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    Mae
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    The document discusses several accounting problems related to pensions, deferred taxes, leases, and earnings per share calculations. It addresses recognizing a deferred tax asset in 2020 and 2021, the income statement approach for a pension problem, accounting for a seller leasing goods back from the buyer after the initial sale, and the treatment of contingently issuable shares, stock splits, stock dividends, and diluted earnings per share calculations. The problems cover a range of technical accounting issues and calculations.

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    FAR Notes

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    The document discusses several accounting problems related to pensions, deferred taxes, leases, and earnings per share calculations. It addresses recognizing a deferred tax asset in 2020 and 2021, the income statement approach for a pension problem, accounting for a seller leasing goods back from the buyer after the initial sale, and the treatment of contingently issuable shares, stock splits, stock dividends, and diluted earnings per share calculations. The problems cover a range of technical accounting issues and calculations.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    10 views7 pages

    FAR Notes

    Uploaded by

    Mae
    The document discusses several accounting problems related to pensions, deferred taxes, leases, and earnings per share calculations. It addresses recognizing a deferred tax asset in 2020 and 2021, the income statement approach for a pension problem, accounting for a seller leasing goods back from the buyer after the initial sale, and the treatment of contingently issuable shares, stock splits, stock dividends, and diluted earnings per share calculations. The problems cover a range of technical accounting issues and calculations.

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    © All Rights Reserved
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    of 7

    PENSION

    Problem 1

    DEFERRED TAX
    INCOME STATEMENT APPROACH

    2020

    2021
    2022

    Problem 5

    Problem 6

    LEASES
    LESSOR
    JE
    1. Record sale of goods
    Cash (SP)
    Sales
    COS
    Inventory

    Sales – COS = GP

    Cash (SP)
    Problem 9 Loss
    Asset (CV)
    Gain

    Seller sold goods to buyers


    After sale – another contract – Buyer leases to
    Seller

    Seller – Lessor – Lessee

    Cash (SP)
    Right of use
    Loss
    Asset (CV)
    Lease Liability
    Gain

    Lease Liability = DV MLR


    Right of Use = LL* (CV Asset/ FV Asset)
    Gain/Loss = (CV Asset/FV Asset)*(FV Asset – LL)
    Problem 10
    Numerator

    Denominator

    Diluted EPS
    - PS to CS in the future
    - Dilutive – decreases BEPS
    P2 Stock Splits and Stock Dividends - Anti dilutive – increases EPS

    P8

    P3 Subscribed OS

    P9

    P11

    P4 Contingent issued shares


    P9

    FS Prep

    P10

    P7

    P11

    P8

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