Questions from Intermediate Accounting

Q: The following information is available about Kao Corp.’s investments at

The following information is available about Kao Corp.’s investments at December 31, 2017. This is the first year Kao has purchased securities for investment purposes. Assume that...

Q: Access the financial statements of Brookfield Asset Management Inc. for the

Access the financial statements of Brookfield Asset Management Inc. for the company’s year ended December 31, 2014. These are included at the end of the book. Review the information that is provided a...

Q: Arantxa Corporation made the following purchases of investments during 2017, the

Arantxa Corporation made the following purchases of investments during 2017, the first year in which Arantxa invested in equity securities: 1. On January 15, purchased 9,000 shares of Nirmala Corp.’s...

Q: On January 1, 2016, Hi and Lois Company purchased 12

On January 1, 2016, Hi and Lois Company purchased 12% bonds having a maturity value of $300,000 for $322,744.72. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2016, and...

Q: Assume the same information as in E9-12, except that

Assume the same information as in E9-12, except that the bonds are carried at FV-OCI. The fair value of the bonds at December 31 of each year-end is as follows: Instructions: (a) Prepare the journal...

Q: At December 31, 2017, the equity investments of Wang Inc

At December 31, 2017, the equity investments of Wang Inc. that were accounted for using the FV-OCI model without recycling (application of IFRS 9) were as follows: Because of a change in relationshi...

Q: Niger Corp. provided you with the following information about its investment

Niger Corp. provided you with the following information about its investment in Fahad Corp. shares purchased in May 2017 and accounted for using the FV-OCI method: Cost…………………………………………………………….$ 39,90...

Q: In early 2017, for the first time, HTSM Corp.

In early 2017, for the first time, HTSM Corp. invested in the common shares of another Canadian company. It acquired 5,000 shares of Toronto Stock Exchange–traded Bayscape Ltd. at a cost of $68,750. B...

Q: Tsui Corporation owns corporate bonds at December 31, 2017, accounted

Tsui Corporation owns corporate bonds at December 31, 2017, accounted for using the amortized cost model. These bonds have a par value of $800,000 and an amortized cost of $788,000. After an impairmen...

Q: On January 1, 2015, Mamood Ltd. paid $322

On January 1, 2015, Mamood Ltd. paid $322,744.44 for 12% bonds of Variation Ltd. with a maturity value of $300,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2015,...