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CIMAPRA19-F02-1 Exam - Topic 1 Question 39 Discussion

ST has sold its main office property, which had a carrying value of $360,000,to AB, a property management entity.The property was sold for $400,000 which isequal to itsfair value and was immediately leased back under an operating lease agreement.Which of the following journals will record this transaction?
A) Option
B) Option
C) Option

CIMAPRA19-F02-1 Exam - Topic 1 Question 39 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 39
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

ST has sold its main office property, which had a carrying value of $360,000,to AB, a property management entity.

The property was sold for $400,000 which isequal to itsfair value and was immediately leased back under an operating lease agreement.

Which of the following journals will record this transaction?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Delmy at May 08, 2022, 08:17 PM

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Janessa
11 months ago
Definitely an operating lease, no doubt about it!
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Sylvia
11 months ago
Wait, leasing it back? Is that really a good move?
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Germaine
11 months ago
Fair value and carrying value match, interesting!
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Amie
11 months ago
I think they should have kept it instead of leasing back.
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Gussie
11 months ago
Sold for $400k, that's a nice profit!
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Felix
11 months ago
Hmm, I'm not sure. There could be some edge cases or tricky behavior with the `remove` function that I'm missing. I'll need to double-check the documentation.
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Dalene
12 months ago
XML sounds familiar, but I don't think it's the default for Alibaba Cloud. I'm leaning towards JSON.
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Ayesha
12 months ago
Okay, let me think this through. I'm pretty sure that dedup would be the best choice here, as it can help eliminate duplicate data and speed up the search process.
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Allene
12 months ago
Okay, I've got this. The organization would offer those credit terms when they can borrow funds at a lower rate than the annual interest cost, which is option A. That way, they can take advantage of the discount and still come out ahead financially.
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Layla
12 months ago
I remember something about dynamic modes, but I can't quite recall if they will automatically set it to trunk. Maybe "switchport mode dynamic desirable" could work?
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Xenia
12 months ago
Wait, what does NCQA even mean? I'm feeling unsure about how to approach this.
upvoted 0 times
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