M
    Depreciation
    Matt-41481 - 08/23/2018, 4:13 pm
    Why isn't there Depreciation in this? Shouldn't the answer be a 1,170,000 increase in unrestricted net assets?
    1
    S
    Wrong answer
    Steven-66267 - 08/23/2018, 10:47 am
    The explanation is correct: any property used in trade or business is not considered capital assets. BUT the answer that the writer chooses is the opposite.
    1
    Y
    Isn't the dividends not included in the calculation?
    Yoon-33286 - 08/23/2018, 6:28 am
    I thought the dividends of 12,000 (40,000 x 30%) should be subtracted from the net income distribution of 39,000 (130,000 x 30%) and then subtract the depreciation expense in order to get to the final number. Is there any reason why the dividend is not part of the calculation?
    1
    U
    Like kind exchanges
    user-200 - 08/23/2018, 12:38 am
    Why is the basis used in this problem instead of the FV? I thought the basis of the new property plus is the FV of the old plus any cash received...
    2
    U
    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.
    2
    U
    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).
    1
    S
    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?
    3
    Consol
    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?
    2
    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.
    3
    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.
    3
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