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Sorocaba Ltda. sold a building to Banco Janeiro on January 1, 2017, for 200,000 reais and then leased it back under a 10-year lease agreement, which is accounted for as an operating lease. The buildin...
See AnswerQ: Izmir A.S. issued convertible bonds at their face value
Izmir A.S. issued convertible bonds at their face value of 100,000 lira on December 31, 2017. The bonds have a 10-year life with interest of 10 percent payable annually. At the date of issue, the prev...
See AnswerQ: Surat Limited paid cash to acquire an aircraft on January 1,
Surat Limited paid cash to acquire an aircraft on January 1, 2017, at a cost of 30,000,000 rupees. The aircraft has an estimated useful life of 40 years and no salvage value. The company has determine...
See AnswerQ: Which forms do most companies file with the SEC in connection with
Which forms do most companies file with the SEC in connection with the offering of securities to the public?
See AnswerQ: On January 1, 2017, Xiamen Company made amendments to its
On January 1, 2017, Xiamen Company made amendments to its defined benefit pension plan that resulted in 60,000 yuan of past service cost. The plan has 5,000 active employees with an average expected r...
See AnswerQ: Mikkeli OY acquired a brand name with an indefinite life in 2015
Mikkeli OY acquired a brand name with an indefinite life in 2015 for 40,000 markkas. At December 31, 2017, the brand name could be sold for 35,000 markkas, with zero costs to sell. Expected cash flows...
See AnswerQ: Llungby AB spent 1,000,000 krone in 2017 on
Llungby AB spent 1,000,000 krone in 2017 on the development of a new product. The company determined that 25 percent of this amount was incurred after the criteria in IAS 36 for capitalization as an i...
See AnswerQ: Sapporo K.K. was sued by a competitor in late
Sapporo K.K. was sued by a competitor in late 2017, and company management concluded that there was a 55 percent probability that the company would lose the lawsuit. The best estimate of the loss on D...
See AnswerQ: Tapatio S.A. de C.V. acquired a
Tapatio S.A. de C.V. acquired a new piece of manufacturing equipment on January 1, 2016, for a cash price of 500,000 pesos. The equipment was expected to have a useful life of 10 years and no residual...
See AnswerQ: Xavier Company is going through a Chapter 7 bankruptcy. All assets
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,200 in free cash. The following debts, totaling $43,050, remain: Government cl...
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