Questions from Corporate Finance

Q: IFRS. Avery Air, Plc, a UK company, conducts

IFRS. Avery Air, Plc, a UK company, conducts regularly scheduled maintenance and improvement of its fleet of airplanes. During the year, it replaced engines at a cost of £2,900,000, upgraded airplane...

Q: Your success in business thus far has put you in a position

Your success in business thus far has put you in a position to purchase a home for $500,000 located close to the university you attend. You plan to pay a 20% down payment of $100,000 and borrow the re...

Q: Kurtis Koal Company, Inc. purchased a new mining machine at

Kurtis Koal Company, Inc. purchased a new mining machine at a total cost of $900,000 on the first day of its fiscal year. The firm estimates that the machine has a useful life of 6 years o...

Q: IFRS. Repeat the requirements in E11-13 assuming that Kurtis

IFRS. Repeat the requirements in E11-13 assuming that Kurtis Koal Company, Inc. is an IFRS reporter and the mining machine has two components: casing and engine. The amount allocated to the engine is...

Q: St. Charles Flooring Company recently purchased a new tile-cutting

St. Charles Flooring Company recently purchased a new tile-cutting machine with an invoice price of $215,500. The cost of delivery was $2,000, and installation amounted to $3,550. To test the machine,...

Q: On January 2 of the current year, Vaughn, Inc.

On January 2 of the current year, Vaughn, Inc. acquired land for $2,000,000 to be used to construct a new service and repair center. The closing costs amounted to $110,000, and Vaughn paid $20,000 for...

Q: Sonata Manufacturing Corporation decided to expand its operations and open a new

Sonata Manufacturing Corporation decided to expand its operations and open a new facility in Illinois. Rather than constructing a new plant, Sonata negotiated a contract to purchase an existing facili...

Q: On December 31, 2018, the Clearwater Corporation acquired a custom

On December 31, 2018, the Clearwater Corporation acquired a custom-made plant asset by issuing a promissory note with a face value of $750,000, a due date of December 31, 2023, and a stated (coupon) r...

Q: Quartech Enterprises manufactures and distributes thermostats for major kitchen appliances. At

Quartech Enterprises manufactures and distributes thermostats for major kitchen appliances. At the beginning of the current year, Quartech decided to expand its operations by acquiring a metal solderi...

Q: Assume that the Ecara Video Game Company reports under IFRS. Repeat

Assume that the Ecara Video Game Company reports under IFRS. Repeat the requirement of E11-31, part (c). Data from E11-31: Prepare the journal entry for Ecara to record the exchange as if the exchange...