AICPA CPA-Regulation Exam - Topic 3 Question 41 Discussion

Actual exam question for AICPA's CPA-Regulation exam

Question #: 41
Topic #: 3

On December 31, 1989, a building owned by Pine Corp. was totally destroyed by fire. The building had fire insurance coverage up to $500,000. Other pertinent information as of December 31, 1989 follows:

During January 1990, before the 1989 financial statements were issued, Pine received insurance proceeds of $500,000. On what amount should Pine base the determination of its loss on involuntary conversion?

A$520,000

B$530,000

C$550,000

D$560,000

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. $530,000 basis of involuntary converted building.

by Belen at May 07, 2022, 11:46 PM

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Rene

5 months ago

Totally agree, it's all about that $500k!

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Brandon

6 months ago

Wait, why would the loss be more than the insurance?

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Jillian

6 months ago

I think it might be more complicated than just the payout.

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Felicidad

6 months ago

Definitely should be based on the insurance coverage amount.

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Ira

6 months ago

The insurance payout was $500,000.

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Laurena

6 months ago

Okay, let me see. I'm guessing the background process will wait for the foreground process to finish, so I'll go with option B.

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Barabara

6 months ago

Okay, I think I've got this. Since the aggregator transformation receives sorted input, the default partition type is likely hash auto-keys. That would make the most sense to me based on the information provided.

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Ashley

6 months ago

I've got a good feeling about this. The answer is probably A and C, since they both use the --user root and -print options to list the files and directories.

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