Questions from Intermediate Accounting

Q: Fong Limited purchased an asset at a cost of $45,

Fong Limited purchased an asset at a cost of $45,000 on March 1, 2017. The asset has a useful life of seven years and an estimated residual value of $3,000. For tax purposes, the asset belongs in CCA...

Q: Julip Corporation purchased a 25% interest in Krov Corporation on January

Julip Corporation purchased a 25% interest in Krov Corporation on January 2, 2017, for $1,000. At that time, the carrying amount of Krov’s net assets was $3,600. Any excess of the cost of the investme...

Q: Chong Corp. purchased a machine on July 1, 2017,

Chong Corp. purchased a machine on July 1, 2017, for $30,000. Chong paid $200 in title fees and a legal fee of $100 related to the machine. In addition, Chong paid $500 in shipping charges for deliver...

Q: Gilles Corp. purchased a piece of equipment on February 1,

Gilles Corp. purchased a piece of equipment on February 1, 2017, for $100,000. The equipment has an estimated useful life of eight years, with a residual value of $25,000, and an estimated physical li...

Q: Use the information for Odyssey Ltd. in BE11-5.

Use the information for Odyssey Ltd. in BE11-5. (a) Calculate the 2017 depreciation expense using the double declining-balance method. (b) Calculate the 2018 depreciation expense using the double-decl...

Q: se the information for Odyssey Ltd. in BE11-5.

se the information for Odyssey Ltd. in BE11-5. (a) Calculate the 2017 depreciation expense using the sum of-the-years’-digits method. (b) Calculate the 2017 depreciation expense using the sum-of-the-y...

Q: Refer to the 2014 annual report of Canadian Tire Corporation, Limited

Refer to the 2014 annual report of Canadian Tire Corporation, Limited, available at SEDAR (www.sedar.com) or the company’s website (www. canadiantire.ca). Note that the company provides a 10-year fina...

Q: Andeo Corporation purchased a truck at the beginning of 2017 for $

Andeo Corporation purchased a truck at the beginning of 2017 for $48,000. The truck is estimated to have a residual value of $3,000 and a useful life of 275,000 km. It was driven for 52,000 km in 2017...

Q: Extract Corporation, a publicly traded mining company, acquires a mine

Extract Corporation, a publicly traded mining company, acquires a mine at a cost of $500,000. Capitalized development costs total $125,000. After the mine is depleted, $75,000 will be spent to restore...

Q: Cella Corporation’s statement of financial position shows property, plant, and

Cella Corporation’s statement of financial position shows property, plant, and equipment of $100,000. The notes to its financial statements state that the amount is represented by a cost of $600,000,...