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AICPA CPA-Financial Exam - Topic 1 Question 24 Discussion

Tack, Inc. reported a retained earnings balance of $150,000 at December 31,1990. In June 1991, Tack discovered that merchandise costing $40,000 had not been included in inventory in its 1990 financial statements. Tack has a 30% tax rate. What amount should Tack report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 1991?
B) $178,000
A) $190,000
C) $150,000
D) $122,000

AICPA CPA-Financial Exam - Topic 1 Question 24 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 24
Topic #: 1
[All CPA-Financial Questions]

Tack, Inc. reported a retained earnings balance of $150,000 at December 31,1990. In June 1991, Tack discovered that merchandise costing $40,000 had not been included in inventory in its 1990 financial statements. Tack has a 30% tax rate. What amount should Tack report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 1991?

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Suggested Answer: B

Choice 'b' is correct. $178,000.


by Catalina at May 03, 2022, 05:15 AM

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Lashawnda
8 months ago
Totally agree, $178,000 makes sense!
upvoted 0 times
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Lorriane
9 months ago
Wait, how does that lead to $178,000?
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Lorenza
9 months ago
After tax, that's a $28,000 adjustment.
upvoted 0 times
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Rusty
9 months ago
They need to adjust for the $40,000 inventory error.
upvoted 0 times
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Elizabeth
9 months ago
Tack's original retained earnings were $150,000.
upvoted 0 times
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Daron
9 months ago
Hmm, I'm a bit unsure about this one. I know TIBCO has some specific best practices for versioning, but I can't remember the details. I'll have to think it through carefully.
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Dean
9 months ago
I'm a little confused by this question. Restricting access to specific IP addresses seems important, but I'm not sure if that's the only thing we need to do. Maybe installing an IDS like Snort would also be a good idea to monitor for suspicious activity.
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Micheal
9 months ago
Ah, I've got it! The answer is NS (Name Server) record. That's the one that points to the authoritative name server for a domain.
upvoted 0 times
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Elina
10 months ago
I'm a bit confused about the difference between unicast and BUM traffic. I'll need to review that concept before answering.
upvoted 0 times
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