Questions from Intermediate Accounting


Q: The following independent situations describe facts concerning the ownership of various assets

The following independent situations describe facts concerning the ownership of various assets. (a) Dickenton Company purchased a tooling machine in 1998 for $85,000. The machine was being depreciated...

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Q: Oakeson Company is a manufacturing firm. Work-in-process

Oakeson Company is a manufacturing firm. Work-in-process and finished goods inventories for December 31, 2013, and December 31, 2012, follow: Depreciation is a major portion of Oakesonâ€&...

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Q: Deedle Company purchased four convenience store buildings on January 1, 2007

Deedle Company purchased four convenience store buildings on January 1, 2007, for a total of $13,000,000. The buildings have been depreciated using the straight-line method with a 20-year useful life...

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Q: JJS Corporation purchased a building on January 1, 2009, for

JJS Corporation purchased a building on January 1, 2009, for a total of $12,000,000. The building has been depreciated using the straight-line method with a 20-year useful life and no residual value....

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Q: What is the recommended accounting treatment for bond restructurings effected as

What is the recommended accounting treatment for bond restructurings effected as (a) An asset swap? (b) An equity swap? (c) A modification of terms?

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Q: On January 3, 2005, Merris Company spent $89,

On January 3, 2005, Merris Company spent $89,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. At the beginning of 2009, the compa...

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Q: On December 31, 2012, Magily Company acquired the following three

On December 31, 2012, Magily Company acquired the following three intangible assets: (a) A trademark for $30,000. The trademark has seven years remaining in its legal life. It is anticipated that the...

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Q: A review of the books of Lakeshore Electric Co. disclosed that

A review of the books of Lakeshore Electric Co. disclosed that there were five transactions involving gains and losses on the exchange of fixed assets. The transactions were recorded as indicated in t...

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Q: Wild Expansion Co. acquired the following assets in exchange for various

Wild Expansion Co. acquired the following assets in exchange for various nonmonetary assets. 2013 Mar. 15 Acquired from another company a large lathe in exchange for three small lathes. The small lath...

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Q: Information pertaining to Hedlund Corporation’s property, plant, and equipment for

Information pertaining to Hedlund Corporation’s property, plant, and equipment for 2013 follows. The salvage values of the depreciable assets are immaterial. Depreciation is comput...

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