Sample Test 2

In this example ONLY for calculating Property in Capital Accounts/Tax Basis there are (4) partners with a 25% share.

each element in your Question 1 pro forma profit and loss statement. Are there any items that

The following table illustrates the effect on reported net income of $24,611 in 1994 would be affected by an allowance for loan losses:

25-7 If a loss cannot be accrued in the period when ti is probable that an asset had been impaired or a liability had been incurred because the amount of loss cannot be reasonable estimated, the loss shall be charged to the income of the period in which the loss can be reasonably estimated and shall not be charged retroactively to an earlier period. All estimated losses for loss contingencies shall be charged to income rather than charging some to income and others to retained earnings as prior period adjustments.”

When a corporation distributes appreciated property, it must recognize gain as if it sold the property for its FMV immediately before the distribution. For gain recognition purposes, a property’s FMV is deemed to be at least equal to any liability to which the property is subject or that the shareholder assumes in connection with the distribution. A corporation recognizes no loss when it distributes to its shareholders property that has depreciated in value. A corporation’s E&P is increased by any E&P gain resulting from a distribution of appreciated property. A corporation’s E&P is reduced by (a) the amount distributed plus (b) the greater of the FMV or E&P adjusted basis of any non money property distributed, minus © any liabilities to which the property is subject or that the shareholder assumes in connection with the distribution. E&P also is reduced by taxes paid or incurred on the corporation’s recognized gain, if any.

I conducted a survey, asking 20 females and 20 males their favorite food group for my AP Statistics project. I surveyed on Wednesday, September 27 and on Thursday, September 28 at Marshall High School. They chose from protein, grain, vegetables, fruit, and dairy. From the data, I found that 10 males and 2 females liked protein best, 3 males and 2 females liked grains best, 1 male and 1 female liked vegetables best, 3 males and 13 females liked fruit best, and 3 males and 2 females liked dairy best. Half of the males liked protein best, while most females liked fruits best. The least amount of both males and females liked vegetables. From this data, we can see that males like protein more than females do, and females like fruit more than males

As discussed above, if indicators of impairment exist for an asset (group) to be held and used, an entity determines whether the sum of the estimated undiscounted future cash flows attributable to the asset (group) in question is less than its carrying amount. If those undiscounted cash flows are less than

Section 360-10-35-17 of the Code states that an impairment loss shall be recognized if the carrying value of a fixed asset is not recoverable and exceeds its fair value. The carrying value of the fixed asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and disposal of the asset. An impairment loss shall be measured by the amount by which the carrying value exceeds the fair value.

There are two general partners, each of whom contributes $5,000 in capital to a limited partnership. There are two

both a and b (Yes.  The corporate structure provides for limited liability and ease of transferring ownership.)

An impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is

(b) Recorded an adjusting entry to record use of $20 of the above supplies. Cash 0/ Net Income -20

(3) What amount of loss is allocable to the limited partner, Dr. Ashin, in this taxable year?

. (TCO 2) Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year. The partnership did not make any distributions, and the corporation did not pay any dividends. How much income must Barry report from these businesses? (Points : 2)

b.) This number represents the total of the plant, property, and equipment that Palfinger has. This number should be recorded as the historical cost that the plant, property and equipment was purchased at. This total number also has the total sum of amortized depreciation subtracted out to get the net amount of PP&E that is put on the balance sheet