Questions from Financial Reporting

Q: On January 1, 20X0, Vick Company purchased a trademark for

On January 1, 20X0, Vick Company purchased a trademark for $400,000, which had an estimated useful life of 16 years. On January 1, 20X4, Vick paid $60,000 for legal fees in a successful defense of the...

Q: On January 2, 20X1, Lava, Inc., purchased a

On January 2, 20X1, Lava, Inc., purchased a patent for a new consumer product for $90,000. At the time of purchase, the patent was valid for 15 years; however, its useful life was estimatedto be only...

Q: During 20X1, Orr Company incurred the following costs: /

During 20X1, Orr Company incurred the following costs: Required: How much research and development expense should Orr report in 20X1?

Q: In 20X1, Ball Labs incurred the following costs:

In 20X1, Ball Labs incurred the following costs: Required: What was Ball’s total research and development expense in 20X1?

Q: Pearl, Inc., develops and markets computer software. During 20X0

Pearl, Inc., develops and markets computer software. During 20X0, one of Pearl’s engineersbegan developing a new and very innovative software product. On July 1, 20X1, a team of Pear...

Q: In January 20X1, Vorst Company purchased a mineral mine for $

In January 20X1, Vorst Company purchased a mineral mine for $2,640,000. Removable orewas estimated at 1,200,000 tons. After it has extracted all the ore, Vorst will be required by lawto restore the la...

Q: On July 1, 20X1, Ritz Company signs a contract with

On July 1, 20X1, Ritz Company signs a contract with Venticello, Inc., to install Ritz’sinventory management software throughout Venticello, Inc. Ritz will begin the installation imme...

Q: Gonzo Co. owns a building in Georgia. The building’s historical

Gonzo Co. owns a building in Georgia. The building’s historical cost is $970,000, and $440,000of accumulated depreciation has been recorded to date. During 20X1, Gonzo incurred the f...

Q: For several years, the Securities and Exchange Commission (SEC)

For several years, the Securities and Exchange Commission (SEC) has been considering whether to transition U.S. firms to International Financial Reporting Standards (IFRS) for filing public financial...

Q: On April 1, 20X1, Mills Company acquired equipment for $

On April 1, 20X1, Mills Company acquired equipment for $125,000. The estimated useful lifeis six years, and the estimated residual value is $5,000. Mills estimates that the equipment canproduce 25,000...