Questions from Financial Accounting

Q: Swift Corporation incorporated on January 1, 2020, and incurred $

Swift Corporation incorporated on January 1, 2020, and incurred $45,000 in organization costs. a. Should Swift Corporation capitalize or expense these costs? Defend your answer. b. If these costs are...

Q: The following information was taken from the internal financial records of Southern

The following information was taken from the internal financial records of Southern Robotics regarding a patent filed in 2020 for a new robotics arm used for manufacturing: 1. Legal and filing fees of...

Q: Firton Brothers purchased for $90,000 a tract of land

Firton Brothers purchased for $90,000 a tract of land that included an abandoned warehouse. The warehouse was razed, and the site was prepared for a new building at a cost of $10,000. Scrap materials...

Q: The following information was taken from the financial statements of Coca-

The following information was taken from the financial statements of Coca-Cola and PepsiCo (dollar amounts in millions). a. Compute return on equity, return on assets, capital structure leverage, prof...

Q: When Salesforce purchased MuleSoft for $6.4 billion in cash

When Salesforce purchased MuleSoft for $6.4 billion in cash, it acquired assets with a fair market value of $1.9 billion and assumed the liabilities of MuleSoft valued at $0.2 billion. INSTRUCTIONS: a...

Q: In the footnotes to its IFRS-based financial statements, European

In the footnotes to its IFRS-based financial statements, European Aeronautical Defense and Space Company (EADS), parent company for Airbus, includes a description of a long-lived asset account called...

Q: The following items represent common postacquisition expenditures incurred on machinery:

The following items represent common postacquisition expenditures incurred on machinery: a. Lubrication service b. Painting costs c. Cleaning expenditures d. Rewiring costs to increase operating speed...

Q: The condensed balance sheet as of December 31, 2020, for

The condensed balance sheet as of December 31, 2020, for Van Den Boom Enterprises follows: Sales and operating expenses (other than amortization) are predicted to be $65,000 and $20,000, respectively,...

Q: Stork Freight Company owns and operates 15 planes that deliver packages worldwide

Stork Freight Company owns and operates 15 planes that deliver packages worldwide. The planes were purchased on January 1, 2017, for $1 million each. The company estimates that the planes will be scra...

Q: Portland Products purchased a machine on January 1, 2017, for

Portland Products purchased a machine on January 1, 2017, for $60,000 and estimated its useful life and salvage value at five years and $12,000, respectively. On January 1, 2020, the company added thr...