Questions from Financial Accounting

Q: Under SFAS No. 13, leases that do not meet one

Under SFAS No. 13, leases that do not meet one of the four criteria for a capital lease are treated as operating leases. Team Debate: Team 1: Argue for the capitalization of leases that do not meet an...

Q: Hill Corporation, a diversified manufacturing company, has offices and operating

Hill Corporation, a diversified manufacturing company, has offices and operating locations in major cities throughout the United States. The corporate headquarters for Hill Corporation is located in C...

Q: An objective of FASB ASC 840 is that lessors and lessees should

An objective of FASB ASC 840 is that lessors and lessees should account for leases similarly. Team Debate: Team 1: Argue that a lessee should be able to account for a lease as operating leases, wherea...

Q: FASB ASC 470 contains GAAP requirements for the initial recording of convertible

FASB ASC 470 contains GAAP requirements for the initial recording of convertible debt. These debt instruments have either beneficial conversion features or conversion features that are not beneficial....

Q: Morgan Company (lessor) and Joplin Corporation (lessee) enter

Morgan Company (lessor) and Joplin Corporation (lessee) enter into a 10-year lease agreement for an office building for fixed annual lease payments of $50,000. Per the terms of the lease agreement, an...

Q: SFAS No. 87, “Employers’ Accounting for Pensions,” requires

SFAS No. 87, “Employers’ Accounting for Pensions,” requires an understanding of certain terms. Required: a. Discuss the following components of annual pension cost: i. Service cost ii. Interest cost i...

Q: Carson Company sponsors a single‐employer defined benefit pension plan.

Carson Company sponsors a single‐employer defined benefit pension plan. The plan provides that pension benefits are determined by age, years of service, and compensation. Among the components that sho...

Q: Postretirement benefits other than pensions (OPRBs) are similar to defined

Postretirement benefits other than pensions (OPRBs) are similar to defined benefit pension plans in some respects and different in others. Required: a. Discuss the characteristics of OPRBs that make t...

Q: Penny Pincher Company has a defined benefit pension plan for its employees

Penny Pincher Company has a defined benefit pension plan for its employees. The following pension data are available at year‐end (in millions): Accumulated benefit obligation ………………………. $142 Projected...

Q: Critics of SFAS No. 87 argue that its requirements result in

Critics of SFAS No. 87 argue that its requirements result in reporting pension expense that is volatile. One of the factors causing volatility is changing the discount rate used to calculate service c...