12 hours ? and anwer easy

Project Description:

do the question then say if you agree or disagree to the other two answers and why do both not just one

two question complete the question first
4 answers you can agree to or disagree too

week 1-1
a. p12-13:

1. what criteria’s should miller’s management apply under the equity method, to account for the investment in the marlon company (spiceland, sepe, & nelson, 2011, p. 683)?

the management needs to consider the life of the stocks while in the hands of the miller company. 1. the purchase. 2. the revenue 3. periods of the holding the investment and 4. selling of the investment (spiceland, sepe, & nelson, 2011). all of these criteria’s need to be recognized and reported according to the internal financial reporting standards (ifrs) (spiceland, sepe, & nelson, 2011, p. 620).
miller owns 1 of 6 million stocks of marlon making this 20% influence

2. where should the investment amounts be accounted for, when using the equity method, while ignoring taxes (spiceland, sepe, & nelson, 2011)?

a) 1. income statement
2. balance sheet
3. statement of cash flows

the answer is c. “fair value of investment shares at the end of the reporting period is not reported when using the equity method. it is reported at its original cost increasing the investor’s shares of the investee’s net income (spiceland, sepe, & nelson, 2011, p. 649).”
using the statement of cash flows, the sale is reported as an in/out flow of cash (spiceland, sepe, & nelson, 2011, p. 650).

spiceland, sepe, & nelson. (2011). intermediate accounting e6. new york: mcgraw/hill.


requirement 1
miller’s management should decide whether it has the ability to exercise significant influence over operating and financial policies of the marlon company. ability to exercise significant influence is presumed for investments of 20 percent or more of voting stock and presumed not to exist for investments of less than 20 percent, other things being equal. evidence to the contrary should be considered, including participation on the board of directors, technological dependency, material inter company transactions, or interchange of managerial personnel.

requirement 2
a) income statement:

investment revenue ($12 million x 1/6) $2.0

patent amortization adjustment ($4 million* ÷ 10) (.4)

*([$24 million] x 1/6])

b) balance sheet

investment in marlon company

($19 million + 2 million – 1 million – 0.4 million) $19.6

c) statement of cash flows:

$19 million cash outflow from investing activities, and $1 million cash inflow (dividends) among operating activities.if marlon uses the indirect method to report its operating cash flows, it would need an adjustment of ($0.6) to get from the $1.6 included as investment revenue in net income to the $1 of cash actually received in dividends and needing to be shown in cash from operations.

week 1-2

judgment case 13-9

should valleck report a liability along with the note and should anything be added to the disclosure note for full disclosure (spiceland, sepe, & nelson, 2011, p. 740)?

the liability should be reported. a loss contingency is accrued and reported when it is probable that a loss will accrue and the amount of the loss can be established or estimated (spiceland, sepe, & nelson, 2011, p. 706). the company has made a settlement agreement with the epa.

since valleck knows the amount for the settlement the liability has accrued and a disclosure note is to be accompanied by it (spiceland, sepe, & nelson, 2011, p. 708, graph 13-10).

spiceland, sepe, & nelson. (2011). intermediate accounting e6. new york: mcgraw/hill.

judgment case 13-9

this is a loss contingency. valleck can use the information from the february negotiations (occurring after the end of the year) in determining appropriate disclosure. the cause for the suit existed at the end of the year. valleck should accrue both the $190,000 compliance cost and the $205,000 penalty because an agreement has been reached making the loss probable and the amount at least reasonably estimable. these are the two conditions that require accrual of a loss contingency.
Skills Required:
Project Stats:

Price Type: Negotiable

Total Proposals: 11
1 Current viewersl
21 Total views
Project posted by:


Proposals Reputation Price offered