2.99 See Answer

Question: Under the fair value enterprise method and


Under the fair value enterprise method and when using the implied value approach, consolidated goodwill is determined by inference. Describe how this is achieved, and comment on its shortcomings.


> To transfer into a particular technical department, a company requires an employee to pass a screening test. A maximum of 3 attempts are allowed at 6-month intervals between trials. From past records it is found that 40% pass on the first trial; of those

> An automobile manufacturer produces 37% of its cars at plant A. If 5% of the cars manufactured at plant A have defective emission control devices, what is the probability that one of this manufacturer’s cars was manufactured at plant A and has a defectiv

> Show that P(A|B) = 1 if B is a subset of A and P(B) ∙ 0.

> A circular spinner is divided into 15 sectors of equal area: 6 red sectors, 5 blue, 3 yellow, and 1 green. , consider the experiment of spinning the spinner once. Find the probability that the spinner lands on: Purple.

> Show that P(A|B) + P(A′|B) = 1.

> Show that if A and B are events with nonzero probabilities in a sample space S, and either P(A|B) = P(A) or P(B|A) = P(B), then events A and B are independent.

> Ann and Barbara are playing a tennis match. The first player to win 2 sets wins the match. For any given set, the probability that Ann wins that set is 2/ 3. Find the probability that (A) Ann wins the match. (B) 3 sets are played. (C) The player who w

> For the experiment in Problem 71, what is the probability that no white balls are drawn? Data from problem71: A box contains 2 red, 3 white, and 4 green balls. Two balls are drawn out of the box in succession without replacement. What is the probability

> Discuss the validity of each statement. If the statement is always true, explain why. If not, give a counterexample.

> Discuss the validity of each statement. If the statement is always true, explain why. If not, give a counterexample.

> Discuss the validity of each statement. If the statement is always true, explain why. If not, give a counterexample.

> Discuss the validity of each statement. If the statement is always true, explain why. If not, give a counter example.

> Refer to the following experiment: 2 balls are drawn in succession out of a box containing 2 red and 5 white balls. Let Ri be the event that the ith ball is red, and let Wi be the event that the ith ball is white. Find the probability that both balls wer

> Refer to the following experiment: 2 balls are drawn in succession out of a box containing 2 red and 5 white balls. Let Ri be the event that the ith ball is red, and let Wi be the event that the ith ball is white. Find the probability that the second bal

> Refer to the Venn diagram below for events A and B in an equally likely sample space S. Find each of the indicated probabilities.

> that at least 2 heads turn up, and let B be the event that all the coins turn up the same. Test A and B for independence if (A) 2 coins are tossed. (B) 3 coins are tossed.

> A card is drawn at random from a standard 52-card deck. Events M and N are M = the drawn card is a diamond. N = the drawn card is even 1face cards are not valued2. (A) Find P(N| M). (B) Test M and N for independence.

> Two cards are drawn in succession from a standard 52-card deck. What is the probability that both cards are red (A) If the cards are drawn without replacement? (B) If the cards are drawn with replacement?

> In 2 throws of a fair die, what is the probability that you will get at least 5 on each throw? At least 5 on the first or second throw?

> For each pair of events (see Problem 49), discuss whether they are independent and whether they are mutually exclusive. (A) E1 and E3 (B) E3 and E4 Data from problem 49: For each pair of events, discuss whether they are independent and whether they ar

> Compute the indicated probabilities in Problems 47 and 48 by referring to the following probability tree:

> Repeat Problem 45 with the following events: E = pointer lands on an odd number F = pointer lands on a prime number Compute the indicated probabilities in Problems 47 and 48 by referring to the following probability tree: Data from problem 45: A pointer

> A fair die is rolled 5 times. (A) What is the probability of getting a 6 on the 5th roll, given that a 6 turned up on the preceding 4 rolls? (B) What is the probability that the same number turns up every time?

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F test each pair of events for independence. D and F

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F test each pair of events for independence. C AND F

> A circular spinner is divided into 15 sectors of equal area: 6 red sectors, 5 blue, 3 yellow, and 1 green. , consider the experiment of spinning the spinner once. Find the probability that the spinner lands on: Yellow,red, or green.

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F Test each pair of events for independence. B and E

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F Test each pair of events for independence. A and E

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F compute each probability using formula (1) on page 423 and appropriate table values. P(B|B)

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F compute each probability using formula (1) on page 423 and appropriate table values. P(E|A)

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F Compute each probability using formula (1) on page 423 and appropriate table values P(E|C)

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F Compute each probability using formula (1) on page 423 and appropriate table values. P(C|E)

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F Find each probability directly from the table.

> Use the table below. Events A, B, and C are mutually exclusive; so are D, E, and F Find each probability directly from the table. P (E)

> Find the conditional probability, in a single roll of two fair dice, that. At least one die is a six, given that the sum is odd.

> Find the conditional probability, in a single roll of two fair dice, that. The sum is odd, given that at least one die is a six.

> Refer to the Venn diagram below for events A and B in an equally likely sample space S. Find each of the indicated probabilities.

> Without using a calculator, determine which event, E or F, is more likely to occur.

> Mega Communications Inc. (MCI) is a Canadian-owned public company operating throughout North America. Its core business is communications media, including newspapers, radio, television, and cable. The company’s year-end is December 31. You, a CPA, have r

> Nova Mine Engineering is a junior Canadian company with a variety of operating subsidiaries and other undertakings that provide mine engineering and management services in Canada and in several less-developed countries. One of these subsidiaries is activ

> Pluto Technology Venture (PTV) is an unincorporated joint operation with three current joint operators. A few other prospective investors are awaiting an opportunity to invest in PTV. PTV was organized three months ago to combine the knowledge, assets, a

> On December 31, Year 7, Pepper Company, a public company, agreed to a business combination with Salt Limited, an unrelated private company. Pepper issued 82 of its common shares for all 50 of the outstanding common shares of Salt. This transaction increa

> What is non-controlling interest, and where is it reported in the consolidated balance sheet under the identifiable net assets and fair value enterprise methods?

> Access the 2017 consolidated financial statements for Loblaw Companies Limited by going to investor relations section of the company’s website. Answer the questions below. Round percentages to one decimal point and other ratios to two decimal points. For

> Access the 2017 consolidated financial statements for Barrick Gold Corporation by going to investor relations section of the company’s website. Answer the questions below. For each question, indicate where in the financial statements you found the answer

> Access the 2017 consolidated financial statements for Goldcorp Inc. by going to the investor relations section of the company’s website. Answer the questions below. For each question, indicate where in the financial statements you found the answer and/or

> When accounting for the acquisition of a non–wholly owned subsidiary, the parent can use the fair value enterprise method or the identifiable net assets method to account for the business combination. Access the 2017 consolidated financial statements for

> Access the 2017 consolidated financial statements for Bell Canada Enterprises Inc. by going to the investor relations section of the company’s website. Answer the questions below. Round percentages to one decimal point and other ratios to two decimal poi

> Go to the website of the University of Saskatchewan (www.usask.ca/reporting). Search for the 2017 financial statements and answer the following questions for 2017. For each question, indicate where in the financial statements or annual report you found t

> Access the 2017 annual report for Manulife Financial Corporation by going to investor relations section of the company’s website. Answer the questions below. For each question, indicate where in the MD&A or consolidated financial statements you found the

> Access the 2017 consolidated financial statements for Rogers Communications Inc. by going to the investor relations section of the company’s website. Answer the questions below. For each question, indicate where in the financial statements you found the

> Access the 2017 consolidated financial statements for Onex Corporation by going to the investor relations section of the company’s website. Answer the questions below. For each question, indicate where in the financial statements you found the answer, an

> Access the 2017 consolidated financial statements for Empire Company Limited by going to the investor relations section of the company’s website. Answer the questions below. Round percentages to one decimal point and other ratios to two decimal points. F

> When accounting for the acquisition of a non–wholly owned subsidiary, the parent can use the fair value enterprise method or the identifiable net assets method to account for the business combination. Access the 2017 consolidated financial statements for

> Maurice Ltd. is a private Canadian company. It has been preparing its financial statements in accordance with IFRS but is now considering a change to ASPE. For its Year 6 financial statements, Maurice reported the following in accordance with IFRS: You

> Becker Ltd. is a private Canadian company. It has been preparing its financial statements in accordance with ASPE but is now considering a change to IFRS. For its Year 4 financial statements, Becker reported the following in accordance with ASPE: You ha

> Connor Ltd. is a large private company owned by the Connor family. It operates a manufacturing business in northern Ontario. It has applied to the ICB bank for a new loan of $100 million to expand its manufacturing facilities. You are a financial analyst

> The OPI Long Term Care Centre is an NFPO funded by government grants and private donations. It prepares its annual financial statements using the deferral method of accounting for contributions, and it uses only the operations fund to account for all act

> Paper Corp. purchased 70% of the outstanding shares of Sand Ltd. on January 1, Year 2, at a cost of $84,000. Paper has always used the equity method to account for its investments. On January 1, Year 2, Sand had common shares of $50,000 and retained earn

> Eternal Rest Limited (ERL) is a public company; its shares are traded on a stock exchange in Canada. ERL operates both funeral homes and cemeteries in Canada. Funeral services (casket, flowers, cemetery stone, prayer service) are sold on an as-needed bas

> Calof Inc. acquires 100% of the common shares of Xiyu Company on January 1, Year 4, for the following consideration: . 5,000 common shares with a market value of $275,000 . A contingent payment of $40,000 cash on January 1, Year 5 if Xiyu generates cash

> The following are the balance sheet and income statement data for two affiliated companies for Year 6: BALANCE SHEET  As at December 31, Year 6   Albeniz Bach  Cash $40,000 $21,000  Receivables 92,000 84,000  Inventories 56,000 45,000 

> The financial statements of Post Corporation and its subsidiary, Sage Company, as at December 31, Year 6, are presented below. STATEMENTS OF FINANCIAL POSITION December 31, Year 6 Additional Information . Post purchased 70% of the outstanding shares of

> Refer to Problem 3-11. All of the facts and data are the same except that in the proposed takeover, Myers Company will purchase all of the outstanding common shares of Norris Inc. Required: 1. Prepare the journal entries of Myers for each of the two pro

> Following are the financial statements of Malkin Inc., of Russia, as at December 31, Year 11: Additional Information . On January 1, Year 11, Crichton Corporation of Toronto acquired 40% of Malkin’s common shares for RUB800,000. . Rele

> On January 2, Year 4, Poplar Ltd. purchased 80% of the outstanding shares of Spruce Ltd. for $2,000,000. At that date, Spruce had common shares of $500,000 and retained earnings of $1,250,000 and accumulated depreciation of $600,000. Poplar acquired the

> Hamilton Importing Corp. (HIC) imports goods from countries around the world for sale in Canada. On December 1, Year 3, HIC purchased 11,300 watches from a foreign wholesaler for DM613,000 when the spot rate was DM1 = $0.754. The invoice called for payme

> At December 31, Year 4, Hein Company owned 90,000 ordinary shares of Jensen Company when the shareholders’ equity of Jensen was as follows: Ordinary shares (100,000 no par value shares issued and outstanding) … $800,000 Retained earnings …………………………………………

> Bagley Incorporated’s statement of financial position as at July 31, Year 4, is as follows: BAGLEY INCORPORATED  STATEMENT OF FINANCIAL POSITION  At July 31, Year 4  Carrying Amount Fair Value  Plant and equipment (net) $913,000 $1,056,000  P

> Identify three line items on each of the statement of financial position and statement of operations for a not for- profit organization that would not typically be seen on or would differ from the financial statements of a profit oriented corporation.

> Richard’s Specialty Foods Inc. (FSFI) operates over 60 shops throughout Ontario. The company was founded by Francois Richard when he opened a single shop in the city of Cornwall. This store sold prepared dinners and directed its products at customers who

> Explain whether the return on net assets would typically be better or worse under the deferral method as compared to the restricted fund method.

> Explain whether the debt-to-net assets ratio would typically be better or worse under the deferral method as compared to the restricted fund method.

> Explain whether the current ratio would typically be better or worse under the deferral method as compared to the restricted fund method.

> Explain how the return on equity for the shareholders of the parent differs depending on whether the gain from an intercompany sale of depreciable assets is an upstream transaction or a downstream transaction.

> Explain how value in use is typically determined for a cash-generating unit.

> Explain how the dollar amounts in the journal entries made by the parent company under the equity method differ depending on whether the gain from an intercompany sale of depreciable assets is an upstream transaction or a downstream transaction.

> In this era of rapidly changing technology, research and development (R&D) expenditures represent one of the most important factors in the future success of many companies. Organizations that spend too little on R&D risk being left behind by the competit

> Several years ago, the Penston Company purchased 90% of the outstanding shares of Swansan Corporation. The acquisition was made because Swansan produced a vital component used in Penston’s manufacturing process. Penston wanted to ensure an adequate suppl

> Tropical Juices Limited (Tropical) was incorporated under Canadian federal legislation two years ago to sell Citrus’s juices in Canada. Citrus Growers Cooperative (Citrus) of the United States and Bottle Juices Corporation (Bottle) of Canada each own 50

> The Sassawinni First Nation is located adjacent to a town in northern Saskatchewan. The Nation is under the jurisdiction of the federal government’s Aboriginal Affairs and Northern Development Canada, and for years has received substantial funding from t

> Briefly describe the trend in reporting of investments in equity securities over the past 15 years.

> L&M Home Health Corporation (L&M) had a checking account with Wells Fargo Bank. L&M engaged Gentner and Company, Inc. (Gentner), to provide consulting services and paid Gentner for services rendered with a check drawn on its Wells Fargo account in the am

> Eldon’s Super Fresh Stores, Inc., is a corporation engaged in the retail grocery business. William Drexler was the attorney for and the corporate secretary of Eldon’s and was also the personal attorney of Eldon Prinzing, the corporation’s president and s

> On September 2, 2015, Levine executed a mortgage bond under which she promised to pay the Mykoffs a preexisting obligation of $54,000. On October 14, 2021, the Mykoffs transferred the mortgage to Bankers Trust Co., indorsing the instrument with the words

> Sandra and Thomas McGuire entered into a purchase and sale agreement for “Becca’s Boutique” with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for $75,000, with a down payment of $10,000 and the balance of $65,000

> Kenco buys mobile homes from the factory and sells them to the consumer. Sometimes, it contracts to sell a home that the factory has not yet built. It has a virtually unlimited supply of product. On September 27, Kenco Homes, Inc., and Dale and Debi Will

> Appalachian is a coal hauling company in southern West Virginia. Appalachian purchased four new Mack trucks for off-road coal hauling. Appalachian purchased three of the trucks for $165,000 each and the fourth for $175,000. The trucks were sold to Appala

> Raymond and Sandra Duford purchased a wood- burning stove from Sears. The stove was manufactured by Preway, Inc. At trial, it was shown that Raymond had inadvertently installed the section of the chimney pipe that went through the roof upside down, and a

> Shell Oil Company leased to Flying Tiger Line a gasoline tank truck with a movable ladder for refueling certain types of aircraft. Under the terms of the lease, Flying Tiger was to maintain the equipment in safe operating order, but Shell was obligated t

> Jordan Panel Systems, Inc., ordered custom-made windows from Windows, Inc. The purchase contract provided that the windows were to be shipped properly packaged for motor freight transit and “delivered to New York City.” Windows constructed the windows ac

> James Norwood bought one hundred ninety heifers in Valentine, Nebraska, and then delivered them to Kevin Asbury in Missouri to care for them. Norwood and Asbury were merchants with regard to cattle. While in Asbury’s care, one hundred fifty of the heifer

> John P. Butler Accountancy Corporation agreed to audit the financial statements of Westside Mortgage, Inc., a mortgage company that arranged financing for real property, for the year ending December 31, 2019. On March 22, 2020, after completing the audit

> United Road Machinery Company, a dealer in heavy road equipment (including truck scales supplied by Thurman Scale Company), received a telephone call on July 21 from James Durham, an officer of Consolidated Coal Company, seeking to acquire truck scales f

> Mike Moses purchased a mobile home, including installation, from Gary Newman. Newman delivered the home to Moses’s lot. Upon inspection of the home, Moses’s fiancée found a broken window and water pipe. Moses also had not received keys to the front door.

> Home Indemnity, an insurance company, paid one of its insureds after the theft of his car. The car reappeared in another State and was sold to Michael Schrier for $4,300 by a used car dealer. The dealer promised to give Mr. Schrier a certificate of title

> Seller manufactures furnace-grade carbon black, a filler used in tires and other rubber and plastic products. Buyer was a longtime customer of Seller, purchasing three grades of carbon black for use in numerous rubber products it supplies to customers. B

> In August, Bunge Corporation, a grain dealer, and Recker, a farmer, entered into a written contract under which Recker agreed to sell to Bunge ten thousand bushels of No. 2 yellow soybeans to be grown in the United States at $3.35 per bushel. Delivery of

> Moulton Cavity & Mold, Inc., agreed to manufacture twenty-six innersole molds to be purchased by Lyn-Flex. Moulton delivered the twenty-six molds to Lyn-Flex after Lyn-Flex allegedly approved the sample molds. However, Lyn-Flex rejected the molds, claimi

> On March 17, Peckham bought a new car from Larsen Chevrolet for $16,400. During the first one and one-half months after the purchase, Peckham discovered that the car’s hood was dented, its gas tank contained no baffles, its emergency brake was inoperable

2.99

See Answer