The Accounting Review Vol. 32 No. 1 1957
PROFESSIONAL EXAMINATIONS.
Abstract
The following problems were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the examination in accounting practice on November 7, 1956. Saner, Mansville & Johnson, Certified Public Accountants, 1010 Fidelity Building, Richmond, Virginia, file theft Federal partnership return of income on the cash basis and use an August 31 fiscal year. Listed below are balances taken from the firm's general ledger (which is maintained on the accrual basis) as of September 1, 1955, and August 31, 1956. Mr. Doe, a real estate operator, owns several office buildings and wishes to diversify his holdings. He has an office building which he constructed in 1946 which has appreciated substantially in value. He has received an offer from Mr. Roe to exchange his equity in two apartment buildings for Doe's equity in the office building. In June 1955 the Hot & Cold Co. sold 50 air conditioning units for $200 each. Costs included material costs of $50 a unit and direct labor costs of $30 a unit. Overhead was computed at 100% of direct labor cost. Interest expense on a 4% bank loan was equivalent to $1.00 a unit. Federal income tax at a 30% rate was equivalent to $15 a unit.
- DOI
- 10.2308/tar-7134264
- Volume
- 32
- Issue
- 1
- Pages
- 128-152
- Language
- en
- Sources
- openalex crossref