AICPA Exam CPA-Financial Topic 2 Question 98 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 98
Topic #: 2

On June 30, 1991, Mill Corp. incurred a $100,000 net loss from disposal of a component of a business. Also, on June 30, 1991, Mill paid $40,000 for property taxes assessed for the calendar year 1991. What amount of the foregoing items should be included in the determination of Mill's net income or loss for the six-month interim period ended June 30, 1991?

A$140,000

B$120,000

C$90,000

D$70,000

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. $120,000 expense included in the determination of net income or loss for the sixmonth interim period ended June 30, 1991.

by Louis at Sep 16, 2024, 04:42 PM

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Vernice

2 months ago

So the total amount to be included in the determination of Mill's net income or loss would be $140,000. Therefore, the answer is A) $140,000.

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Edelmira

3 months ago

I'm going to channel my inner accountant and say B) $120,000. Gotta love those pesky interim financial reporting questions!

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Audra

2 months ago

I agree with B) $120,000.

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Evangelina

2 months ago

I'm going with C) $90,000.

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Brynn

2 months ago

I think it's A) $140,000.

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Jarvis

3 months ago

I'm feeling a bit dizzy trying to figure this out. Is there a 'none of the above' option? Just kidding, I'll go with D) $70,000. I think the net loss should be included, but maybe not the full property tax amount.

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Nicolette

3 months ago

I agree with Lilli, we should also include the $40,000 for property taxes assessed for the calendar year 1991.

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Sharita

3 months ago

Hmm, this is a tricky one. I'm going to go with C) $90,000. It seems like the net loss from the disposal should be included, but the property taxes might not be fully attributable to the six-month period.

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Louisa

3 months ago

I think the correct answer is B) $120,000. The net loss from the disposal of the component should be included in the determination of net income or loss for the six-month interim period, and the property taxes paid should also be included.

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