AICPA Exam CPA-Financial Topic 2 Question 98 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 98
Topic #: 2

[All CPA-Financial Questions]

A segment of Ace Inc. was discontinued during 1992. Ace's loss from discontinued operations should not:

AInclude employee relocation costs associated with the decision to dispose.

BExclude operating losses from the date the decision to dispose of the segment was made until the end of 1992.

CInclude additional pension costs associated with the decision to dispose.

DInclude operating losses of the current period up to the date the decision to dispose of the segment was made.

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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Willetta

27 days ago

This question is making my brain hurt more than the time I tried to balance a chemical equation. But hey, at least it's not asking about quantum physics!

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Daniel

20 days ago

A) Include employee relocation costs associated with the decision to dispose.

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Craig

30 days ago

Hmm, I'm leaning towards C. Additional pension costs seem like they should be part of the loss, doesn't it? Unless we're trying to downplay the whole thing.

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Leonardo

1 months ago

I'm going with D. Gotta include those operating losses up to the date of the decision, right? Otherwise, it's like sweeping the past under the rug.

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Christiane

1 months ago

Wait, are we supposed to include employee relocation costs or not? This question is giving me a headache.

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Lisbeth

2 months ago

I think the answer is B. The operating losses from the date the decision to dispose of the segment was made until the end of 1992 should be excluded, not included.

upvoted 0 times