Questions from Intermediate Accounting

Q: Da Vinci Inc. has a workforce of 400 employees. A

Da Vinci Inc. has a workforce of 400 employees. A new pension plan is negotiated on January 1, 2013, with the labor union. Based on the provisions of the pension agreement, prior service cost related...

Q: Distinguish a sales-type lease from a direct financing lease.

Distinguish a sales-type lease from a direct financing lease.

Q: Osvaldo Awning Co. has prior service cost of $1,

Osvaldo Awning Co. has prior service cost of $1,262,000 arising from a pension plan amendment. The board of directors decided to amortize this cost over the average remaining service period for its 45...

Q: Under what circumstances are the minimum lease payments for the lessee different

Under what circumstances are the minimum lease payments for the lessee different from those of the lessor?

Q: How does the recognition of an asset retirement obligation impact periodic depreciation

How does the recognition of an asset retirement obligation impact periodic depreciation expense? Interest expense?

Q: Longlee Electrical Company maintains a fund to cover its pension plan.

Longlee Electrical Company maintains a fund to cover its pension plan. The following data relate to the fund for 2013: Compute the 2013 actual return on the pension fund for Longlee Electrical.

Q: Why is the principal portion of a lease receipt of a financing

Why is the principal portion of a lease receipt of a financing lease treated as an investment inflow on the lessor’s books while the principal portion of a lease payment is treated as a financial cash...

Q: During Year 1 (the first year of the company’s existence),

During Year 1 (the first year of the company’s existence), employees of the company earned vacation days as follows: (1) Make the journal entry necessary at the end of Year 1 to re...

Q: What are the principal advantages to a lessor in leasing rather than

What are the principal advantages to a lessor in leasing rather than selling property?

Q: Rasband Photography has a pension plan covering its 100 employees. Rasband

Rasband Photography has a pension plan covering its 100 employees. Rasband anticipates an 11% return on its pension fund. The fund trustee furnishes Rasband with the following information relating to...