Questions from Intermediate Accounting


Q: Refer to the situation described in P 19–2. Assume

Refer to the situation described in P 19–2. Assume Pastner measures the fair value of all options on January 1, 2021, to be $4.50 per option using a single weighted-average expected...

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Q: Assume the same facts as in BE 12–18, but

Assume the same facts as in BE 12–18, but that LED does not plan to sell the investment and does not think it is more likely than not that it will have to sell the investment before fair value recover...

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Q: Refer to the situation described in P 19–2. Assume

Refer to the situation described in P 19–2. Assume Pastner prepares its financial statements using International Financial Reporting Standards (IFRS). Required: Would your responses...

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Q: Walters Audio Visual, Inc., offers a stock option plan to

Walters Audio Visual, Inc., offers a stock option plan to its regional managers. On January 1, 2021, 40 million options were granted for 40 million $1 par common shares. The exercise price is the mark...

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Q: JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are

JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options...

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Q: LCI Cable Company grants 1 million performance stock options to key executives

LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 1 million of LCI $1 par common shares, subject to the achie...

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Q: On December 31, 2020, Ainsworth, Inc., had 600

On December 31, 2020, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2...

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Q: Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported

Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. At December 31, 2018, paid-in capital con...

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Q: The Cecil-Booker Vending Company changed its method of valuing inventory

The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2021. At December 31, 2020, inventories were $120,000...

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Q: You have been hired as the new controller for the Ralston Company

You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2021, you discover the following errors related to the 2019 and 2020 financial statements: a. In...

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