The Accounting Review Vol. 19 No. 1 1944
PROFESSIONAL EXAMINATIONS A Department for Students of Accounting.
Abstract
The article presents problems presented by the Board of Examiners of the American Institute of Accountants as the first half of the November, 1943 examination in accounting practice. From the data given, students were required to prepare a consolidation of balance-sheets of the Top Holding Company and its subsidiaries. The investments in R Co. stock are carried at cost less subsequent net losses, investments in S Co. stock at cost. Bonds were acquired at $1,500 discount and are held for cancellation. Students were required to prepare statements of principal and income for the executor, covering the period from January 15 to January 31, 1943. In another problem businessman Alex Dunn, Jr., died on January 15, 1943, his records disclose certain estate. On July 1, 1925, the late Alex Dunn, Sr., created a trust fund, with his son, Alex Dunn, Jr., as life tenant, and his grandson as remainderman. The assets in the fund consist solely of the outstanding capital stock of Dunn Inc., namely, 2,000 shares of $100 each. Students were required to prepare the cash settlement between partners, taxable profit or deductible loss of partners and tax basis to purchasers of assets bought December 31, 1942.
- DOI
- 10.2308/tar-7035646
- Volume
- 19
- Issue
- 1
- Pages
- 87-91
- Language
- en
- Sources
- openalex crossref