Questions from Intermediate Accounting


Q: Mariah Corporation is constructing a new wind power-generating facility.

Mariah Corporation is constructing a new wind power-generating facility. Construction began on January 2 and was completed on December 31 of the current year. Mariah made the following expenditures du...

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Q: IFRS. Repeat BE11-5 assuming that Mariah Corporation reports under

IFRS. Repeat BE11-5 assuming that Mariah Corporation reports under IFRS. Data from BE11-5:

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Q: Circle City Transportation made the following expenditures for its fleet during the

Circle City Transportation made the following expenditures for its fleet during the current year: oil changes, $2,000; filter changes, $5,000; tire rotations, $3,000; engine overhauls, $15,000; and re...

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Q: Flowers Corp. owns a delivery truck it acquired for $57

Flowers Corp. owns a delivery truck it acquired for $57,000 last year. During the current year, it added shelving, costing $2,800, to the truck to expand its delivery capacity. It also purchased a new...

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Q: Hermit Associates acquired a machine on January 1 at a cost of

Hermit Associates acquired a machine on January 1 at a cost of $250,000. Hermit estimates that the machine has a useful life of 10 years and a $50,000 residual value. Compute the depreciation expense...

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Q: Although U.S. GAAP allows LIFO inventory costing, IFRS

Although U.S. GAAP allows LIFO inventory costing, IFRS does not. Read paragraphs BC9 through BC21 of IASC, International Accounting Standard 2, “Inventories.” a. Why did the IASB decide not to allow...

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Q: Almonzo’s Flower Box, Inc. operates a floral delivery service.

Almonzo’s Flower Box, Inc. operates a floral delivery service. The company has three delivery trucks. It recently signed a contract to make deliveries for two local florists. The delivery route for on...

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Q: IFRS. Fillepeel Manufacturing, Inc., an IFRS reporter, has

IFRS. Fillepeel Manufacturing, Inc., an IFRS reporter, has only one plant asset used in production. The asset had a cost of $500,000 and was depreciated for 2 full years since the date of acquisition....

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Q: On January 1, Newman acquired a 30% interest in the

On January 1, Newman acquired a 30% interest in the common shares of MultiGram Entertainment at a cost of $4,295,000. During the year, MultiGram reported a net loss of $630,000 and paid no dividends....

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Q: Natale Enterprises, a major real estate developer, recently accepted a

Natale Enterprises, a major real estate developer, recently accepted a $10,000,000, 5-year, 2% note receivable in exchange for products sold. Interest is paid annually. The current market rate of inte...

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