Questions from Corporate Finance

Q: Ferro Fuel Company (FFC) acquired a tract of land to

Ferro Fuel Company (FFC) acquired a tract of land to be used for oil and gas exploration at the beginning of the current year. FFC paid $500,000 to acquire the land, paid $325,000 in development costs...

Q: Repeat the requirements in E11-40 assuming that FFC uses the

Repeat the requirements in E11-40 assuming that FFC uses the successful-efforts method. Data from E11-40: a. Determine the total cost of the natural resource under the full-cost method. b. Prepare t...

Q: Spill Oil Corporation drilled 10 oil wells at the beginning of the

Spill Oil Corporation drilled 10 oil wells at the beginning of the current year. The total exploration costs associated with this oil and gas activity amounted to $8,500,000. Only six of the wells wer...

Q: Rolling Blackout Power Company constructed a new power plant to supply energy

Rolling Blackout Power Company constructed a new power plant to supply energy to the Northeast Electrical Grid. The construction began on January 2 and ended on December 31 of the current year. On the...

Q: How would the solution to E11-6 change if Rolling Blackout

How would the solution to E11-6 change if Rolling Blackout Power Company was an IFRS reporter and earned $11,000 interest income on investing the excess funds from the construction loan during the yea...

Q: Yawyag Corporation engaged Sir Peter, Inc. to design and construct

Yawyag Corporation engaged Sir Peter, Inc. to design and construct a manufacturing facility. Construction began on January 2 and was completed on December 31 of the current year. The following payment...

Q: Assume that the project in E11-8 was not completed in

Assume that the project in E11-8 was not completed in Year 1. Yawyag was required to make two additional payments to the contractor in Year 2: $900,000 on April 1 and $1,800,000 on August 1 of Year 2....

Q: IFRS. Assume that the Yawyag Corporation in E11-8 is

IFRS. Assume that the Yawyag Corporation in E11-8 is an IFRS reporter and complete the following: Required: a. Compute the weighted-average accumulated expenditures for the current year. b. Comput...

Q: You have been asked to account for a plant asset exchange on

You have been asked to account for a plant asset exchange on the books of the Ecara Video Game Company. On January 1, 2013, Ecara acquired a plastic extruding machine at a cost of $260,000. This machi...

Q: Clave Building Products, Inc. conducts regularly scheduled maintenance of its

Clave Building Products, Inc. conducts regularly scheduled maintenance of its machinery and equipment every Friday afternoon. The cost of maintenance for the current year amounted to $345,000. The reg...