Questions from Intermediate Accounting

Q: Pueblo Co. acquires machinery by paying $10,000 cash

Pueblo Co. acquires machinery by paying $10,000 cash and signing a $5,000, 2-year, zero-interest-bearing note payable. The note has a present value of $4,208, and Pueblo purchased a similar machine la...

Q: Last year Zeno Company recorded an impairment on an intangible asset held

Last year Zeno Company recorded an impairment on an intangible asset held for use. Recent appraisals indicate that the asset has increased in value. Should Zeno record this recovery in value?

Q: Last year, Wyeth Company recorded an impairment on an asset held

Last year, Wyeth Company recorded an impairment on an asset held for use. Recent appraisals indicate that the asset has increased in value. Should Wyeth record this recovery in value?

Q: Simon Company determines that its goodwill is impaired. It finds that

Simon Company determines that its goodwill is impaired. It finds that its implied goodwill is $360,000 and its recorded goodwill is $400,000. The fair value of its identifiable assets is $1,450,000. W...

Q: Indicate the proper accounting for the following items. (a

Indicate the proper accounting for the following items. (a) Organization costs. (b) Advertising costs. (c) Operating losses.

Q: In 2011, Austin Powers Corporation developed a new product that will

In 2011, Austin Powers Corporation developed a new product that will be marketed in 2012. In connection with the development of this product, the following costs were incurred in 2011: research and de...

Q: In what way may the use of percentage depletion violate sound accounting

In what way may the use of percentage depletion violate sound accounting theory?

Q: Target Corporation in 2010 reported net income of $2.5

Target Corporation in 2010 reported net income of $2.5 billion, net sales of $63.4 billion, and average total assets of $44.3 billion. What is Target’s asset turnover ratio? What is Target’s rate of r...

Q: What are the major characteristics of plant assets?

What are the major characteristics of plant assets?

Q: The financial statements and accompanying notes of P&G are presented

The financial statements and accompanying notes of P&G are presented in Appendix 5B or can be accessed at the book’s companion website, www.wiley.com/college/kieso. Instructions (a) Examining each it...