Questions from Intermediate Accounting

Q: Weekly Corp., a December 31 yearend company that applies IFRS,

Weekly Corp., a December 31 yearend company that applies IFRS, acquired an investment of 1,000 shares of Credence Corp. in mid-2013 for $29,850. Between significant volatility in the markets and in th...

Q: On January 1, 2017, Kenn Corp. purchased at par

On January 1, 2017, Kenn Corp. purchased at par 10% bonds having a maturity value of $300,000. They are dated January 1, 2017, and mature on January 1, 2022, with interest receivable on December 31 of...

Q: Access the financial statements of BHP Billiton plc for the company’s year

Access the financial statements of BHP Billiton plc for the company’s year ended June 30, 2014. Also access the financial statements of Newfield Exploration Company for the company’s year ended Decemb...

Q: Holmes, Inc. purchased 30% of Nadal Corporation’s 30,

Holmes, Inc. purchased 30% of Nadal Corporation’s 30,000 outstanding common shares at a cost of $15 per share on January 3, 2017. The purchase price of $15 per share was based solely on the book value...

Q: Fox Ltd. invested $1 million in Gloven Corp. early

Fox Ltd. invested $1 million in Gloven Corp. early in the current year, receiving 25% of its outstanding shares. At the time of the purchase, Gloven Corp. had a carrying amount of $3.2 million. Gloven...

Q: Harnish Inc. acquired 25% of the outstanding common shares of

Harnish Inc. acquired 25% of the outstanding common shares of Gregson Inc. on December 31, 2016. The purchase price was $1,250,000 for 62,500 shares, and is equal to 25% of Gregson’s carrying amount....

Q: On January 1, 2017, Rae Corporation purchased 30% of

On January 1, 2017, Rae Corporation purchased 30% of the common shares of Martz Limited for $196,000. Martz Limited shares are not traded in an active market. The carrying amount of Martz’s net assets...

Q: The following are two independent situations. Situation 1: Lauren

The following are two independent situations. Situation 1: Lauren Inc. received dividends from its common share investments during the year ended December 31, 2017, as follows: • A cash dividend of $1...

Q: On January 3, 2017, Mego Limited purchased 3,000

On January 3, 2017, Mego Limited purchased 3,000 (30%) of the common shares of Sonja Corp. for $438,000. The following information is provided about the identifiable assets and liabilities of Sonja at...

Q: In early January 2017, Chi Inc., a private enterprise that

In early January 2017, Chi Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $410,000. Chi was now able to exercise considerable influence in decision...