Questions from Advanced Accounting

Q: A donor gives a gift to a charity that is to be

A donor gives a gift to a charity that is to be conveyed to a separate beneficiary. What is the method of reporting for each party if the charity receives variance power enabling it to change the iden...

Q: Arcola, Inc., acquires all 40,000 shares of Tuscola

Arcola, Inc., acquires all 40,000 shares of Tuscola Company for $725,000. A year later, when Arcola’s equity adjusted balance in its investment in Tuscola equals $800,000, Tuscola issues an additional...

Q: Through the payment of $10,468,000 in cash

Through the payment of $10,468,000 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 60 percent of the subsidiary’s 100,000 outstanding common shares ($40 par...

Q: What is a debtor in possession? a. The holder

What is a debtor in possession? a. The holder of a note receivable issued by an insolvent company prior to the granting of an order for relief. b. A fully secured creditor. c. The ownership of an inso...

Q: Under what conditions does a not-for-profit entity record

Under what conditions does a not-for-profit entity record donated services?

Q: Prairie Corporation is a primary beneficiary for Vintage Company, a variable

Prairie Corporation is a primary beneficiary for Vintage Company, a variable interest entity. When Prairie obtained financial control over Vintage, any excess fair value over Prairie’s book value was...

Q: A private not-for-profit entity sends a direct mail

A private not-for-profit entity sends a direct mail solicitation for monetary donations. Other information is included with the mailing. Under what conditions can the organization report part of the c...

Q: A private not-for-profit entity receives numerous pledges of

A private not-for-profit entity receives numerous pledges of financial support to be conveyed at various times over the next few years. Under what condition should these pledges be recognized as recei...

Q: What is the difference between an unconditional promise to give and an

What is the difference between an unconditional promise to give and an intention to give?

Q: When should membership dues be considered revenue rather than contributions?

When should membership dues be considered revenue rather than contributions?