In Year 3, a company changes its inventory method from Weighted Average to FIFO. This is considered a Change in Accounting Principle. How should this be reported?
In Year 2, Company X discovered it overstated Year 1 ending inventory by $10,000. The tax rate is 30%. What is the adjustment to the Year 2 beginning Retained Earnings?
In a business combination, the acquirer incurred the following costs:<br/>- Finder's fee: $50,000<br/>- Legal fees for the acquisition: $100,000<br/>- Stock registration fees: $20,000<br/>- Audit fees for SEC registration: $10,000<br/><br/>How should these costs be treated?
Parent Co. buys 80% of Sub Co. for $800,000. The Fair Value of the Non-Controlling Interest (NCI) is $200,000. The Fair Value of Sub's identifiable net assets is $900,000. Under US GAAP, what amount of Goodwill is recognized?
A company enters into a derivative to hedge the exposure to changes in the fair value of a recognized asset (Fair Value Hedge). In Year 1, the derivative gains $10,000 in value, and the hedged asset loses $8,000 in value due to the hedged risk. How is this reported?
A US parent has a subsidiary in Europe. The subsidiary's functional currency is the Euro. The reporting currency is the US Dollar. Which exchange rate should be used to translate the subsidiary's Common Stock account?
US Company sells goods to a French customer for 10,000 Euros on Dec 1. Rate = $1.10. On Dec 31, Rate = $1.15. On Jan 15, payment is received when Rate = $1.12. What is the impact on Year 1 Net Income?
A Not-for-Profit receives a pledge of $100,000 in Year 1, contingent on raising a matching $100,000 from other donors. In Year 1, they raise $40,000. In Year 2, they raise the remaining $60,000. When should the $100,000 pledge be recognized as revenue?
A CPA volunteers to audit the books of a local charity. The work would typically cost $5,000. The charity also had volunteers serve meals, valued at $2,000. What amount of contribution revenue should be recognized?
A NFP receives a cash donation of $50,000 in Year 1 restricted for a specific research project. In Year 2, the NFP spends the $50,000 on the project. How is this reported in Year 2?
Which of the following expenses would be classified as 'Supporting Services' in a NFP Statement of Functional Expenses?
Partners A and B have capital balances of $60,000 and $40,000 and share profits 60:40. Partner C is admitted for a $30,000 investment for a 20% interest in the total capital. Using the Bonus Method, what is Partner A's new capital balance?
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