CIMAPRA19-F01-1 Exam - Topic 6 Question 37 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 37
Topic #: 6

In 20X4, DEF closed its business having made a trading loss of $160,000. In DEF's country of residence, trading losses may be carried back three years on a LIFO basis.

The profits for the last four years of trading were:

What are the taxable profits or losses for years 20X1 and 20X2?

A20X1 $10,000, 20X2 $113,000

B20X1 $143,000, 20X2 $ nil

C20X1 $150,000, 20X2 $133,000

D20X1 $150,000, 20X2 $nil

Show Suggested Answer

Suggested Answer: B

by Carey at May 08, 2022, 03:57 PM

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Zana

6 months ago

Not sure about those numbers, seems off to me.

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Catalina

6 months ago

Definitely not option A, that profit looks way too low.

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Zena

6 months ago

Wait, they can carry back losses? That's interesting!

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Becky

6 months ago

I think option D makes the most sense here.

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Ronnie

6 months ago

DEF had a rough year with that $160k loss.

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Eliseo

7 months ago

This looks like a tricky EIGRP routing question. I'll need to carefully analyze the network topology and routing information to determine the best solution.

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Vicky

7 months ago

Okay, I've got this. DISCARDFILE is not a valid GLOBALS parameter, so I'll go with option A.

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