Questions from Intermediate Accounting

Q: Oliver Inc. acquired the following assets in January 2014:

Oliver Inc. acquired the following assets in January 2014: Equipment: estimated useful life, 5 years; residual value, $15,000 ……………….465,000 Building: estimated useful life, 30 years; no residual val...

Q: Bennett Corp., which began operations in January 2014, follows IFRS

Bennett Corp., which began operations in January 2014, follows IFRS and is subject to a 30% income tax rate. In 2017, the following events took place: 1. The company switched from the zero-profit meth...

Q: Comparative statement of financial position accounts of Secada Inc., which follows

Comparative statement of financial position accounts of Secada Inc., which follows IFRS, follow Additional information: Secada Inc. has adopted the policy of classifying interest paid as operating a...

Q: On January 1, 2013, Zui Corporation purchased a building and

On January 1, 2013, Zui Corporation purchased a building and equipment that had the following useful lives, residual values, and costs: Building: 40-year estimated useful life, $50,000 residual value...

Q: Rodriguez Corp. changed from the straight-line method of depreciation

Rodriguez Corp. changed from the straight-line method of depreciation on its plant assets acquired in early 2015 to the double-declining-balance method in 2017 (before finalizing its 2017 financial st...

Q: Peter M. Dell Co. purchased equipment for $510,

Peter M. Dell Co. purchased equipment for $510,000, which was estimated to have a useful life of 10 years with a residual value of $10,000 at the end of that time. Depreciation has been entered for 7...

Q: Ever since the unethical actions of some employees of Enron Corp.

Ever since the unethical actions of some employees of Enron Corp. first came to light, ethics in accounting has been in the news with increasing frequency. The unethical actions of the employees essen...

Q: In 2016, Bergeron Construction Company Ltd. applied the completed contract

In 2016, Bergeron Construction Company Ltd. applied the completed contract method of accounting for long-term construction contracts. However, in 2017, Bergeron discovered that the percentage-of-compl...

Q: Field Corp.’s controller was preparing the year-end adjusting

Field Corp.’s controller was preparing the year-end adjusting entries for the company’s year ended December 31, 2017, when the V.P. Finance called him into her office. “Jean-Pierre,” she said, “I’ve b...

Q: The following are various types of accounting changes: ______ 1

The following are various types of accounting changes: ______ 1. Change in a plant asset’s residual value ______ 2. Change due to an overstatement of inventory (in the preceding period) ______ 3. Chan...