Questions from Auditing and Assurance

Q: Stacey became an employee of DotGismo, Inc., a privately held

Stacey became an employee of DotGismo, Inc., a privately held firm. On December 15, 20X3, Stacey was allowed to buy 20,000 shares of DotGismo stock for $40,000 dollars. At that time when Stacey bough...

Q: For the past two years, Minsu, a Korean American,

For the past two years, Minsu, a Korean American, worked as a high school physical education teacher. He was also a body-builder and a part-time graduate student in educational technology at State Uni...

Q: Sylvia is a professor in business at the University of Hawaii.

Sylvia is a professor in business at the University of Hawaii. She went on sabbatical for an academic year to take courses in Chinese at National Taiwan University in Taipei, Taiwan, to expand her kno...

Q: Mary Howard, CPA, has long audited the Wheat City Grain

Mary Howard, CPA, has long audited the Wheat City Grain Company’s financial statements. Much of Wheat City’s assets consist of wheat stored in three of its grain elevators, and the Company maintains...

Q: Hidetoshi was a world-renowned rock star from NewCountry. Sony

Hidetoshi was a world-renowned rock star from NewCountry. Sony-USA Records contracted with Hidetoshi to produce records. Sony-USA Records retained all intellectual property rights in the recordings. T...

Q: Xco an accrual basis taxpayer has various lines of businesses. One

Xco an accrual basis taxpayer has various lines of businesses. One business is a gas station. The land underneath the gas station was not contaminated when Xco purchased it. However, the land now has...

Q: Taxpayer is a securities firm. Taxpayer uses the accrual method of

Taxpayer is a securities firm. Taxpayer uses the accrual method of accounting. Taxpayer executes stock trades and performs settlement functions. Settlement functions include recording the sale and c...

Q: Zimmer Chemical Co. has chemical manufacturing facilities around the world.

Zimmer Chemical Co. has chemical manufacturing facilities around the world. Recently, Zimmer erected a new facility in South Korea at a cost of $48 million and plans to operate the new facility for a...

Q: Northwood Industries, a U.S.-based public company,

Northwood Industries, a U.S.-based public company, has two subsidiaries located in Europe. These two subsidiaries are required to prepare their individual financial statements in accordance with IFRS....

Q: JB Company recently acquired 100% of Sampson Company for $150

JB Company recently acquired 100% of Sampson Company for $150,000 cash. Both companies are located outside of the United States and JB needs to prepare consolidated financial statements. JB provided t...