

[akaumor]

Your calculation fits perfectly, but would not we need to distribute payments equally by the total lease term which is 128, do not understand why it is divided by 120.

[KDub87]

@akaumor the lease term is 120 as stated, the first 8 are just not charged rent, they are not additional months. Therefore 120 months but only 112 payments.

FAR 2/16 - 82
BEC 2/16 - 88
REG 4/16 - 89
AUD 5/16 - TBD

[Author]

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