Questions from Intermediate Accounting

Q: An article in the financial press stated, “More than half

An article in the financial press stated, “More than half of software maker Comserve’s net worth is in a pile of tapes and ring-bound books. That raises some accountants’ eyebrows.” What is the profes...

Q: The plant manager of a manufacturing firm suggested in a conference of

The plant manager of a manufacturing firm suggested in a conference of the company’s executives that accountants should speed up depreciation on the machinery in the finishing department because impro...

Q: What are factors to be considered in estimating the useful life of

What are factors to be considered in estimating the useful life of an intangible asset?

Q: What should be the pattern of amortization for a limited-life

What should be the pattern of amortization for a limited-life intangible?

Q: Workman Company purchased a machine on January 2, 2012, for

Workman Company purchased a machine on January 2, 2012, for $800,000. The machine has an estimated useful life of 5 years and a salvage value of $100,000. Depreciation was computed by the 150% declini...

Q: Silverman Company purchased machinery for $162,000 on January 1

Silverman Company purchased machinery for $162,000 on January 1, 2012. It is estimated that the machinery will have a useful life of 20 years, salvage value of $15,000, production of 84,000 units, and...

Q: What are the major factors considered in determining what depreciation method to

What are the major factors considered in determining what depreciation method to use?

Q: You have been hired as a benefit consultant by Jean Honore,

You have been hired as a benefit consultant by Jean Honore, the owner of Attic Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following inf...

Q: How should the amount of interest capitalized be disclosed in the notes

How should the amount of interest capitalized be disclosed in the notes to the financial statements? How should interest revenue from temporarily invested excess funds borrowed to finance the construc...

Q: Discuss the basic accounting problem that arises in handling each of the

Discuss the basic accounting problem that arises in handling each of the following situations. (a) Assets purchased by issuance of capital stock. (b) Acquisition of plant assets by gift or donation. (...