Are CPA questions actually worded the same way?
    user-506 - 08/21/2018, 10:12 pm
    Never in the question does it explain that a dollar for dollar reduction upon the 50,000 residual based failure of a collection of AR. Are we just supposed to know that? Seem, unclear at best. If you read the question. I would seem the total 50,000 would be forfeited. I guess my concern is too often in these CPA questions there are assumptions made that the reader understand exactly what the question is asking but, like this example, it was not as clear at it may seem.
    Partnership Contribution - Nontaxable
    user-1528 - 08/20/2018, 5:38 pm
    I thought the new partners had to control 80% or more for contributions to a partnership to be nontaxable. Since this one doesn't qualify, I thought the basis for the new partner would be the fair value (minus liability taken on by other partners).
    Not following this answer- just yet
    SOlid-56181 - 08/20/2018, 1:17 am
    Why is it a loss to Hannah if she has purchased vs. been gifted the stock. I am interpreting the answer that she 1st has a loss which she can use to offset the gain from the sale but I am not following the loss part? Help?
    Raven-59294 - 08/19/2018, 7:41 pm
    A consol has no maturity date as well and is in perpetuity, so wouldn't it also be correct?
    Can be factoring or discounting
    Raven-59294 - 08/19/2018, 7:30 pm
    Given the scenario and terms provided in the question, the answer here could easily have been discounting as well. The difference is not clearly stated.
    Discretion to Refinance
    Raven-59294 - 08/19/2018, 12:39 pm
    It doesn't state that the company has the discretion to refinance the bond agreement, as such, events after the reporting period will only be disclosed. Thus, the bond must be reported as a current liability.
    No Present Value?
    Raven-59294 - 08/19/2018, 12:36 pm
    Shouldn't we get the present value of all future payments based on the original effective interest rate? What's the reason behind this answer?
    I think this is wrong
    Steven-66267 - 08/16/2018, 11:06 am
    This company only buy this equipment on Out so it buy more than 40% of its capital in the last quarter. It can only use mid-quarter depreciation.
    I think the answer for this should be $285,000
    Frank-5535 - 08/15/2018, 8:19 pm
    If you plug in some numbers for the calculations. Let's say Beginning Inventory was initially $200,000 and they purchased $80,000 and had Ending Inventory of $20,000. That would make the year 2 Ending be the $260,000 in the problem. If $18,000 was missed in the count for year one that would change the $200,000 to $218,000 and if $7,000 was counted twice, it would make the corrected ending inventory $13,000. With the new numbers, $218,000 + $80,000 - $13,000 = $285,000. But the listed answer is $235,000. Is this question wrong or am I missing something.
    Revenue Recognitiion - Right of Return
    John-29951 - 08/15/2018, 1:24 am
    For this question, the explanation says the amount of revenue should be decreased by an estimated amount until the return period expires, however, how can this be done if the company cannot estimate the amount of returns? Why isn't the answer option C?
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