Questions from Intermediate Accounting

Q: For various reasons a corporation may issue warrants to purchase shares of

For various reasons a corporation may issue warrants to purchase shares of its common stock at specified prices that, depending on the circumstances, may be less than, equal to, or greater than the cu...

Q: Castleman Holdings, Inc. had the following available for-sale

Castleman Holdings, Inc. had the following available for-sale investment portfolio at January 1, 2014. During 2014, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per s...

Q: Assume the same information as E17-9 and that Steffi Graf

Assume the same information as E17-9 and that Steffi Graf Inc. reports net income in 2013 of $120,000 and in 2014 of $140,000. Total holding gains (including any realized holding gain or loss) total $...

Q: You have just started work for Warren Co. as part of

You have just started work for Warren Co. as part of the controller’s group involved in current financial reporting problems. Jane Henshaw, controller for Warren, is interested in your accounting back...

Q: Berg Company adopted a stock-option plan on November 30,

Berg Company adopted a stock-option plan on November 30, 2013, that provided that 70,000 shares of $5 par value stock be designated as available for the granting of options to officers of the corporat...

Q: Comparative balance sheet accounts of Sharpe Company are presented below.

Comparative balance sheet accounts of Sharpe Company are presented below. Additional data: 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2014. 2. Cash dividends were declared and...

Q: Mike Crane is an audit senior of a large public accounting firm

Mike Crane is an audit senior of a large public accounting firm who has just been assigned to the Frost Corporation’s annual audit engagement. Frost has been a client of Crane’s firm for many years. F...

Q: Keystone Corporation’s financial statements for the year ended December 31, 2014

Keystone Corporation’s financial statements for the year ended December 31, 2014, were authorized for issue on March 10, 2015. The following events took place early in 2015. (a) On January 10, 10,000...

Q: On March 1, 2014, Pechstein Construction Company contracted to construct

On March 1, 2014, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by Octobe...

Q: At December 31, 2014, Cascade Company had a net deferred

At December 31, 2014, Cascade Company had a net deferred tax liability of $450,000. An explanation of the items that compose this balance is as follows. In analyzing the temporary differences, you fin...