Questions from Financial Reporting

Q: On January 2, 2016, Half, Inc., purchased a

On January 2, 2016, Half, Inc., purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $144,000 estimated salvage value. Half expects to manufacture 1,800,0...

Q: On June 30, 2017, Macrosoft Company acquired a 10-

On June 30, 2017, Macrosoft Company acquired a 10-acre tract of land. On the tract was a warehouse that Macrosoft intended to use as a distribution center. At the time of purchase, the land had an ass...

Q: Cayman Diving, Inc., needs to acquire a new dive boat

Cayman Diving, Inc., needs to acquire a new dive boat. The seller will accept a noninterest bearing note for $400,000 due in four years or $250,000 in cash. The company’s incremental cost of borrowing...

Q: On April 23, 2017, Starlight Department Stores, Inc.,

On April 23, 2017, Starlight Department Stores, Inc., acquired a 75-acre tract of land by paying $25,000,000 in cash and by issuing a six-month note payable for $5,000,000 and 1,000,000 shares of its...

Q: Hoyle Company owns a manufacturing plant with a fair value of $

Hoyle Company owns a manufacturing plant with a fair value of $4,600,000, a recorded cost of $8,500,000, and accumulated depreciation of $3,650,000. Patterson Company owns a warehouse with a fair valu...

Q: Fly-by-Night is an international airline company. Its

Fly-by-Night is an international airline company. Its fleet includes Boeing 757s, 747s, and 737s and McDonnell Douglas MD-83s and MD-80s. Assume that Fly-by-Night made the following expenditures relat...

Q: Four years ago Omega Technology, Inc., acquired a machine to

Four years ago Omega Technology, Inc., acquired a machine to use in its computer chip manufacturing operations at a cost of $35,000,000. The firm expected the machine to have a seven-year useful life...

Q: Yachting in Paradise, Inc., was founded late in 2010 by

Yachting in Paradise, Inc., was founded late in 2010 by retired Admiral Andy Willits to provide executive retreats aboard a luxury yacht with ports of call scattered around the South Pacific. Yachting...

Q: Groupe Casino is a French multinational company that operates more than 9

Groupe Casino is a French multinational company that operates more than 9,000 multiformat retail stores—hypermarkets, supermarkets, discount stores, convenience stores, and restaurants— throughout the...

Q: The income statement for the year ended December 31, 2017,

The income statement for the year ended December 31, 2017, as well as the balance sheets as of December 31, 2017, and December 31, 2016, for Lucky Lady Inc. follow. This information is taken from the...