Questions from Intermediate Accounting

Q: As part of its stock-based compensation package, on January

As part of its stock-based compensation package, on January 1, 2021, International Electronics granted restricted stock units (RSUs) representing 50 million $1 par common shares. At exercise, holders...

Q: Magnetic-Optical Corporation offers a variety of share-based compensation

Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUs...

Q: On January 1, 2021, David Mest Communications granted restricted stock

On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated...

Q: Heidi Software Corporation provides a variety of share-based compensation plans

Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2021, that permit exe...

Q: On January 1, 2021, Adams-Meneke Corporation granted 25

On January 1, 2021, Adams-Meneke Corporation granted 25 million incentive stock options to division managers, each permitting holders to purchase one share of the company’s $1 par common shares within...

Q: Dowell Fishing Supply, Inc., sold $50,000 of

Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2021, to Bassadrome. Because of a shipping backlog, Dowell held the inventory in Dowell’s warehouse until January 12, 2022 (hav...

Q: Walters Audio Visual Inc. offers an incentive stock option plan to

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

Q: SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are

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

Q: During 2019 (its first year of operations) and 2020,

During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Fieri decided to change...

Q: For financial reporting, Clinton Poultry Farms has used the declining-

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,560,000. Its useful life was estima...