All Related Questions of Intangible Assets

Q: Presented below are a number of operational guidelines and practices that have

Presented below are a number of operational guidelines and practices that have developed over time. Instructions Select the assumption, principle, or constraint that most appropriately justifie...

Q: Presented below are a number of business transactions that occurred during the

Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc.InstructionsIn each of the situations, discuss the appropriateness of the journal entries...

Q: Patrick Corporation’s adjusted trial balance contained the following asset accounts at December

Patrick Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Prepaid Rent $12,000; Goodwill $50,000; Franchise Fees Receivable $2,000; Franchises $...

Q: Presented below is the balance sheet of Sargent Corporation for the current

Presented below is the balance sheet of Sargent Corporation for the current year, 2014. The following information is presented. 1. The current assets section includes cash $150,000, accounts r...

Q: Crane Corporation has the following accounts included in its December 31,

Crane Corporation has the following accounts included in its December 31, 2014, trial balance: Equity Investments (trading) $21,000; Goodwill $150,000; Prepaid Insurance $12,000; Patents $220,000; F...

Q: Wade Corp. has 150,000 shares of common stock outstanding

Wade Corp. has 150,000 shares of common stock outstanding. In 2014, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in t...

Q: Explain the difference between artistic-related intangible assets and contract-

Explain the difference between artistic-related intangible assets and contract-related intangible assets.  

Q: Explain how losses on impaired intangible assets should be reported in income

Explain how losses on impaired intangible assets should be reported in income.

Q: An intangible asset with an estimated useful life of 30 years was

An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2004, for $540,000. On January 1, 2014, a review was made of intangible assets and their expected service liv...

Q: Presented below is a list of items that could be included in

Presented below is a list of items that could be included in the intangible assets section of the balance sheet. 1. Investment in a subsidiary company. 2. Timberland. 3. Cost of engineering activ...

Q: Joni Hyde Inc. has the following amounts reported in its general

Joni Hyde Inc. has the following amounts reported in its general ledger at the end of the current year. Instructions (a) On the basis of the information above, compute the total amount to be r...

Q: Rolanda Marshall Company, organized in 2013, has set up a

Rolanda Marshall Company, organized in 2013, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2014. Instru...

Q: Compare the reporting of intangible assets under GASB and FASB standards.

Compare the reporting of intangible assets under GASB and FASB standards.

Q: Transactions from Lucky Bamboo, Inc.'s current year follow.

Transactions from Lucky Bamboo, Inc.'s current year follow. 1. Lucky Bamboo, Inc. thinks it should dispose of its excess land. VVhile the book value is $50,000, current market prices are depressed and...

Q: The statement of financial position of Sargent Corporation follows for the current

The statement of financial position of Sargent Corporation follows for the current year, 2014: The following additional information is available: 1. The current assets section includes the following:...

Q: Several statement of financial position accounts of Greenspoon Inc. follow:

Several statement of financial position accounts of Greenspoon Inc. follow: 1. FV-OCI Investments 2. Common Shares 3. Dividends Payable 4. Accumulated Depreciation- Equipment 5. Construction in Pr...

Q: The classifications on Chesapeake Limited's statement of financial position are as follows

The classifications on Chesapeake Limited's statement of financial position are as follows: l. Current assets 2. Long-term investments 3. Property, plant, and equipment 4. Intangible assets 5. Oth...

Q: Plato Inc. prepares financial statements in accordance with IFRS and uses

Plato Inc. prepares financial statements in accordance with IFRS and uses the following headings on its statement of financial position: l. Current assets 2. Long-term investments 3. Property, plant...

Q: Bruno Corp. has decided to expand its operations. The bookkeeper

Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion: Instructions (a) Pr...

Q: Faldo Corp. is a public company and has 100,000

Faldo Corp. is a public company and has 100,000 common shares outstanding. In 2014, the company reported income from continuing operations before income tax of $2,710,000. Additional transactions not...

Q: Pine Corporation's adjusted trial balance contained the following asset accounts at December

Pine Corporation's adjusted trial balance contained the following asset accounts at December 31, 2014: Prepaid Rent………………………$12,000 Goodwill……………………………$50,000 Franchise Fees Receivable……$2,000 Intangi...

Q: The following is a list of items that could be included in

The following is a list of items that could be included in the intangible assets section of the statement of financial position: 1. An investment in a subsidiary company 2. Timberland 3. The cost of a...

Q: Berrie Inc. has the following amounts included in its general ledger

Berrie Inc. has the following amounts included in its general ledger at December 31, 2014: Organization costs ………………………………………………………………….…………….. $34,000 Purchased trademark ………………………………………………………….……..…...

Q: As the recently appointed auditor for Daleara Corporation, you have been

As the recently appointed auditor for Daleara Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2014, are prepared. The controller for...

Q: Instructions Go to the SEDAR website (www.sedar.

Instructions Go to the SEDAR website (www.sedar.com) and choose two companies from each of four different industry classifications. Choose from a variety of industries such as real estate and construc...

Q: Institute Limited organized late in 2013 and set up a single account

Institute Limited organized late in 2013 and set up a single account for all intangible assets. The following summary shows the entries in 2014 (all debits) that have been recorded in intangible Asset...

Q: In 2013, Aquaculture Incorporated applied for several commercial fishing licences for

In 2013, Aquaculture Incorporated applied for several commercial fishing licences for its commercial fishing vessels. The application was successful and on January 2, 2014, Aquaculture was granted 22...

Q: Meridan Golf and Sports was formed on July 1, 2014,

Meridan Golf and Sports was formed on July 1, 2014, when Steve Powerdriver purchased Old Master Golf Corporation. Old Master provides video golf instruction at kiosks in shopping malls. Powerdriver's...

Q: Information for Canberra Corporation's intangible assets follows: 1.

Information for Canberra Corporation's intangible assets follows: 1. On January 1, 2014, Canberra signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise f...

Q: Monsecours Corp., a public company incorporated on June 28, 2013

Monsecours Corp., a public company incorporated on June 28, 2013, setup a single account for all of its intangible assets. The following summary discloses the debit entries that were recorded during 2...

Q: Kolber Manufacturing Limited designs, manufactures, and distributes safety boots.

Kolber Manufacturing Limited designs, manufactures, and distributes safety boots. In January 2014, Kolber purchased another business that manufactures and distributes safety shoes, to complement its e...

Q: L'Oreal is the world's largest cosmetic company, with brands such as

L'Oreal is the world's largest cosmetic company, with brands such as its own name, Redken, Mayhelline, Lancome, and Ralph Lauren, just to name a few. Instructions Access L'Oreal’s annual financial...

Q: Instructions Read the article "Recognizing Assets" by John Browne

Instructions Read the article "Recognizing Assets" by John Browne, CA Magazine, December 2008. Answer the following questions. (a) What are regulatory assets? Which types of companies have these asset...

Q: Access the annual report for British Airways pic for the year ended

Access the annual report for British Airways pic for the year ended December 31, 2011, from the company's website. Use the notes to the financial statements to answer the following questions. Instruc...

Q: Safe Ride Incorporated applied for several taxi licenses for its taxicab operations

Safe Ride Incorporated applied for several taxi licenses for its taxicab operations in the City of Waterford and, on August 31, 2014, incurred costs of$14,200 in the application process. The outcome o...

Q: Wholesome Foods Corporation is a producer of gourmet organic cookies. The

Wholesome Foods Corporation is a producer of gourmet organic cookies. The company was established three years ago when its founder and president, Martha Spencer, purchased the trademark "Healthy Origi...

Q: GlaxoSmithKline Plc. (GSK) is a global pharmaceutical and consumer

GlaxoSmithKline Plc. (GSK) is a global pharmaceutical and consumer health-related products company located in the United Kingdom. The company prepares its financial statements in accordance with Inter...

Q: Ralph Lauren Corporation is a global leader in the design, marketing

Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of premium lifestyle products, including men’s, women’s and childrenâ&#...

Q: Pro-tech Software acquired all of the outstanding stock of Reliable

Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The book value of Reliable’s net assets (assets minus liabilities) was $8.3 million. The fair values of Re...

Q: Listed below are several terms and phrases associated with property, plant

Listed below are several terms and phrases associated with property, plant, and equipment and intangible assets. Pair each item from List A with the item from List B (by letter) that is most appropria...

Q: Johnson Corporation acquired all of the outstanding common stock of Smith Corporation

Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith’s net assets (assets minus liabilities) was $7,...

Q: A company may acquire property, plant, and equipment and intangible

A company may acquire property, plant, and equipment and intangible assets for cash, in exchange for a deferred payment contract, by exchanging other assets, or by a combination of these methods. Req...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This mate...

Q: Compare and contrast amortization of intangible assets with depreciation and depletion.

Compare and contrast amortization of intangible assets with depreciation and depletion.

Q: On June 28 Lexicon Corporation acquired 100% of the common stock

On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology; $2...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Explain the steps required to correct an error in accounting for property

Explain the steps required to correct an error in accounting for property, plant, and equipment and intangible assets that is discovered in a year subsequent to the year the error was made.

Q: What is included in the original cost of property, plant,

What is included in the original cost of property, plant, and equipment and intangible assets acquired in an exchange transaction?

Q: On May 28, 2018, Pesky Corporation acquired all of the

On May 28, 2018, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc. for $420 million. The fair value of Harman’s identifiable tangible and intangible assets totaled $512 mi...

Q: Listed below are several items and phrases associated with depreciation, depletion

Listed below are several items and phrases associated with depreciation, depletion, and amortization. Pair each item from List A with the item from List B (by letter) that is most appropriately associ...

Q: The following information concerns the intangible assets of Epstein Corporation:

The following information concerns the intangible assets of Epstein Corporation: a. On June 30, 2018, Epstein completed the acquisition of the Johnstone Corporation for $2,000,000 in cash. The fair va...

Q: The company controller, Barry Melrose, has asked for your help

The company controller, Barry Melrose, has asked for your help in interpreting the authoritative accounting literature that addresses the recognition and measurement of impairment losses for property,...

Q: Vodafone Group, Plc., a U.K. company,

Vodafone Group, Plc., a U.K. company, is the largest mobile telecommunications network company in the world. The company prepares its financial statements in accordance with International Financial Re...

Q: Presented below is the balance sheet for HHD, Inc., at

Presented below is the balance sheet for HHD, Inc., at December 31, 2018. The captions shown in the summarized statement above include the following: a. Current assets: cash, $150,000; accounts receiv...

Q: Delta Air Lines revealed in its 10-K filing that its

Delta Air Lines revealed in its 10-K filing that its valuation allowance for deferred tax assets at the end of 2013 was $177 million, dramatically lower than the over $10 billion recorded at the end o...

Q: Data related to the acquisition of timber rights and intangible assets during

Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. On December 31, the company determined that $3,400,000 of goodwill w...

Q: Data related to the acquisition of timber rights and intangible assets during

Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. Timber rights on a tract of land were purchased for $1,600,000 on Fe...

Q: Data related to the acquisition of timber rights and intangible assets during

Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. On December 31, the company determined that $3,400,000 of goodwill w...

Q: Data related to the acquisition of timber rights and intangible assets during

Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. Timber rights on a tract of land were purchased for $1,600,000 on Fe...

Q: Ripley Corporation’s accumulated depreciation—furniture account increased by $11,

Ripley Corporation’s accumulated depreciation—furniture account increased by $11,575, while $2,500 of patent amortization was recognized between balance sheet dates. There were no purchases or sales o...

Q: Ya Wen Corporation’s accumulated depreciation—equipment account increased by $8

Ya Wen Corporation’s accumulated depreciation—equipment account increased by $8,750, while $3,250 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of...

Q: Balance sheet data for Alvarez Company on December 31, the end

Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets...

Q: The bond indenture for the 10-year, 9% debenture

The bond indenture for the 10-year, 9% debenture bonds issued January 2, 20Y5, required working capital of $100,000, a current ratio of 1.5, and a quick ratio of 1.0 at the end of each calendar year u...

Q: The following questions are unrelated except that they all apply to plant

The following questions are unrelated except that they all apply to plant assets and intangible assets: 1. The manager of Carpet World regularly debits the cost of repairs and maintenance of plant ass...

Q: Macy’s, Inc., is one the nation’s premier retailers, with

Macy’s, Inc., is one the nation’s premier retailers, with fiscal 2010 sales of $25 billion. The company operates about 810 Macy’s department store...

Q: Identify the two exceptions to valuing property, plant, and equipment

Identify the two exceptions to valuing property, plant, and equipment and intangible assets acquired in nonmonetary exchanges at the fair value of the asset(s) given up.

Q: Explain how property, plant, and equipment and intangible assets acquired

Explain how property, plant, and equipment and intangible assets acquired through donation are valued.

Q: What is the basic principle for valuing property, plant, and

What is the basic principle for valuing property, plant, and equipment and intangible assets acquired in exchange for other nonmonetary assets?

Q: Use the Allstott, Inc., balance sheet data on the following

Use the Allstott, Inc., balance sheet data on the following page. 1. Compute Allstott, Inc.’s quick (acid-test) ratio at December 31, 2012 and 2011. 2. Use the comparative informatio...

Q: Use the financial statements of Allstott, Inc., in Short Exercises

Use the financial statements of Allstott, Inc., in Short Exercises 13-6 and 13-7. 1. Compute the company’s debt ratio at December 31, 2012. 2. Compute the company’s...

Q: Use the financial statements of Allstott, Inc., in Short Exercises

Use the financial statements of Allstott, Inc., in Short Exercises 13-6 and 13-7 to compute these profitability measures for 2012. Show each computation. a. Rate of return on sales b. Asset turnover c...

Q: Prycal Co. merges with InterBuy, Inc., and acquires several

Prycal Co. merges with InterBuy, Inc., and acquires several different categories of intangible assets including trademarks, a customer list, copyrights on artistic materials, agreements to receive roy...

Q: The balance sheet of Rackett & Ball plc., a U.

The balance sheet of Rackett & Ball plc., a U.K.-based sporting goods manufacturer, is presented here. Figures are stated in millions of pounds (£m). During the year, the producers&ac...

Q: Exhibit 8-3 identifies current IASB standards and their respective titles

Exhibit 8-3 identifies current IASB standards and their respective titles. Required: Using information on the IASB Web site (www.iasb.org) or other available information, prepare an updated list of...

Q: One of the accounting development patterns that was introduced in Chapter 2

One of the accounting development patterns that was introduced in Chapter 2 was the macroeconomic development model. Under this framework accounting practices are designed to enhance national macroeco...

Q: Marissa Skye and Alexa Reichele, tire analysts for a global investment

Marissa Skye and Alexa Reichele, tire analysts for a global investment fund located in Manhattan, are examining the 20X0 earnings performance of two potential investment candidates. Reflecting the com...

Q: The Volkswagen Group adopted International Accounting Standards (IAS, now International

The Volkswagen Group adopted International Accounting Standards (IAS, now International Financial Reporting, or IFRS) for its 2001 fiscal year. The following is taken from Volkswagen’...

Q: Campbell Soup Company is the world’s leading maker and marketer of soup

Campbell Soup Company is the world’s leading maker and marketer of soup and sells other well-known brands of food in 120 countries. Presented here are the items listed on its recent...

Q: Following are terms related to the balance sheet that were discussed in

Following are terms related to the balance sheet that were discussed in Chapters 2 through 5. Match each definition with its related term by entering the appropriate letter in the space provided.

Q: During the 2012 annual accounting period, Nguyen Corporation completed the following

During the 2012 annual accounting period, Nguyen Corporation completed the following transactions: a. On January 1, 2012, purchased a license for $7,200 cash (estimated useful life, four years). b....

Q: Carey Corporation has five different intangible assets to be accounted for and

Carey Corporation has five different intangible assets to be accounted for and reported on the financial statements. The management is concerned about the amortization of the cost of each of these int...

Q: Complete the requirements for each of the following independent cases:

Complete the requirements for each of the following independent cases: Case A. Dr Pepper Snapple Group, Inc., is a leading integrated brand owner, bottler, and distributor of nonalcoholic beverages i...

Q: Trotman Company had three intangible assets at the end of 2012 (

Trotman Company had three intangible assets at the end of 2012 (end of the accounting year): a. Computer software and Web development technology purchased on January 1, 2011, for $70,000. The technol...

Q: Cheshire Company had three intangible assets at the end of 2011 (

Cheshire Company had three intangible assets at the end of 2011 (end of the accounting year): a. A copyright purchased on January 1, 2011, for a cash cost of $12,300. The copyright is expected to hav...

Q: Starbucks Corporation is the leading roaster and retailer of specialty coffee,

Starbucks Corporation is the leading roaster and retailer of specialty coffee, with nearly 17,000 company-operated and licensed stores worldwide. Assume that Starbucks planned to open a new store on C...

Q: What assets should be amortized using the straight-line method?

What assets should be amortized using the straight-line method? a. Intangible assets with definite lives b. Intangible assets with indefinite lives c. Natural resources d. All of the above

Q: During the 2011 annual accounting period, BSP Company completed the following

During the 2011 annual accounting period, BSP Company completed the following transactions: a. On January 1, 2011, purchased a patent for $28,000 cash (estimated useful life, seven years). b. On Jan...

Q: Starn Tool Company has five different intangible assets to be accounted for

Starn Tool Company has five different intangible assets to be accounted for and reported on the financial statements. The management is concerned about the amortization of the cost of each of these in...

Q: The financial statements of Nike, Inc., reveal the information regarding

The financial statements of Nike, Inc., reveal the information regarding income taxes shown in Exhibit 2.17. REQUIRED a. Assuming that Nike had no significant permanent differences between book incom...

Q: Disclosures related to income taxes for The Coca-Cola Company (

Disclosures related to income taxes for The Coca-Cola Company (Coca-Cola) for 2006–2008 appear in Exhibit 9.13. REQUIRED a. Why are Coca-Cola’s average tax rates...

Q: Components of the deferred tax asset of Biosante Pharmaceuticals, Inc.,

Components of the deferred tax asset of Biosante Pharmaceuticals, Inc., are shown in Exhibit 2.14. The company had no deferred tax liabilities. REQUIRED a. At the end of 2008, the largest deferred ta...

Q: VF Corporation is an apparel company that owns recognizable brands like Timberland

VF Corporation is an apparel company that owns recognizable brands like Timberland, Vans, Reef, and 7 For All Mankind. Exhibit 5.19 and 5.20 present balance sheets and income statements, respectively,...

Q: The Coca-Cola Company is a global soft drink beverage company

The Coca-Cola Company is a global soft drink beverage company (ticker symbol ¼ KO) that is a primary and direct competitor with PepsiCo. The data in Exhibits 12.14–12.1...

Q: Dick’s Sporting Goods is a chain of full-line sporting goods

Dick’s Sporting Goods is a chain of full-line sporting goods retail stores offering a broad assortment of brand name sporting goods equipment, apparel, and footwear. Dickâ€...

Q: Aer Lingus is an international airline based in Ireland. Exhibit 3

Aer Lingus is an international airline based in Ireland. Exhibit 3.26 provides the statement of cash flows for Year 1 and Year 2, which includes a footnote from the financial statements. Year 2 was ch...

Q: The Coca-Cola Company is a global soft drink beverage company

The Coca-Cola Company is a global soft drink beverage company (ticker: KO) that is a primary and direct competitor with PepsiCo. The data in Chapter 12’s Exhibits 12.14, 12.15, and 1...

Q: Diageo is a major international company located in London, best known

Diageo is a major international company located in London, best known for its Smirnoff, JohnnieWalker, and Bailey’s brands of spirits. Its financial statements are accounted for under IFRS. A recentan...

Q: Balance sheet information for Milton Company is as follows:

Balance sheet information for Milton Company is as follows: Required: Compute the missing values (a)–(j). All the necessary information is provided. (Hint: It is not necessary to...

Q: The Coca-Cola Company is a global soft-drink beverage

The Coca-Cola Company is a global soft-drink beverage company that is a primary and direct competitor with PepsiCo. The data in Chapter 12 Exhibits 12.14–12.16 include the actual amo...

Q: In this chapter, we evaluated shares of common equity in PepsiCo

In this chapter, we evaluated shares of common equity in PepsiCo using the value-to-book approach, market multiples, price differentials, and reverse engineering. The Coca-Cola Company competes direct...

Q: Read the following passage: “Companies usually buy (a

Read the following passage: “Companies usually buy (a) assets. These include both tangible assets such as (b) and intangible assets such as (c). To pay for these assets, they sell (d) assets suc...

Q: Goodwill represents the excess of the sum of the fair value of

Goodwill represents the excess of the sum of the fair value of the (1) consideration given, (2) shares already owned, and (3) the noncontrolling interest over the a. Sum of the fair values assigned t...

Q: This case addresses the long-term assets of Columbia Sportswear.

This case addresses the long-term assets of Columbia Sportswear. The majority of these assets consist of property and equipment and intangible assets. In the text, you learned how most long-term tangi...

Q: The balance sheet of Sco appeared as follows on March 1,

The balance sheet of Sco appeared as follows on March 1, 2016, when an interim trustee was appointed by the U.S. trustee to assume control of Sco’s estate in a Chapter 7 case. ADDI...

Q: The unsecured creditors of Dan filed a petition under Chapter 7 of

The unsecured creditors of Dan filed a petition under Chapter 7 of the bankruptcy act on July 1, 2016, to force Dan into bankruptcy. The court order for relief was granted on July 10, at which time an...

Q: On January 1 of the current year, Palm Corporation purchases the

On January 1 of the current year, Palm Corporation purchases the net assets of Vicki’s unincorporated business for $600,000. The tangible net assets have a $300,000 book value and a $400,000 FMV. The...

Q: Explain why the growing importance of intangible assets complements growing interest in

Explain why the growing importance of intangible assets complements growing interest in the Balanced Scorecard.

Q: Boston Celtics Limited Partnership II and Subsidiaries presented the following consolidated

Boston Celtics Limited Partnership II and Subsidiaries presented the following consolidated statements of income for 1998, 1997, and 1996. Required a. Comment on Amortization of NBA Franchise and Oth...

Q: Recent balance sheets are provided for Twitter, Inc., a global

Recent balance sheets are provided for Twitter, Inc., a global platform for real-time public self-expression and conversation. Required: 1. Is Twitter a corporation, sole proprietorship, or partnersh...

Q: Pool Corporation, Inc., is the world’s largest wholesale distributor of

Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange u...

Q: Campbell Soup Company is the world’s leading maker and marketer of soup

Campbell Soup Company is the world’s leading maker and marketer of soup and sells other well-known brands of food in 120 countries. Presented here are the items listed on its recent...

Q: Most people know Hewlett Packard Company (HP) as a leading

Most people know Hewlett Packard Company (HP) as a leading supplier of personal computers, printers and scanners, and storage and networking products for large and small customers alike. However, HP a...

Q: Following are terms related to the balance sheet that were discussed in

Following are terms related to the balance sheet that were discussed in Chapters 2 through 5. Match each definition with its related term by entering the appropriate letter in the space provided.

Q: Papa John’s International Inc. operates and franchises pizza delivery and carryout

Papa John’s International Inc. operates and franchises pizza delivery and carryout restaurants worldwide. The following is an alphabetical list of accounts and amounts reported in a...

Q: How are the costs of intangible assets recovered?

How are the costs of intangible assets recovered?

Q: In its 20X7 consolidated income statement, Bower Development Company reported

In its 20X7 consolidated income statement, Bower Development Company reported consolidated net income of $961,000 and $39,000 of income assigned to the 30 percent noncontrolling interest in its only...

Q: Diageo is a major international company located in London, best known

Diageo is a major international company located in London, best known for its Smirnoff, Johnnie Walker, and Guinness brands of spirits. Its financial statements are accounted for under IFRS. A recent...

Q: Warwick Company hires an accounting intern who says that intangible assets should

Warwick Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain.

Q: The financial statements of Apple Inc. are presented in Appendix A

The financial statements of Apple Inc. are presented in Appendix A. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also...

Q: The financial statements of Louis Vuitton are presented in Appendix F.

The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are a...

Q: The intangible assets section of Amato Corporation’s balance sheet at December 31

The intangible assets section of Amato Corporation’s balance sheet at December 31, 2017, is presented here. Patents ($60,000 cost less $6,000 amortization) $54,000 Copyrights ($36,000 cost less $25...

Q: Blythe Corporation and Jacke Corporation, two companies of roughly the same

Blythe Corporation and Jacke Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the stra...

Q: The following situations are independent of one another. 1.

The following situations are independent of one another. 1. An accounting student recently employed by a small company doesn’t understand why the company is only depreciating its buildings and equipme...

Q: Suppose Nike, Inc. reported the following plant assets and intangible

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2017 (in millions): other plant assets $965.8, land $221.6, patents and trademarks (at cost) $51...

Q: Due to rapid employee turnover in the accounting department, the following

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Inland Corporation. 1. Inland developed a new manufactur...

Q: During the current year ending on December 31, BSP Company completed

During the current year ending on December 31, BSP Company completed the following transactions: a. On January 1, purchased a patent for $28,000 cash (estimated useful life, seven years). b. On Januar...

Q: Starn Tool Company has five different intangible assets to be accounted for

Starn Tool Company has five different intangible assets to be accounted for and reported on the financial statements. The management is concerned about the amortization of the cost of each of these in...

Q: What assets should be amortized using the straight-line method?

What assets should be amortized using the straight-line method? a. Intangible assets with definite lives c. Natural resources b. Intangible assets with indefinite lives d. All of the above

Q: During the current year ending December 31, Nguyen Corporation completed the

During the current year ending December 31, Nguyen Corporation completed the following transactions: a. On January 1, purchased a license for $7,200 cash (estimated useful life, four years). b. On Jan...

Q: Carey Corporation has five different intangible assets to be accounted for and

Carey Corporation has five different intangible assets to be accounted for and reported on the financial statements. The management is concerned about the amortization of the cost of each of these int...

Q: Trotman Company had three intangible assets at the end of 2016 (

Trotman Company had three intangible assets at the end of 2016 (end of the accounting year): a. Computer software and Web development technology purchased on January 1, 2015, for $70,000. The technolo...

Q: Springer Company had three intangible assets at the end of 2017 (

Springer Company had three intangible assets at the end of 2017 (end of the accounting year): a. A copyright purchased on January 1, 2017, for a cash cost of $14,500. The copyright is expected to have...

Q: Starbucks Corporation is the leading roaster and retailer of specialty coffee,

Starbucks Corporation is the leading roaster and retailer of specialty coffee, with over 21,000 company operated and licensed stores worldwide. Assume that Starbucks planned to open a new store on Com...

Q: Wade Corp. has 150,000 shares of common stock outstanding

Wade Corp. has 150,000 shares of common stock outstanding. In 2012, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the...

Q: Access the Codification glossary (“Master Glossary”) to answer the following

Access the Codification glossary (“Master Glossary”) to answer the following. (a) What is the definition provided for current assets? (b) What is the definition of an intangible asset? In what section...

Q: Crane Corporation has the following accounts included in its December 31,

Crane Corporation has the following accounts included in its December 31, 2012, trial balance: Equity Investments (trading) $21,000; Goodwill $150,000; Prepaid Insurance $12,000; Patents $220,000; Fra...

Q: Patrick Corporation’s adjusted trial balance contained the following asset accounts at December

Patrick Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2012: Prepaid Rent $12,000; Goodwill $50,000; Franchise Fees Receivable $2,000; Franchises $47,000;...

Q: Presented below is the balance sheet of Sargent Corporation for the current

Presented below is the balance sheet of Sargent Corporation for the current year, 2012. The following information is presented. 1. The current assets section includes: cash $150,000, accounts receiv...

Q: Early in January 2013, Hopkins Company is preparing for a meeting

Early in January 2013, Hopkins Company is preparing for a meeting with its bankers to discuss a loan request. Its bookkeeper provided the following accounts and balances at December 31, 2012. Except...

Q: Presented below is the balance sheet for Tomkins plc, a British

Presented below is the balance sheet for Tomkins plc, a British company. Instructions (a) Identify at least three differences in balance sheet reporting between British and U.S. firms, as shown in T...

Q: Langrova Inc. has the following amounts included in its general ledger

Langrova Inc. has the following amounts included in its general ledger at December 31, 2012. Organization costs ………………………………………………………………………………………………… $24,000 Trademarks …………………………………………………………………………………...

Q: As the recently appointed auditor for Hillary Corporation, you have been

As the recently appointed auditor for Hillary Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2012, are prepared. The controller for H...

Q: Powerglide Company, organized in 2011, has set up a single

Powerglide Company, organized in 2011, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2012. Instructions Prep...

Q: Devon Harris Company has provided information on intangible assets as follows.

Devon Harris Company has provided information on intangible assets as follows. A patent was purchased from Bradtke Company for $2,500,000 on January 1, 2011. Harris estimated the remaining useful life...

Q: Montana Matt’s Golf Inc. was formed on July 1, 2011

Montana Matt’s Golf Inc. was formed on July 1, 2011, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to i...

Q: Information concerning Sandro Corporation’s intangible assets is as follows. 1

Information concerning Sandro Corporation’s intangible assets is as follows. 1. On January 1, 2012, Sandro signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial fra...

Q: Reichenbach Co., organized in 2011, has set up a single

Reichenbach Co., organized in 2011, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2012 and 2013. Instruction...

Q: Go to the book’s companion website and use information found there to

Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) (1) What amounts for intangible assets were...

Q: Merck & Co., Inc. and Johnson & Johnson are two

Merck & Co., Inc. and Johnson & Johnson are two leading producers of healthcare products. Each has considerable assets, and each expends considerable funds each year toward the development of...

Q: On January 2, 2012, Raconteur Corp. reported the following

On January 2, 2012, Raconteur Corp. reported the following intangible assets: (1) Copyright with a carrying value of $15,000, and (2) A trade name with a carrying value of $8,500. The trade name has a...

Q: In this simulation, you are asked to address questions related to

In this simulation, you are asked to address questions related to intangible assets and similar costs. Prepare responses to all parts.

Q: The financial statements of Marks and Spencer plc (M&S

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://corporate.marksandspencer.com/documents/publications/2010/Annual_Repo...

Q: Where can authoritative IFRS guidance related to intangible assets be found?

Where can authoritative IFRS guidance related to intangible assets be found?

Q: This case is a continuation of Cases 2.4 and 3

This case is a continuation of Cases 2.4 and 3.4. (a) Open the financial statement analysis template that you saved from the Chapter 3 hydrogenics Case. Click on the “Cov...

Q: The following excerpts are from the 2013 Form 10-K of

The following excerpts are from the 2013 Form 10-K of Facebook, Inc11. See Accompanying Notes to Consolidated Financial Statements. See Accompanying Notes to Consolidated Financial Statement...

Q: The hydrogenics case is the first in a series of four cases

The hydrogenics case is the first in a series of four cases that illustrate a comprehensive analysis of an international corporation. In this case the balance sheet will be analyzed with the income st...

Q: Dynamo Manufacturing paid cash to acquire the assets of an existing company

Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life…â...

Q: Use the Target Corporation’s Form 10-K to answer the following

Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s 2015 fiscal year (year ended January 30, 2016). Target’s Form 10-K is available on the company’s website or...

Q: Most accounting professionals would agree that the accounting profession has developed effective

Most accounting professionals would agree that the accounting profession has developed effective tools for measuring and reporting events involving tangible assets. Most might also agree that the prof...

Q: In its annual report to stockholders, Hakobe Inc. presents a

In its annual report to stockholders, Hakobe Inc. presents a condensed balance sheet with detailed data provided in supplementary schedules. 1. From the adjusted trial balance of Hakobe, prepare the f...

Q: Diageo is a United Kingdom (UK) consumer products firm,

Diageo is a United Kingdom (UK) consumer products firm, best known in the United States for the following brand names: Smirnoff, Johnnie Walker, J&B, Gordon’s, Seagramâ...

Q: Marriott International Inc. (MAR) and Hilton Wordwide Holdings Inc

Marriott International Inc. (MAR) and Hilton Wordwide Holdings Inc. (HLT) operate hotels worldwide. The following data (in millions) were adapted from recent financial statements of Mar...

Q: La-Z-Boy Inc. (LZB) is one

La-Z-Boy Inc. (LZB) is one of the world’s largest manufacturer of furniture and is best known for its reclining chairs. The following data (in thousands) were adapted from recent &iu...

Q: United Continental Holdings, Inc., (UAL), operates passenger service

United Continental Holdings, Inc., (UAL), operates passenger service throughout the world. The following data (in millions) were adapted from a recent financial statement of United. 1...

Q: Southwest Airlines (LUV) operates passenger services throughout the United States

Southwest Airlines (LUV) operates passenger services throughout the United States. The following data (in millions) were adapted from a recent financial statement of Southwest. 1. Com...

Q: 1. Compare the asset turnover ratios for Delta Air Lines (

1. Compare the asset turnover ratios for Delta Air Lines (see the chapter illustration), United (MBA 7-5), Southwest (MBA 7-6), and JetBlue (MBA 7-7). Use Year 2 of Delta and JetBlue for your comparis...

Q: Balance sheet data for a company for the years ended December 31

Balance sheet data for a company for the years ended December 31, 20Y2 and 20Y1, are shown below. Prepare a comparative balance sheet for 20Y2 and 20Y1, stating each asset as a percent of total asse...

Q: The bond indenture for the 10-year, 8% debenture

The bond indenture for the 10-year, 8% debenture bonds dated January 2, 20Y8, required working capital of $200,000, a current ratio of 2.0, and a quick ratio of 1.0 at the end of each calendar year un...

Q: Data related to the acquisition of timber rights and intangible assets of

Data related to the acquisition of timber rights and intangible assets of Gemini Company during the current year ended December 31 are as follows: a. On December 31, Gemini Company determined that $3,...

Q: Using the data from P7-5, indicate the effects on

Using the data from P7-5, indicate the effects on the liquidity metric free cash flow and profitability metric asset turnover for each of the following: ▪ Impaired goodwill ▪ Patent amortization ▪ Natur...

Q: The idea of using the difference between the market value of the

The idea of using the difference between the market value of the firm and accounting book values as an indicator of market power and/or valuable intangible assets stems from the pioneering work of Nob...

Q: On January 1, 20X4, Alum Corporation acquired DaSilva Company,

On January 1, 20X4, Alum Corporation acquired DaSilva Company, a Brazilian subsidiary, by purchasing all its common stock at book value. DaSilva’s trial balances on January 1, 20X4,...

Q: Refer to the information in Problem P12-21. Assume that

Refer to the information in Problem P12-21. Assume that the dollar is the functional currency. Required: Prepare a schedule remeasuring DaSilva Company’s December 31, 20X4,...

Q: Locate the 2009 financial statements for The Walt Disney Company on the

Locate the 2009 financial statements for The Walt Disney Company on the Internet. Use those financial statements and consider the following questions. 1. As illustrated in Exhibit 10-10, Interbrand es...

Q: Transactions during 2013 of the newly organized Menlove Corporation included the following

Transactions during 2013 of the newly organized Menlove Corporation included the following: Jan. 2 Paid legal fees of $15,000 and stock certificate costs of $8,300 to complete organization of the corp...

Q: Based on the information given in Exercise 5-31 and using

Based on the information given in Exercise 5-31 and using the direct method, compute the net amount of cash provided by (used in) operating activities for the year. In Exercise 5-31 The following inf...

Q: Following is information for Goulding Manufacturing Company: (a)

Following is information for Goulding Manufacturing Company: (a) Long-term debt of $500,000 was retired at face value. (b) New machinery was purchased for $62,000. (c) Common stock with a par value of...

Q: The following information was taken from the comparative financial statements of Tulip

The following information was taken from the comparative financial statements of Tulip Corporation: Net income for year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: What are examples of intangible assets held by governments? How are

What are examples of intangible assets held by governments? How are they recorded?

Q: Briefly describe the three types of intangible assets in terms of amortization

Briefly describe the three types of intangible assets in terms of amortization and impairment.

Q: For the year ended June 30, 2011, A.E

For the year ended June 30, 2011, A.E.G. Enterprises presented the financial statements below. Early in the new fiscal year, the officers of the firm formalized a substantial expansion plan. The plan...

Q: Haley Company, organized in 2014, has these transactions related to

Haley Company, organized in 2014, has these transactions related to intangible assets in that year: Jan. 2 Purchased a patent (5-year life) $280,000. Apr. 1 Goodwill acquired as a result of purcha...

Q: Refer to the financial statements and the Notes to Consolidated Financial Statements

Refer to the financial statements and the Notes to Consolidated Financial Statements of Tootsie Roll Industries in Appendix A. Appendix A: Instructions: Answer the following questions. (a) What wer...

Q: The intangible assets section of Cedeno Corporation’s balance sheet at December 31

The intangible assets section of Cedeno Corporation’s balance sheet at December 31, 2014, is presented here. Patents ($60,000 cost less $6,000 amortization) ……………………………$54,000 Copyrights ($36,000 cos...

Q: Danner Corporation and London Corporation, two companies of roughly the same

Danner Corporation and London Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the str...

Q: The intangible assets section of the balance sheet for Venable Company at

The intangible assets section of the balance sheet for Venable Company at December 31, 2014, is presented here. Patents ($70,000 cost less $7,000 amortization) ……………………………………. $63,000 Copyrights ($48...

Q: Quiver Corporation and Swaze Corporation, two corporations of roughly the same

Quiver Corporation and Swaze Corporation, two corporations of roughly the same size, are both involved in the manufacture of umbrellas. Each company depreciates its plant assets using the straight-lin...

Q: Berwik Company hires an accounting intern who says that intangible assets should

Berwik Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain.

Q: Due to rapid employee turnover in the accounting department, the following

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Maxwell Corporation in 2014. 1. Maxwell developed a new...

Q: The financial statements of Zetar plc are presented in Appendix C.

The financial statements of Zetar plc are presented in Appendix C. Appendix C: Instructions: Use the company’s annual report, available in the Investors section at www.zetarplc.com...

Q: Choose the best answer. 1. Colleges and universities look

Choose the best answer. 1. Colleges and universities look to which standard-setting body for GAAP? a. The GASB. b. The FASB. c. The NACUBO. d. It depends on whether the entity is public, private, or f...

Q: Warf Computers, Inc., was founded 15 years ago by Nick

Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group...

Q: Refer to the balance sheet and income statement for Apple in Appendix

Refer to the balance sheet and income statement for Apple in Appendix A. What does the company title its inventory account? Does the company present a detailed calculation of its cost of goods sold?...

Q: Refer to Samsung’s balance sheet in Appendix A. If it made

Refer to Samsung’s balance sheet in Appendix A. If it made an adjustment for unpaid wages at year-end, where would the accrued wages be reported on its balance sheet? Samsungâ...

Q: Refer to Samsung’s most recent balance sheet in Appendix A. Identify

Refer to Samsung’s most recent balance sheet in Appendix A. Identify and list its nine current assets. Samsung’s Balance Sheet from Appendix A: /

Q: Refer to Apple’s financial statements in Appendix A for the following questions

Refer to Apple’s financial statements in Appendix A for the following questions. Apple’s Financial Statements from Appendix A: Required 1. What amount of to...

Q: Adidas AG reports the following balance sheet accounts for the year ended

Adidas AG reports the following balance sheet accounts for the year ended December 31, 2013 (euros in millions). Prepare the balance sheet for this company as of December 31, 2013, following usual IFR...

Q: Refer to the financial statements of Apple in Appendix A near the

Refer to the financial statements of Apple in Appendix A near the end of the book. To what level of significance are dollar amounts rounded? What time period does its income statement cover? Financia...

Q: Refer to Samsung’s 2013 balance sheet in Appendix A near the end

Refer to Samsung’s 2013 balance sheet in Appendix A near the end of the book. Confirm that its total assets equal its total liabilities plus total equity. Samsung’...

Q: Refer to the December 31, 2013, financial statements of Samsung

Refer to the December 31, 2013, financial statements of Samsung in Appendix A. Does Samsung report its accounts receivable as a current or noncurrent asset? Does Samsung report its GOOGLE accounts rec...

Q: Samsung’s balance sheet in Appendix A reports the change in cash and

Samsung’s balance sheet in Appendix A reports the change in cash and equivalents for the year ended December 31, 2013. Identify the cash generated (or used) by operating activities,...

Q: Apple’s statement of cash flows in Appendix A describes changes in cash

Apple’s statement of cash flows in Appendix A describes changes in cash and cash equivalents for the year ended September 28, 2013. What total amount is provided (used) by investing...

Q: Refer to the December 31, 2013, balance sheet of Samsung

Refer to the December 31, 2013, balance sheet of Samsung in Appendix A. What long-term assets discussed in this chapter are reported by the company? Samsung’s Balance Sheet from App...

Q: Refer to the financial statements for Samsung in Appendix A. How

Refer to the financial statements for Samsung in Appendix A. How much were its cash payments for treasury stock purchases for the year ended December 31, 2013? Samsung’s Financial S...

Q: By what amount did Samsung’s long-term borrowings increase or decrease

By what amount did Samsung’s long-term borrowings increase or decrease in 2013? Samsung’s Financial Statements from Appendix A:

Q: Refer to the statement of cash flows for Samsung in Appendix A

Refer to the statement of cash flows for Samsung in Appendix A. For the year ended December 31, 2013, what was the amount for repayment of long-term borrowings and debentures? Samsungâ€
...

Q: Refer to Samsung’s 2013 statement of cash flows in Appendix A.

Refer to Samsung’s 2013 statement of cash flows in Appendix A. List its cash flows from operating activities, investing activities, and financing activities. Samsungâ€
...

Q: Refer to Apple’s statement of cash flows in Appendix A.

Refer to Apple’s statement of cash flows in Appendix A. (a) Which method is used to compute its net cash provided by operating activities? (b) Its balance sheet shows an increase in...

Q: Refer to Samsung’s statement of cash flows in Appendix A. What

Refer to Samsung’s statement of cash flows in Appendix A. What investing activities result in cash outflows for the year ended December 31, 2013? List items and amounts. Samsung&aci...

Q: Refer to Apple’s financial statements in Appendix A and compute its cost

Refer to Apple’s financial statements in Appendix A and compute its cost of goods available for sale for the year ended September 28, 2013. Apple’s Financial State...

Q: Refer to Samsung’s financial statements in Appendix A. Compute its cost

Refer to Samsung’s financial statements in Appendix A. Compute its cost of goods available for sale for the year ended December 31, 2013. Samsung’s Financial State...

Q: Refer to Samsung’s financial statements in Appendix A. What percent of

Refer to Samsung’s financial statements in Appendix A. What percent of its current assets are inventory as of December 31, 2013 and 2012? Samsung’s Financial State...

Q: Identify the following assets a through h as reported on the balance

Identify the following assets a through h as reported on the balance sheet as intangible assets (IA), natural resources (NR), or other (O). ______ a. Oil well ______ b. Trademark ______ c. Leasehold _...

Q: Refer to the financial statements and notes of Apple in Appendix A

Refer to the financial statements and notes of Apple in Appendix A. In its presentation of accounts receivable on the balance sheet, how does it title accounts receivable? What does it report for its...

Q: Refer to the financial statements of Samsung in Appendix A. What

Refer to the financial statements of Samsung in Appendix A. What does Samsung title its accounts receivable on its consolidated balance sheet? What are Samsung’s accounts receivable...

Q: Neopost SA is a French company operating mainly in Europe and the

Neopost SA is a French company operating mainly in Europe and the United States that sells and leases mailroom equipment. In accordance with IFRS, the company capitalizes development costs when certai...

Q: Gamma Holding NV, a Dutch textile company, presented the following

Gamma Holding NV, a Dutch textile company, presented the following calculation of operating profit in its 2009 consolidated income statement: € × 1,000,000 2009 N...

Q: During Year 1, Reforce Company conducted research and development on a

During Year 1, Reforce Company conducted research and development on a new product. By March 31, Year 2, the company had determined the new product was technologically feasible, and the company obtain...

Q: In translating the financial statements of a foreign subsidiary into the parent’s

In translating the financial statements of a foreign subsidiary into the parent’s reporting currency under the current rate method, which of the following statements is true? a. Expenses are translate...

Q: Which intangible assets are subject to annual impairment testing?

Which intangible assets are subject to annual impairment testing?

Q: Refer to Exhibits 6.3, 6.7, and

Refer to Exhibits 6.3, 6.7, and 6.9. Required: Explain the main areas you would focus on in comparing financial statements prepared by companies in China, Japan, and Mexico with those prepared by com...

Q: Refer to Exhibits 6.3, 6.5, 6

Refer to Exhibits 6.3, 6.5, 6.7, 6.8, and 6.12. Required: Identify a. An issue in respect of which the practices of several countries discussed in this chapter are at variance with IFRS. b. The most...

Q: Refer to Apple’s financial statements in Appendix A. Compute its profit

Refer to Apple’s financial statements in Appendix A. Compute its profit margin for the years ended September 28, 2013, and September 29, 2012. Apple’s Financial St...

Q: Refer to Samsung’s financial statements in Appendix A. Compute its debt

Refer to Samsung’s financial statements in Appendix A. Compute its debt ratio as of December 31, 2013, and December 31, 2012. Samsung’s Financial Statements from A...

Q: Use Samsung’s financial statements in Appendix A to compute its return on

Use Samsung’s financial statements in Appendix A to compute its return on total assets for fiscal year ended December 31, 2013. Samsung’s Financial Statements from...

Q: Tucker-Breen Investments specializes in low-risk government bonds.

Tucker-Breen Investments specializes in low-risk government bonds. Identify each of Tucker-Breens transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or...

Q: Burke-Cassidy Investments specializes in low-risk government bonds.

Burke-Cassidy Investments specializes in low-risk government bonds. Identify each of Burke-Cassidys transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF),...

Q: During 2005, eBay acquired four different companies. In the schedule

During 2005, eBay acquired four different companies. In the schedule below, the acquired companies are listed with the aggregate purchase price and with the estimated acquisition-related costs (dollar...

Q: On October 14, 2005, eBay acquired all of the outstanding

On October 14, 2005, eBay acquired all of the outstanding securities of Skype Technologies S.A. (“Skype”), for a total initial consideration of approximately $2.593 billion, plus potential performance...

Q: On November 19, 2009, eBay sold all the capital shares

On November 19, 2009, eBay sold all the capital shares of Skype to Springboard Group. eBay received cash proceeds of approximately $1.9 billion, a subordinated note issued by a subsidiary of the Buyer...

Q: Consider the following information from Alliance Data Systems Corporation 2009 10K.

Consider the following information from Alliance Data Systems Corporation 2009 10K. On October 30, 2009, the Company assumed the operations of the Charming Shoppes’ credit card prog...

Q: On February 23, 2005, eBay acquired Viva Group, Inc

On February 23, 2005, eBay acquired Viva Group, Inc., which does business under the name Rent.com, for a cash purchase price of approximately $435.365 million including net cash and investments of app...

Q: LoJack is a leading global provider of technology products and services for

LoJack is a leading global provider of technology products and services for the tracking and recovery of valuable mobile assets and people at risk of wandering. According to a recent Federal Bureau of...

Q: In 2015 Microsoft Corporation reported a $5.1 billion charge

In 2015 Microsoft Corporation reported a $5.1 billion charge for the impairment of goodwill and a $2.2 billion charge for the impairment of intangible assets in one of its reporting units (segments) i...

Q: Jonas Tech Corporation recently acquired Innovation Plus Company. The combined firm

Jonas Tech Corporation recently acquired Innovation Plus Company. The combined firm consists of three related businesses that will serve as reporting units. In connection with the acquisition, Jonas r...

Q: Alomar Co., a consolidated enterprise, conducted an impairment review for

Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for...

Q: Destin Company recently acquired several businesses and recognized goodwill in each acquisition

Destin Company recently acquired several businesses and recognized goodwill in each acquisition. Destin has allocated the resulting goodwill to its three reporting units: Sand Dollar, Salty Dog, and B...

Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of

Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $400,000. Any excess fair value was assigned to int...

Q: Green Mountain Coffee Roasters reported net income for the year ended

Green Mountain Coffee Roasters reported net income for the year ended September 26, 2009 of $54.439 million. There were 120,370,659 common shares outstanding. On November 13, 2009, Green Mountain acqu...

Q: Aer Lingus is an international airline based in Ireland. Exhibit 3

Aer Lingus is an international airline based in Ireland. Exhibit 3.24 provides the statement of cash flows for Year 1 and Year 2, which includes a footnote from the financial statements. Year 2 was ch...

Q: Exhibits 1.26–1.28 of Integrative Case 1

Exhibits 1.26–1.28 of Integrative Case 1.1 (Chapter 1) present the financial statements for Walmart for 2012–2015. In addition, the website for this text contains W...

Q: VF Corporation is an apparel company that owns recognizable brands like Timberland

VF Corporation is an apparel company that owns recognizable brands like Timberland, Vans, Reef, and 7 For All Mankind. Exhibit 5.18 and 5.19 present balance sheets and income statements, respectively,...

Q: Disclosures related to income taxes for The Coca-Cola Company (

Disclosures related to income taxes for The Coca-Cola Company (Coca-Cola) for 2006–2008 appear in Exhibit 9.9. REQUIRED: a. Why are Coca-Cola’s average tax rates s...

Q: The Coca-Cola Company is a global soft drink beverage company

The Coca-Cola Company is a global soft drink beverage company (ticker: KO) that is a primary and direct competitor with Starbucks. The data in Chapter 12’s Exhibits 12.14, 12.15, and...

Q: Components of the deferred tax asset of Biosante Pharmaceuticals, Inc.,

Components of the deferred tax asset of Biosante Pharmaceuticals, Inc., are shown in Exhibit 2.10. The company had no deferred tax liabilities. REQUIRED: a. At the end of 2008, the largest deferred t...

Q: The financial statements of Nike, Inc., reveal the information regarding

The financial statements of Nike, Inc., reveal the information regarding income taxes shown in Exhibit 2.13. REQUIRED: a. Assuming that Nike had no significant permanent differences between book inco...

Q: Use the preceding information for Palto’s purchase of Saleen common stock.

Use the preceding information for Palto’s purchase of Saleen common stock. Assume Palto purchases 80% of the Saleen common stock for $300,000 cash. Palto has the following balance sh...

Q: On January 1, 2015, Peanut Company acquired 80% of

On January 1, 2015, Peanut Company acquired 80% of the common stock of Salt Company for $200,000. On this date, Salt had total owners’ equity of $200,000 (including retained earnings...

Q: On January 1, 2015, Peanut Company acquired 80% of

On January 1, 2015, Peanut Company acquired 80% of the common stock of Salt Company for $200,000. On this date, Salt had total owners’ equity of $200,000, which included retained ear...

Q: On January 1, 2015, Peanut Company acquired 80% of

On January 1, 2015, Peanut Company acquired 80% of the common stock of Salt Company for $200,000. On this date, Salt had total owners’ equity of $200,000. During 2015 and 2016, Peanu...

Q: Refer to the preceding information for Paulcraft’s acquisition of Switzer’s common stock

Refer to the preceding information for Paulcraft’s acquisition of Switzer’s common stock. Assume that Paulcraft pays $420,000 for 70% of Switzer common stock. Paulc...

Q: Ripley Corporation’s accumulated depreciation—equipment account increased by $15,

Ripley Corporation’s accumulated depreciation—equipment account increased by $15,325 while $3,800 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of...

Q: The following tables were excerpted from Pepsico’s 2015 Form 10-K

The following tables were excerpted from Pepsico’s 2015 Form 10-K. All amounts are in millions of dollars and the deferred tax asset and liability amounts are as of December 31 of th...

Q: Excerpts from Starbucks Corporation’s tax note from the company’s Form 10-

Excerpts from Starbucks Corporation’s tax note from the company’s Form 10-K for the year ended September 27, 2015, follow. Required: 1. Provide a journal entry...

Q: Royal Dutch Shell had pretax income of $2,047 million

Royal Dutch Shell had pretax income of $2,047 million, $28,314 million and $33,592 million in 2015, 2014, and 2013, respectively. Presented below are excerpts from the 2015 annual report of Royal Dutc...

Q: Refer to the financial statements and notes for Panera Bread Company included

Refer to the financial statements and notes for Panera Bread Company included at the back of the book. Financial statements and notes for Panera Bread Company: Required: 1. What items does the comp...

Q: Erin Company incurred the following costs during 2017 and 2018:

Erin Company incurred the following costs during 2017 and 2018: a. Research and development costing $20,000 was conducted on a new product to sell in future years. A product was successfully developed...

Q: The following balance sheet accounts (in millions of dollars) have

The following balance sheet accounts (in millions of dollars) have been taken from the annual report for a U.S. bank. Arrange the accounts in balance sheet order and determine the value of total asset...

Q: Ivanhoe Energy, a Canadian company, incurs net foreign exchange adjustments

Ivanhoe Energy, a Canadian company, incurs net foreign exchange adjustments in 2010. The U.S. dollar is the functional currency. In 2010, the Canadian dollar continued to strengthen relative to the U....

Q: Air France—KLM Group reports the following balance sheet for the

Air France—KLM Group reports the following balance sheet for the year ended December 31, 2013. Required: A. In what order are assets listed on the balance sheet? B. Comment on other...

Q: Repurchase agreements are listed as both assets and liabilities in Table 12

Repurchase agreements are listed as both assets and liabilities in Table 12–1. How can an account be both an asset and a liability? Table 12–1:

Q: Exhibit 4.3 presents the balance sheet prepared by Svenson,

Exhibit 4.3 presents the balance sheet prepared by Svenson, a Swedish telecommunications firm, for Years 7 and 6. Svenson applies IFRS and reports its results in millions of Swedish kronor (SEK). In a...

Q: The following information is based on the fiscal Year 7 balance sheet

The following information is based on the fiscal Year 7 balance sheet of Delicious Foods Group, a Belgian food distributor. Delicious Foods applies IFRS and reports its results in millions of euros. P...

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IFRS. Repeat the requirements in P11-10 assuming that Hein Technologies reports under IFRS. Assume that all the conditions to capitalize development costs have been met. What is the difference between...

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How can intangible assets pose some significant valuation problems? Does the determination of useful life for an intangible asset pose a valuation problem? Explain.

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Do all intangible assets require amortization? Why or why not?

Q: Alto Devices acquires Medifast, a small start-up company,

Alto Devices acquires Medifast, a small start-up company, by paying $2,170,000 in cash on January 2. Following are the book values and fair values of Medifast on the date of acquisition. Required: a...

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Under certain circumstances, IFRS allows some intangible assets to be revalued, whereas U.S. GAAP does not allow revaluation. Read the Basis for Conclusions in IAS 38, Intangible Assets, particularly...

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BlackBerry Limited, the smartphone manufacturer, reported a $2,748 million impairment loss on its income statement during the year ended March 1, 2014. You are interested in further examining this and...

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Use the same information from E12-4 but now treat SMC Research Associates as an IFRS reporter. Required: a. Compute the impairment loss (if any) for each intangible asset. b. Prepare the journal e...

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Super View Company’s comparative balance sheets and its current income statement follow. Additional Information : • SuperView did not sell any plant or intangible...

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Michael Hart Associates closed its books for the current year. The firm provided the following comparative balance sheets and income statement. Additional Information: The company sold its indefinit...

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SMC Research Associates reports the following intangible assets on its December 31 balance sheet: It does not use a separate accumulated amortization account for the intangible assets (i.e., it deduc...

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Fredrick Wilson Company determined that one of its finite-life intangible assets is impaired. The asset’s net carrying value on the date of the impairment is $905,000. Fredrick Wilso...

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The Khan Group provided its balance sheet and income statement as of December 31 of the current year. Additional Information: • The company classifies its current investments as trad...

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PCG, Ltd. is in the process of assessing the valuation of its intangible assets. At the end of the current year, management reported the following intangible assets. The firm acquired the franchise 2...

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Green River Company acquired 100% of the voting stock of the AutoStyle Group on January 1 of the current year for a total acquisition cost of $250,000. The trial balance of AutoStyle on the date of ac...

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Under IFRS, when do firms test plant assets and finite-life intangible assets for impairment?

Q: Under IFRS, when do firms test plant assets and finite-

Under IFRS, when do firms test plant assets and finite-life intangible assets for impairment?

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Are intangible assets recognized sufficiently under IFRS and US rules?

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Precision Construction entered into the following transactions during a recent year Required: 1. Analyze the accounting equation effects and record journal entries for each of the transactions. 2. F...

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Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

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Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

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Nike, Inc.’s principal business activity involves the design, development, and worldwide marketing of athletic footwear, apparel, equipment, accessories, and services for serious and...

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Starn Tool & Manufacturing Company, located in Meadville, PA, provides component machining for robotics, drones, vision systems, and special machines and assemblies for the aerospace, military, commer...

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On December 31, 20X1, Warren Company’s Intangible Assets account reflects two assets: 1. Goodwill, $145,000. This amount was recorded in December 20X0 as part of the cost of acquiring an existing busi...

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Selected accounts of the Johnson Company are listed below. On January 1, 20X1, the only intangible asset in the company’s accounts was Goodwill. This was recorded seven years ago when the company acqu...

Q: Postclosing trial balance data and other financial data for KB Company as

Postclosing trial balance data and other financial data for KB Company as of December 31, 2022 and 2021, follow. INSTRUCTIONS Prepare a statement of cash flows for 2022. Additional information for the...

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Q: Easton Company acquires 100% of the outstanding voting shares of Harris

Easton Company acquires 100% of the outstanding voting shares of Harris Company on January 1, 2019. To obtain these shares, Easton pays $210,000 in cash and issues 5,000 of its $10 par value common st...

Q: Identify three intangible assets that are likely to be excluded from the

Identify three intangible assets that are likely to be excluded from the balance sheet because they cannot be reliably measured.

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The following information on Siemens AG's treatment of research and development is extracted from its 2018 financial statements. Siemens AG is an integrated technology company with activities in the f...

Q: The following information relates to the intangible assets of University Testing Services

The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The f...

Q: The following information relates to the intangible assets of Lettuce Express:

The following information relates to the intangible assets of Lettuce Express: a. On January 1, 2024, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,600,000 in cash. The fair...

Q: Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system

Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Facebook for the year ended December 31, 2019. Locate the “Consolidated Statements of Income”...