Questions from Intermediate Accounting

Q: In 2016, Austin Powers Corporation developed a new product that will

In 2016, Austin Powers Corporation developed a new product that will be marketed in 2017. In connection with the development of this product, the following costs were incurred in 2016: research and de...

Q: In the extractive industries, businesses may pay dividends in excess of

In the extractive industries, businesses may pay dividends in excess of net income. What is the maximum permissible? How can this practice be justified?

Q: Machinery purchased for $60,000 by Tom Brady Co.

Machinery purchased for $60,000 by Tom Brady Co. in 2013 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5...

Q: Wal-Mart Stores, Inc. in 2014 reported net income

Wal-Mart Stores, Inc. in 2014 reported net income of $16.4 billion, net sales of $482.2 billion, and average total assets of $204.2 billion. What is Wal-Mart’s asset turnover? What is Wal-Mart’s retur...

Q: In 2017, Ghostbusters Corp. spent $420,000 for

In 2017, Ghostbusters Corp. spent $420,000 for “goodwill” visits by sales personnel to key customers. The purpose of these visits was to build a solid, friendly relationship for the future and to gain...

Q: Workman Company purchased a machine on January 2, 2017, for

Workman Company purchased a machine on January 2, 2017, 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, 2017. 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: LaTour Inc. is based in France and prepares its financial statements

LaTour Inc. is based in France and prepares its financial statements in accordance with IFRS. In 2017, it reported cost of goods sold of $578 million and average inventory of $154 million. Briefly dis...

Q: Briefly describe the valuation of a. biological assets and

Briefly describe the valuation of a. biological assets and b. agricultural produce.

Q: Dover Company began operations in 2017 and determined its ending inventory at

Dover Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below. a. Prepare the journ...