Questions from Intermediate Accounting

Q: Since 1996, Nike, Inc. has had endorsement contracts with

Since 1996, Nike, Inc. has had endorsement contracts with Tiger Woods and some of the world's best known athletes. For example, Nike has been able to gain the rights to use Tiger Woods's name in adver...

Q: Gamma Corp. invested in a three-year, $ 100

Gamma Corp. invested in a three-year, $ 100 face value 6% bond, paying $ 105.55. At this price, the bond will yield a 4% return. Interest is payable annually. (a) Prepare a bond premiun1 amortization...

Q: At the beginning of 2014, Kao Company, a small private

At the beginning of 2014, Kao Company, a small private company, acquired a mine for $850,000. Of this amount, $100,000 was allocated to the land value and the remaining portion to the minerals in the...

Q: The following information relates to Cortez Corp. for 2014: net

The following information relates to Cortez Corp. for 2014: net income of $672,683; unrealized loss of $20,830 related to investments accounted for at fair value through other comprehensive income dur...

Q: Rotterdam Corporation's pre-tax accounting income of $725,000

Rotterdam Corporation's pre-tax accounting income of $725,000 for the year 2014 included the following items: Amortization of identifiable intangibles $147,000 Depreciation of building 115...

Q: Net income figures for Belgian Ltd. are as follows:

Net income figures for Belgian Ltd. are as follows: 2010 ………………………………. $75,000 2011 ………………………………. $53,000 2012 ………………………………. $84,000 2013 ………………………………. $87,000 2014 ………………………………. $69,000 Future income...

Q: Aswan Corporation is interested in acquiring Richmond Plastics Limited. Richmond has

Aswan Corporation is interested in acquiring Richmond Plastics Limited. Richmond has determined that its excess earnings have averaged approximately $17 5,000 and feels that such an amount should be c...

Q: As the president of Victoria Recording Corp., you are considering purchasing

As the president of Victoria Recording Corp., you are considering purchasing Moose Jaw CD Corp., whose statement of financial position is summarized as follows: Current assets $400,000 Plant...

Q: Louvre Inc. bought a business that is expected to give a

Louvre Inc. bought a business that is expected to give a 25% annual rate of return on the investment. Of the total amount paid for the business, $75,000 was deemed to be goodwill, and the rest was att...

Q: The following is a list of items that could be included in

The following is a list of items that could be included in the intangible assets section of the statement of financial position: 1. An investment in a subsidiary company 2. Timberland 3. The cost of a...