Questions from Intermediate Accounting

Q: Treasure Land Corporation incurred the following costs in 2012. Cost

Treasure Land Corporation incurred the following costs in 2012. Cost of laboratory research aimed at discovery of new knowledge …………………….…….. $120,000 Cost of testing in search for product alternative...

Q: Tanaka Company has land that cost $15,000,000

Tanaka Company has land that cost $15,000,000. Its fair value on December 31, 2012, is $20,000,000. Tanaka chooses the revaluation model to report its land. Explain how the land and its related valuat...

Q: Indicate whether the following items are capitalized or expensed in the current

Indicate whether the following items are capitalized or expensed in the current year. (a) Purchase cost of a patent from a competitor. (b) Research costs. (c) Development costs (after achieving econom...

Q: Use the information in IFRS12-6. Assume that at the

Use the information in IFRS12-6. Assume that at the end of the year following the impairment (after recording amortization expense), the estimated recoverable amount for the patent is $130,000. Prepar...

Q: Waters Corporation purchased Johnson Company 3 years ago and at that time

Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $800,000....

Q: What is the theoretical justification of the allowance method as contrasted with

What is the theoretical justification of the allowance method as contrasted with the direct write off method of accounting for bad debts?

Q: Where can authoritative IFRS guidance related to intangible assets be found?

Where can authoritative IFRS guidance related to intangible assets be found?

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: Waters Corporation purchased Johnson Company 3 years ago and at that time

Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $800,000....

Q: Capriati Corporation commenced operations in early 2012. The corporation incurred $

Capriati Corporation commenced operations in early 2012. The corporation incurred $60,000 of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formati...