Questions from Intermediate Accounting


Q: Delray Inc. follows IFRS and has the following amounts for

Delray Inc. follows IFRS and has the following amounts for the year ended December 31, 2020: gain on disposal of FV-NI investments (before tax), $15,000; loss from operation of discontinued division (...

See Answer

Q: Jamil Jonas is an accountant in public practice as a sole proprietor

Jamil Jonas is an accountant in public practice as a sole proprietor. Not long ago, Jamil struck a deal with his neighbor Ralph to prepare Ralph's business income tax and GST returns for 2020 in excha...

See Answer

Q: Light stone Equipment Ltd. wanted to expand into New Brunswick and

Light stone Equipment Ltd. wanted to expand into New Brunswick and was impressed by the provincial government's grant program for new industry. Once it was sure that it would qualify for the grant pro...

See Answer

Q: On March 1 2020, Russell Winery Ltd. purchased a five

On March 1 2020, Russell Winery Ltd. purchased a five-hectare commercial vineyard for $1,050,000. The total purchase price was based on appraised market values of the building, grapevines, and equipme...

See Answer

Q: Plaza Holdings Inc., a publicly listed company in Canada, ventured

Plaza Holdings Inc., a publicly listed company in Canada, ventured into construction of a mega shopping mall in Edmonton, which is rated as the largest shopping mall in North America. The company's bo...

See Answer

Q: Nevine Corporation owns and manages a small 10-store shopping centre

Nevine Corporation owns and manages a small 10-store shopping centre, which it classifies as an investment property. Nevine has a May 31 year end and initially recognized the property at its acquisiti...

See Answer

Q: HQ Ltd. purchased a used truck from Trans Auto Sales Inc

HQ Ltd. purchased a used truck from Trans Auto Sales Inc. HQ paid a $4,000 down payment and signed a note that calls for 36 payments of $1,033.34 at the end of each month. The stated rate of interest...

See Answer

Q: LEW Company purchased a machine at a price of $100,

LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in two years. a. Assuming annual compounding of interest, what rate of int...

See Answer

Q: Viavelo Inc. manufactures cycling equipment. Recently, the company's vice

Viavelo Inc. manufactures cycling equipment. Recently, the company's vice-president of operations has requested construction of a new plant to meet the increasing demand for the company's bikes. After...

See Answer

Q: Your client, Danyleyko Leasing Company, is preparing a contract to

Your client, Danyleyko Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 25 years. Danyleyko has an investment cost of $365,755 in the machine, which...

See Answer