Questions from Advanced Accounting

Q: Identify the main factors to be used when ranking the importance of

Identify the main factors to be used when ranking the importance of issues to be resolved.

Q: SENS Ltd. acquired equipment on January 1, Year 1,

SENS Ltd. acquired equipment on January 1, Year 1, for $500,000. The equipment was depreciated on a straight-line basis over an estimated useful life of 10 years. On January 1, Year 3, SENS sold this...

Q: Peggy Company owns 75% of Sally Inc. and uses the

Peggy Company owns 75% of Sally Inc. and uses the cost method to account for its investment. The following data were taken from the Year 4 income statements of the two companies: On January 1, Year...

Q: The comparative consolidated income statements of a parent and its 75%-

The comparative consolidated income statements of a parent and its 75%-owned subsidiary were prepared incorrectly as at December 31 and are shown in the following table. The following items were overl...

Q: Hanna Corporation owns 80% of the outstanding voting stock of Fellow

Hanna Corporation owns 80% of the outstanding voting stock of Fellow Inc. At the date of acquisition, Fellow's retained earnings were $2,100,000. On December 31, Year 2, Hanna Inc. sold equipment to F...

Q: On December 31, Year 2, HABS Inc. sold equipment

On December 31, Year 2, HABS Inc. sold equipment to NORD at its fair value of $2,000,000 and recorded a gain of $500,000. This was HABS's only income (other than any investment income from NORD) durin...

Q: The balance sheets of Forest Company and Garden Company are presented below

The balance sheets of Forest Company and Garden Company are presented below as at December 31, Year 8. Additional Information: • Forest acquired 90% of Garden for $207,900 on July...

Q: On January 1, Year 4, Goodkey Co. acquired all

On January 1, Year 4, Goodkey Co. acquired all of the common shares of Jingya. The condensed income statements for the two companies for January Year 5, were as follows: The following transactions o...

Q: Income statements of M Cop. and K Co. for the

Income statements of M Cop. and K Co. for the year ended December 31, Year 9, are presented below: Additional Information • M Co. uses the equity method to account for its investme...

Q: Pure Company purchased 70% of the ordinary shares of Gold Company

Pure Company purchased 70% of the ordinary shares of Gold Company on January 1, Year 6, for $483,000 when the latter company's accumulated depreciation, ordinary shares and retained earnings were $75,...