AICPA CPA-Financial Exam - Topic 2 Question 70 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 70
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 Bobbye at May 30, 2023, 07:09 PM

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Daisy

4 months ago

I thought property taxes were deducted differently?

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Edda

4 months ago

Only the $100k loss counts for net income, right?

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Hannah

4 months ago

Wait, are we sure about that? Seems high.

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Carisa

5 months ago

Definitely $140k total, no doubt about it!

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Nicolette

5 months ago

Mill's net loss is $100k, plus $40k in taxes.

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Shannan

5 months ago

I feel like the property taxes might be considered an expense for the period, but I'm not confident about how the loss from disposal impacts the overall net income.

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Elouise

5 months ago

I practiced a similar question where we had to determine what expenses to include for a specific period. I think both items should be included, but I’m torn between the total amounts.

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Brandon

5 months ago

I think we need to add both the loss and the property taxes together, but I can't recall if there's a specific rule about interim periods that affects this.

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Johnathon

5 months ago

I remember that losses from disposals are usually included in the net income calculation, but I'm not sure if the property taxes count too.

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Zita

5 months ago

Alright, time to put on my problem-solving hat. I'll start by considering each option individually and see which ones align with the DIAP function's purpose. Methodical approach is key here.

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Lorrine

5 months ago

I think capacity drives are installed on the side of the HX servers, but I'm not completely sure.

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Alysa

5 months ago

I'm pretty sure we need to enable DynamoDB Streams for replication, but I can't remember if we need a GSI or just a global table region.

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Rima

5 months ago

This question seems pretty straightforward. I think the answer is D - packet sniffers capture the packages as they cross the network.

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Shaniqua

5 months ago

I'm pretty confident that the answer is Azure Front Door. It seems to be the only service mentioned that can meet both the high availability and SSL/TLS encryption requirements for the AKS clusters. I'll go with that option.

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