Questions from Intermediate Accounting

Q: Lee Industries Inc. and Lor Inc. enter into an agreement

Lee Industries Inc. and Lor Inc. enter into an agreement that requires Lor Inc. to build three dieselelectric engines to Lee’s specifications. Both Lee and Lor follow ASPE and have calendar year ends....

Q: Dubois Steel Corporation, as lessee, signed a lease agreement for

Dubois Steel Corporation, as lessee, signed a lease agreement for equipment for five years, beginning January 31, 2020. Annual rental payments of $41,000 are to be made at the beginning of each lease...

Q: Shikkiah Corp. (which is a private enterprise) tries to

Shikkiah Corp. (which is a private enterprise) tries to attract the most knowledgeable and creative employees it can find. To help accomplish this, the company offers a special group of technology emp...

Q: The consolidated financial statements of Deutsche Lufthansa AG for the year ended

The consolidated financial statements of Deutsche Lufthansa AG for the year ended December 31, 2017, are available in the company's 2017 annual report on the www.lufthansagroup.com website. Instruct...

Q: Under the temporary difference approach, the tax rates used for deferred

Under the temporary difference approach, the tax rates used for deferred tax calculations are those enacted at the balance sheet date, and affect how the reversal will be treated for tax purposes. I...

Q: Gaming Inc. issued a debenture bond to Karamoutz Bank to finance

Gaming Inc. issued a debenture bond to Karamoutz Bank to finance new technology it developed. The debenture was for $500,000, issued at face value, with a 10-year term and interest payable at 10%. Gam...

Q: Lanier Dairy Ltd. leases its milk cooling equipment from Green Finance

Lanier Dairy Ltd. leases its milk cooling equipment from Green Finance Corporation. Both companies use IFRS 16. The lease has the following terms. 1. The lease is dated May 30, 2020, with a lease ter...

Q: On January 1, 2020, Hunter Ltd. entered into an

On January 1, 2020, Hunter Ltd. entered into an agreement to lease a truck from Situ Ltd. Both Hunter and Situ use IFRS 16. The details of the agreement are as follows: Additional information: 1. Th...

Q: LePage Manufacturing Ltd. agrees to lease equipment to Labonté Ltée.

LePage Manufacturing Ltd. agrees to lease equipment to Labonté Ltée. on July 15, 2020. LePage follows ASPE and Labonté is a public company following IFRS 16. The following information relates to the l...

Q: Synergetics Inc. leased a new crane to Gumo Construction Inc.

Synergetics Inc. leased a new crane to Gumo Construction Inc. under a six-year, non-cancellable contract starting February 1, 2020. The lease terms require payments of $21,500 each February 1, startin...