Questions from Intermediate Accounting

Q: Use the same information from P12-5 and the following additional

Use the same information from P12-5 and the following additional information, now assuming that Green River Company is an IFRS reporter. The following are estimates of current fair values less costs t...

Q: Hampton Plc. revalues equipment with a carrying value of £715

Hampton Plc. revalues equipment with a carrying value of £715,000 to its fair value of £750,000. The original cost of the equipment was £1,000,000. Hampton uses straight-line depreciation. The equipme...

Q: Essex Plc. is revaluing equipment with a carrying value of £

Essex Plc. is revaluing equipment with a carrying value of £715,000 to its fair value of £673,000. The original cost of the equipment was £1,000,000. The equipment has a 10-year useful life and scrap...

Q: The Taurus Group sold a piece of equipment on December 30 of

The Taurus Group sold a piece of equipment on December 30 of the current year for $250,000 when the equipment’s carrying value was $290,000. Three years ago, the equipment had been revalued to $500,00...

Q: James Stores, Inc. completed the following transactions during the current

James Stores, Inc. completed the following transactions during the current year, the company’s first year of operations. James Stores has a December 31 year-end. 1. January 16: Purchased $546,000 of...

Q: Sukulo Stores, Inc. completed the following transactions during the current

Sukulo Stores, Inc. completed the following transactions during the current year, the company’s first year of operations. Sukulo Stores has a December 31 year-end. 1. September 2: Purchased $65,000 o...

Q: Smart Cookie Corporation purchased 40% of the 320,000 outstanding

Smart Cookie Corporation purchased 40% of the 320,000 outstanding shares of JT’s Fine Foods, Inc. on January 1 of the current year. Smart Cookie acquired the shares at a price of $3.20 per share. JT’s...

Q: On January 1 of the current year, Wright Oil invested $

On January 1 of the current year, Wright Oil invested $7,500,000 to construct an offshore oil platform and paid cash. As part of its offshore drilling agreement, Wright is responsible for dismantling...

Q: Dott Manufacturing retired its $6,000,000 par value

Dott Manufacturing retired its $6,000,000 par value, 7%, 10-year bonds early on February 28, 2018, for $6,720,408, including accrued interest of $70,000. The carrying value of the bonds at retirement...

Q: On January 1 of the current year, ListenUp Telecommunication invested idle

On January 1 of the current year, ListenUp Telecommunication invested idle cash of $12,500,000 in transmission towers and $9,000,000 in poles and lines to improve service to its customers. ListenUp is...