Question: Ramirez Company has an investment in 6%,

> The statement of income of Kneale Transport Inc. for the year ended December 31, 2020, reported the following condensed information: Kneale's statement of financial position included the following comparative data at December 31: Additional information:

> A comparative statement of financial position for Carmichael Industries Inc. follows: Additional information: 1. Net income for the fiscal year ending December 31, 2020, was $129,000. 2. Cash dividends of $60,000 were declared and paid. Dividends paid ar

> It is February 2021 and Janix Corporation is preparing to issue financial statements for the year ended December 31, 2020. To prepare financial statements and related disclosures that are faithfully representative, Janix is reviewing the following events

> Redo the analysis using Excel functions for an annuity due. Will the conclusion reached be the same as in P3.4? Assume the same information as in P3.4.

> The current assets and current liabilities sections of the statement of financial position of Agin court Corp. are as follows: The following errors have been discovered in the corporation's accounting: 1. January 2021 cash disbursements that were entered

> Selected accounts follow of Aramis Limited at December 31, 2020: The following additional information is available: 1. Inventory is valued at the lower of cost and net realizable value using FIFO. 2. Equipment is recorded at cost. Accumulated depreciatio

> Lujie Xie is the controller of Lincoln Corporation and is responsible for the preparation of the year-end financial statements on December 31, 2020. Lincoln prepares financial statements in accordance with ASPE. The following transactions occurred during

> The trial balance of Zhang Ltd. At December 31, 2020, follows: Instructions a. Prepare a classified statement of financial position as at December 31, 2020. Ignore income taxes. b. Is there any situation where it would make more sense to have a statement

> Shannonrock Racing Inc. (SR) is a promoter and sponsor of motorsport activities. It is privately owned. The owner is looking to expand and has approached the local bank,which has agreed to accept financial statements prepared in accordance with ASPE. The

> In the late 1990s, CIBC helped Enron Corporation structure 34 "loans" that appeared in the financial statements as cash proceeds from sales of assets. Enron subsequently went bankrupt in 2001 and left many unhappy investors and creditors with billions of

> Real Estate Investment Trust (RE) was created to hold hotel properties. RE currently holds 15 luxury and first-class hotels in Europe. The entity is structured as an investment trust, which means that the trust does not pay income taxes because it distri

> Findit Gold Inc. (FGI) was created in 2012 and is 25% owned by Findit Mining Corporation (FMC). FGI's shares trade on the local exchange and its objective is to become a substantial low-cost mineral producer in developing countries. FMC provided substant

> TELUS Corporation is one of Canada's largest telecommunications companies and provides both products and services. Its shares are traded on the Toronto and New York stock exchanges, and its credit facilities contain certain covenants relating to the amou

> The Blue Collar Corporation had income from continuing operations of $12.6 million in 2020. During 2020, it disposed of its restaurant division at a loss of $89,000 (net of tax of $38,000). Before the disposal, the division operated at a loss of $315,000

> Rouge Valley Golf and Health Club (RVGH) is a public company that operates eight clubs in a large city and offers one-year memberships. Membership gives members access to golf and the fitness centre including fitness classes. The members may use any of t

> Towers Inc. (TI) is a leader in delivering communications technology that powers global commerce and secures the world's most critical information. Its shares trade on the Canadian and U.S. national stock exchanges. The company had been experiencing unpr

> Environmental Inc. operates in Canada and the United States. Its basic business is high-temperature treatment services for contaminated soil. In its 2020 financial statements, the company had a loss of $9.3 million (and an accumulated deficit of $43.7 mi

> Verity Retail Limited was a private company that experienced cash flow difficulties and hired new management to turn the company around. The company then went public and the shares sold at $15 per share. Within months, however, the share price plummeted

> Oil Company Limited (OCL) is in the oil and gas business and operates internationally. The company is public and lists on the National Stock Exchange. In the past two years, oil prices have been declining significantly. The company's Canadian operations

> Branson Restaurants Limited is currently reviewing its financial operations for the past year. Specifically, it is looking to determine what is happening with one of its restaurants (which it owns - including the land). The following summary gives data a

> Bradford Construction Ltd. submitted a $14.5-million sealed bid for a fixed-price roads contract with the local municipality. Historically, Bradford is awarded 20% of the contracts on which it submits sealed bids. Using the three-step analysis for determ

> The Sarbanes-Oxley Act was enacted to combat fraud and curb poor reporting practices. What are some key provisions of this legislation? Are these provisions in effect in Canada?

> What are the sources of pressure that change and influence the development of accounting principles and standards?

> Ethics Refer to the information for Bradford Construction Ltd. in BE2.5. Assume that the sealed bid for the road contract was submitted on December 28, 2020, that Bradford has a calendar year end, and that the annual financial statements are issued in la

> Use the information in BE4.12 to prepare a multiple-step income statement for Sierra Corporation, showing expenses by function. (b) Assume the average market price for the common shares is $66. What is Sierra's price-earnings ratio?

> Early in its 2020 fiscal year (December 31 year end), Hayes Company purchased 10,000 Kenyon Corporation common shares for $26.18 per share, plus $1,800 in brokerage commissions. These securities were accounted for at FV-OCI (with no recycling), and trans

> Trottier Ltd. has a single debt investment that it accounts for using FV-OCI recycled to net income. The carrying value of the debt investment on July 1 after the collection of interest and amortization of premium was $72,500. To date, $1,500 of unrealiz

> Gauthier Ltd. has a single investment that it accounts for using FV-OCI. The carrying value of the investment at the last reporting period was $72,500. To date, $2,500 of unrealized gains on fair value adjustments have been recorded to other comprehensiv

> Lachapelle Traders Inc. has cyclical cash flows and decided to invest some excess cash on hand by purchasing a 60-day Government of Canada treasury bill. On December 15, 2020, Lachapelle paid $99,509 for a treasury bill that has a maturity amount of $100

> Use the information in BE12.13 and assume that in January 2022, Lakeshore spends $26,000 successfully defending a patent suit. In addition, Lakeshore now feels the patent will be useful only for another seven years. Prepare the journal entries to record

> Lakeshore Corporation purchased a patent from MaFee Corp. on January 1, 2020, for $87,000. The patent had a remaining legal life of 16 years. Prepare Lakeshore's journal entries to record the 2020 patent purchase and amortization for the year rounded to

> Using the data provided in BE12.10, assume that Darrien also spent $12,500 to promote and launch the product that the manufacturing equipment is used to produce. Explain the accounting for these costs.

> Sweet Tooth Inc., a private company that applies ASPE, incurred $15,000 in materials and $12,000 in direct labor costs between January and March 2020 to develop a new product. In May 2020, the criteria required to capitalize development costs were met.

> Programming for Kids Ltd. decided that it needed to update its computer programs for its supplier relationships. It purchased an off-the-shelf program and modified it internally to link it to Programming for Kids' other programs. The following costs may

> Bountiful Industries Ltd. had one patent recorded on its books as at January 1, 2020. This patent had a book value of $365,000 and a remaining useful life of eight years. During 2020, Bountiful incurred research costs of $140,000 and brought a patent inf

> The following account balances were included in the trial balance of Reid Corporation at June 30, 2020: During 2020, Reid incurred production salary and wage costs of $710,000, consumed raw materials and other production supplies of $474,670, and had an

> Sunny Valley Inc. bought an Internet domain name by issuing a $220,000, five-year, noninterest-bearing note to Ti-Mine Corp. with an effective yield of 12%. The note is repayable in five annual payments of $44,000 made at the end of each year. Prepare th

> Azure Industries Ltd. acquired two copyrights during 2020. One copyright was on a textbook that was developed internally at a cost of $36,000. This textbook is estimated to have a useful life of three years from July 1, 2020, the date it was published. T

> Using the data from BE12.19, assume that Pipeline Corporation is a private entity. Explain how goodwill will be tested for impairment. If the unit's carrying amount (including goodwill) is $3,581,000 and its fair value is $3,474,000, determine the amount

> Using the data from BE12.19, assume that Pipeline Corporation is a public company and that the goodwill was allocated entirely to one cash-generating unit (CGU). Two years later, information about the CGU is as follows: carrying amount $3,740,000; value

> On September 1, 2020, Pipeline Corporation acquired Tunneling Limited for a cash payment of $954,000. At the time of purchase, Tunneling statement of financial position showed assets of $780,000, liabilities of $420,000, and owners' equity of $360,000. T

> Use the data provided in BE12.16, except assume that useful life is expected to be unlimited. How would your response change if Coffee Company reported under or (a) ASPE (b) IFRS?

> Use the data provided in BE12.16. How would your response change if Coffee Company were a public company reporting under IFRS?

> Coffee Company Limited has a trademark with a carrying amount of $83,750, and expected useful life of 15 years. As part of an impairment test on December 31, 2020, due to a change in customer tastes, Coffee Company gathered the following data about the t

> On December 31, 2020, Convenient Cabs Incorporated was granted 10 taxi licences by the City of Somerdale, at a cost of $1,000 per licence. It is probable that Convenient Cabs will receive the expected future economic benefits of the taxi licences. There

> Use the information from BE9.24, except that Julip Corporation is a private enterprise that applies ASPE. Prepare Julip's 2020 entries to record all transactions and events related to its significant influence investment in Krov Corporation, assuming tha

> Assume the same information as in BE3.27. (a) Describe how the vendor arrived at the amounts of the two options. (b) What would have been the equivalent cash selling price? (c) Is the risk the same to the vendor as with a cash sale? (d) What, if any, wou

> Julip Corporation purchased a 25% interest in Krov Corporation on January 2, 2020, for $1,000. At that time, the carrying amount of Krov's net assets was $3,600. Any excess of the cost of the investment over Julip's share of Krov's carrying amount can be

> The following information relates to Cortez Corp. for 2020: net income of $672,683; unrealized loss of $20,830 related to investments accounted for at FV-OCI during the year; and accumulated other comprehensive income of $37,273 on January 1, 2020. Deter

> Nair Corp. enters into a contract with a customer to build an apartment building for $1 million. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $150,000 to be paid if the building is ready for

> Talarczyk Company sold 10,000 Super Spreaders on July 1, 2020, at a total price of $1 million, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $550,000. The assurance warranties extend for a two-year

> On May 10, 2020, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full price of $2,000 on July 15, 2020. The cost of goods is $1,300. Cosmo delivers the product to Greig on June 15, 2020, and r

> Identify whether the following costs should be treated as a capital expenditure or revenue expenditure when they are incurred. a. $13,000 paid to rearrange and reinstall machinery b. $400 paid for a tune-up and oil change on a delivery truck c. $200,000

> Use the information for Valued Assets Inc. from BEl0.18. On January 5, 2021, Valued sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having used (a) the cost model, (b) the revaluation model using

> Valued Assets Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $110,000. The fair value of the building, by comparing it with transaction

> a. Briefly explain the criteria that have to be met for inventory to be recorded at an amount greater than cost. b. Briefly explain the accounting for the following inventory items under ASPE: 1. Sheep 2. Wool 3. Carpet c. Briefly explain the accounting

> Soon after December 31, 2020, the auditor of Morino Manufacturing Corp. asked the company to prepare a depreciation schedule for semitrucks that showed the additions, retirements, depreciation, and other data that affected the company's income in the fou

> Farmer Brown Industries Inc. is in the business of producing organic foods for sale to restaurants and in local markets. The company uses IFRS and has a June 30 fiscal year end. As an experiment, the company has decided to try raising organic free-range

> Bluebell Enterprises Ltd.'s records reported an inventory cost of $55,600 and a net realizable value of $54,000 at December 31, 2018. At December 31, 2019, the records indicated a cost of $68, 700 and a net realizable value of $61,625. All opening invent

> Doors Unlimited Ltd. purchases units of wood frames that have manufacturer's volume rebates from Traders Inc. The rebate requires Doors Unlimited to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $2.50

> Sunny Valley Limited produces wine. Certain vintage wines take more than one year to age. The company has borrowed funds to cover the costs of this aging process. The company meets the interest capitalization criteria under IFRS. Capitalizable interest u

> Gamers' World buys 1,000 computer game CDs from a distributor that is discontinuing those games. The purchase price for the lot is $7,500. Gamers' World will group the CDs into three price categories for resale, as follows: Determine the cost per CD fo

> Angus Enterprises Ltd. reported cost of goods sold for 2020 of $2.5 million and retained earnings of $4.0 million at December 31, 2020. Angus later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $150,000 and $50,

> Best Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major supplier to purchase raw materials at an annual cost of $1 million. At December 31, 2019, the raw materials to be purchased in 2020 have a market

> Furniture Madness Inc. recently purchased 1,000 mattresses from a supplier for its big box stores. The cost for these mattresses was $140,000, or $140 per mattress. Furniture Madness established the selling price on these mattresses at $230 each. The sto

> Delicious Foods Inc. reported inventory of $5,706 million at the end of its 2020 fiscal year and $5,310 million at the end of its 2019 fiscal year. It reported cost of goods sold of $35,350 million for the fiscal year 2020 and net sales of $54,365 millio

> Show whether the following would be considered inventory for a public company like Ford Motor Corporation. If so, show the inventory category to which that item would belong. a. Engines purchased to make the Ford F-150 b. Nuts and bolts purchased to atta

> Assume the same information as in BE3.24 except that the payments are made monthly, at the end of each month, instead of annually. What would be the monthly payments? Show calculations using (a) A financial calculator (b) Excel function PMT.

> Alpha Company signs a contract to sell the use of its patented manufacturing technology to Delta Corp for 15 years. The contract for this transaction stipulates that Delta Corp pays Alpha $18,000 at the end of each year for the use of this technology. Us

> Rolling a Special Die a special die used in a game contains one dot on one side, two dots on two sides, and three dots on three sides. If the die is rolled, determine (a) The probability of rolling two dots. (b) The odds against rolling two dots.

> Construct a set of five pieces of data in which the mode has a lower value than the median and the median has a lower value than the mean.

> The 11 members of the Henrietta Town Board must decide where to build a new post office. Their three choices are Lehigh Road (L), Erie Road (E), and Ontario Road (O). The preference table follows. 32. Determine the winner using the plurality method. 34.

> Write the statement in symbolic form. Let p: A panther has a long tail. q: A bobcat can purr. A bobcat cannot purr, but a panther has a long tail.

> Refer to Exercise 26. Instead of the previous balance method, suppose Verna’s bank uses the average daily balance method. (a) Determine Verna’s average daily balance for the billing period from September 5 to October 5. (b) Determine the finance charge t

> In Exercises 31– 40, use Table 12.8 on pages 772 and 773 to determine the percent of data specified. 32. Less than z = -0.91 34. Greater than z = 2.66 36. Between z = -2.18 and z = -1.90 38. Between z = -1.53 and z = -1.82 40. Between z = -2.71 and z = 3

> A thumbtack is dropped on a concrete floor. Assume that the thumbtack can land only point up (u) or point down (d), as shown in the figure below. If two thumbtacks are dropped, one after the other, the tree diagram at the top of next page can be used to

> Malcolm’s mean average on five exams is 81. Determine the sum of his scores.

> A person randomly selects one of the six envelopes shown below. Each envelope contains a check that the person gets to keep. Determine the person’s expectation if the checks in the envelopes are as indicated in the exercises. Four envel

> Write the statement in symbolic form. Let p: A panther has a long tail. q: A bobcat can purr. A bobcat cannot purr if and only if a panther does not have a long tail.

> When the addition of a new group and additional items to be apportioned reduces the prior apportionment of another group, the _________ paradox occurs. 4. Hamilton’s and Jefferson’s apportionment methods, favor ___________ states. 6. The apportionment me

> Average Daily Balance Method The Levys’ credit card statement shows a balance due of $1578.25 on March 23, the billing date. For the period ending April 23, they had the following transactions. (a) Determine the average daily balance f

> Assume that a person spins the pointer and is awarded the amount indicated if the pointer points to a positive number but must pay the amount indicated if the pointer points to a negative number. Determine the person’s expectation if th

> Bob’s monthly living expenses for 1 year are as follows: Determine, to the nearest cent, the (a) Mean. (b) Median. (c) Mode. (d) Midrange.

> Use a graph to represent the floor plan shown. In each graph, use the letter O to represent the outside of the building. See Example 3, page 805. 28. Floor Plan The drawing below shows the floor plan of the Sun Valley model home offered by Wubben Builder

> The 12 members of the executive committee of the Student Senate must vote for a student representative for the college board of trustees from among three candidates: Brownstein (B), Samuels (S), and Marquez (M). The preference table follows. 28. Determin

> Write the statement in symbolic form. Let p: A panther has a long tail. q: A bobcat can purr. A panther has a long tail and a bobcat can purr.

> Previous Balance Method On April 15, the billing date, Gabrielle had a balance due of $57.88 on her credit card. She is redecorating her apartment and has the following transactions. (a) Determine the finance charge on May 15, using the previous balance

> The maps of states that are in other Navy regions (see Example 2 on page 803) are shown. Represent each map as a graph where each vertex represents a state and each edge represents a common border between the states. Use the state abbreviations to label

> The salaries of 10 employees of a small company follow. $32,000 $68,000 29,000 28,000 35,000 31,000 30,000 85,000 30,000 33,000 Determine the (a) mean. (b) median. (c) mode. (d) midrange. (e) If the employees wanted to demonstrate the need for a raise, w

> In Exercises 27–34, determine the equation of the line of best fit from the data indicated in the exercise. Round both m and b to the nearest hundredth. 28. Exercise 20 30. Exercise 22 32. Exercise 24 34. Exercise 26

> If you remove any edge in a tree, it creates a(n)__________ graph. 4. A tree that is created from another graph by removing edges while still maintaining a path to each vertex is called a(n) __________ tree. 6. To determine the minimum-cost spanning tr

> Use the rack of 15 billiard balls shown. If one ball is selected at random, determine the odds in favor of it being a ball other than the 8 ball. (28). Use the rack of 15 billiard balls shown. If one ball is selected at random, determine the odds against

> (a) Represent the map as a graph. Use the letter indicated in parentheses to label vertices of the graph. (b) Determine (state yes or no) whether the graph in part (a) has an Euler path. If yes, give one such Euler path. (c) Determine (state yes or no) w

> Assume that a person spins the pointer and is awarded the amount indicated by the pointer. Determine the person’s expectation.

> Previous Balance Method On September 5, the billing date, Verna had a balance due of $567.20 on her credit card. The transactions during the following month were (a) Determine the finance charge on October 5, using the previous balance method. Assume th

> Raffle Tickets Ten thousand raffle tickets are sold for $5 each. Four prizes will be awarded: one for $5000, one for $2500, and two for $1000. Assume that the probability that any given ticket is selected for the $5000 prize is 1/10,000, the probability

> The National Football League (NFL) is considering four cities for expansion: San Antonio (S), Los Angeles (L), Honolulu (H), and Toronto (T). The 32 current owners rank the four candidates according to the following preference table. 24. Determine the wi

> One million tickets are sold for a lottery in which a single prize will be awarded. (a) If you purchase a ticket, determine your odds against winning. (b) If you purchase 10 tickets, determine your odds against winning.

> Harry’s credit card company determines his minimum monthly payment by adding all new interest to 2.5% of the outstanding principal. The credit card company charges an interest rate of 0.03164% per day. On August 21, while on vacation, Harry used his cred

> Suppose that the people of Königsberg decide to add several bridges to their city. Two such possibilities are shown. Create graphs that would represent the Königsberg bridge problem with these new bridges.