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?
    4
    S
    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.
    1
    F
    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.
    3
    J
    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?
    1
    L
    Question 7
    LAWRENCE-93906 - 08/14/2018, 5:21 pm
    Shouldn't we take the add'l preferred stock into account, for Q2-4; no of preferred stock outstanding is 58000 shares, if $20000 were paid on 50,000 preferred in Q1, then $23200 should be paid on 58000 preferred for Q2-4. Would like to hear your comments
    3
    C
    Question: FV dropped in Year One. Why wasn't a loss taken in Y1 NOT Y2?
    Charles-65617 - 08/13/2018, 8:45 pm
    Agreed the fair value of investment was 209000 at end of year 1. But the Investment should be 211000 after adding Net income, subtracting dividends. There is obviously a 2000 loss attributable to stock price (Fair value) Losses are taken Immediatly, why isn't the loss taken in Year 1? My answer, "0" change in Y2 cause i say the loss should be taken y1. Explain
    2
    U
    convention
    user-1476 - 08/13/2018, 9:32 am
    half quarter convention is applied, isn it ?
    3
    C
    Restructuring losses
    Charles-65617 - 08/13/2018, 3:24 am
    The restructuring loss of $300,000 You normally think, "Take the expenses as soon as possible", so in year 1. That's wrong though. The loss does not become Realized until Employees are communicated about it. "Restructuring termination costs" Would be a major spoiler on the balance sheet. Telling the Employees is the "Point of No Return" That's when the Expense is REAL. They know about it!
    1
    S
    Is this the correct year
    Sinead-99789 - 08/12/2018, 4:18 pm
    Should this question ask what the lessee should report at the end of Year Two as a liability - not year one as in the question - the answer appears to be for Year Two ....
    2
    K
    Shouldn't tax amount be 19,200 ?
    Khalid706 - 08/12/2018, 4:41 am
    What i did is simple, 60,000 x 32 / 100 = 19,200. can someone explain how does the answer become 20,000? Thanks
    3
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