Questions from Intermediate Accounting

Q: Programming for Kids Ltd. decided that it needed to update its

Programming for Kids Ltd. decided that it needed to update its computer programs for its supplier relationships. It purchased an off-the-shelf program and modified it internally to link it to Programm...

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, assuming IFRS was used to prepare financial statements. Assume that any items that may qualify for capitalization...

Q: Sweet Tooth, Inc., a private company that applies ASPE,

Sweet Tooth, Inc., a private company that applies ASPE, incurred $15,000 in materials and $12,000 in direct labour costs between January and March 2017 to develop a new product. In May 2017, the crite...

Q: Extensible business reporting language (XBRL) has been under development and

Extensible business reporting language (XBRL) has been under development and promotion for many years. Because of its potential for effective and efficient analysis of financial and other reports, XBR...

Q: Real Estate Investment Trust (RE) was created to hold hotel

Real Estate Investment Trust (RE) was created to hold hotel properties. RE currently holds 15 luxury and first-class hotels in Europe. The entity is structured as an investment trust, which means that...

Q: Find it Gold Inc. (FGI) was created in 2008

Find it Gold Inc. (FGI) was created in 2008 and is 25% owned by Find it Mining Corporation (FMC). FGI’s shares trade on the local exchange and its objective is to become a substantial low-cost mineral...

Q: Save the Trees (STT) is a not-for-

Save the Trees (STT) is a not-for-profit organization whose mandate is to keep our cities green by planting and looking after trees. STT is primarily funded by government grants and must comply with a...

Q: Rouge Valley Golf and Health Club (RVGH) is a public

Rouge Valley Golf and Health Club (RVGH) is a public company that operates eight clubs in a large city and offers one-year memberships. Membership provides members with access to golf and the fitness...

Q: In the late 1990s, CIBC helped Enron Corporation structure 34 “

In the late 1990s, CIBC helped Enron Corporation structure 34 “loans” that appeared in the financial statements as cash proceeds from sales of assets. Enron subsequently went bankrupt in 2001 and left...

Q: Green Earth Corp. has capitalized software costs of $450,

Green Earth Corp. has capitalized software costs of $450,000 on a product to be sold externally. During its first year, sales of this product totaled $195,000. Green Earth expects to earn $1,250,000 i...