On January 1, 2018, Biomira Inc., a Canadian company, purchased types of equipment from Biovail Corporation...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2018, Biomira Inc., a Canadian company, purchased types of equipment from Biovail Corporation based in the United States for US$1,700,000. The exchange rate at the time of purchase was US$1 = C$1.05. The December 31, 2018, the exchange rate was US$1 = C$1.02 and the average exchange rate for 2018 was US$1 = C$1.04. The equipment is being depreciated on a declining balance basis at a rate of 20%. At what amount is the depreciation expense for this equipment reported on Biomira's income statement for the year ended December 31, 2018? On January 1, 2019, Ariel Resources Ltd.. invested $150,000 for 15% of the ordinary shares of Arm Holdings plc and classified as FVTPL. Ariel accounts for this long-term investment using the cost method. Arm reported a net income of $160,000 and declared a dividend of $150,000 during 2019. At the end of 2019, the recoverable amount of Ariel's investment in Arm was estimated to be $145,000. How much income should be reported by Ariel in 2019 related to its investment in Arm? On December 31, 2018, Walmart Inc. sold some of its shares in Sarnia Ltd. for $100,000, reducing its proportion of ownership from 75% to 60%. Walmart uses the equity method to record its investment in Sarnia and the balance in the investment account on December 31, 2018, prior to the sale, was $537,000. What is the gain or loss on this ownership disposal? On January 1, 2018, Biomira Inc., a Canadian company, purchased types of equipment from Biovail Corporation based in the United States for US$1,700,000. The exchange rate at the time of purchase was US$1 = C$1.05. The December 31, 2018, the exchange rate was US$1 = C$1.02 and the average exchange rate for 2018 was US$1 = C$1.04. The equipment is being depreciated on a declining balance basis at a rate of 20%. At what amount is the depreciation expense for this equipment reported on Biomira's income statement for the year ended December 31, 2018? On January 1, 2019, Ariel Resources Ltd.. invested $150,000 for 15% of the ordinary shares of Arm Holdings plc and classified as FVTPL. Ariel accounts for this long-term investment using the cost method. Arm reported a net income of $160,000 and declared a dividend of $150,000 during 2019. At the end of 2019, the recoverable amount of Ariel's investment in Arm was estimated to be $145,000. How much income should be reported by Ariel in 2019 related to its investment in Arm? On December 31, 2018, Walmart Inc. sold some of its shares in Sarnia Ltd. for $100,000, reducing its proportion of ownership from 75% to 60%. Walmart uses the equity method to record its investment in Sarnia and the balance in the investment account on December 31, 2018, prior to the sale, was $537,000. What is the gain or loss on this ownership disposal?
Expert Answer:
Answer rating: 100% (QA)
1 Calculate the depreciation expense for the equipment on Biomiras income statement for the year ended December 31 2018 Given data Purchase price of equipment US1700000 Exchange rate at purchase US1 C... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
China Petroleum and Chemical Corporation China Petroleum and Chemical Corporation (CPCC) is one of a growing number of Chinese companies that has cross-listed its stock on foreign stock exchanges. To...
-
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown on the next page. a. Fill in the table for the...
-
Two stones are dropped from the edge of a 60-m cliff, the second stone 1.6 s after the first. How far below the cliff is the second stone when the separation between the two stones is 36 m?
-
How does risk affect the financial management of sport organizations?
-
Distinguish between direct and indirect environmental impacts of a division. Provide an example to illustrate the difference.Why is the difference important to a site manager?
-
Hebert Company reported the following information for 2011: Repaid long-term debt ............. $50,000 Paid interest on note payable ............ 1,320 Issued common stock ............... 25,000...
-
Case study: Impact of writeoff / writedown on economics Applying the economic analysis model of ATCF to evaluate the impact of writeoff/writedown on project economics. A simplified economic analysis...
-
Kelly Consulting Post-Closing Trial Balance April 30, 20Y8 Account number Debit Credit Money 11 22,100 accounts receivable 12 3,400 supplies 14 1,350 prepaid rent 15 3,200 prepaid insurance sixteen...
-
How does the process of globalization influence patterns of social stratification and contribute to the concentration of wealth and power on a global scale ?
-
Transaction: The company paid $500 on January 1 for January's rent. In the table below, show the effect of the transaction above to each of the categories below (Assets, Liabilities, Equity) and the...
-
You have been given the portfolio weights for T-Bill (WTBills) and a risky portfolio (WRisky) in a complete portfolio below. WTBills Whisky 1 0.8 0.6 0.4 0.2 0 The current T-bill rate is 1.5%. 0 0.2...
-
7. It is often suggested that K, should be changed so that (Ks) = (Ks). For example, if cos 2 Ks = cos (0-2) cos (0 + 2T) sin 0 sin (0-2) sin (0+2) 3 T then (K) = (K)-1. Show that this is true. Also,...
-
Green Trifle Bakery discovered some errors for 2020 and 2021. What would be the impact on net income for each year if the errors were left undetected? Error Ending inventory in 2020 2020 2021 was...
-
Consider an airfoil with chord length c and running distance x measured along the chord. The leading edge is located at (x/c) = 0 and the trailing edge at (x/c) = 1. The pressure coefficient...
-
Identify an emerging E-commerce platform and highlight it's features on the basis of E-commerce classification of transactions
-
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...
-
On the first day of Year 4, the city receives a painting as a gift that qualifies as a work of art. It has a 30-year life, is worth $15,000, and is being displayed at one of the local parks. The...
-
On January 1, 2011, Acme Co. is considering purchasing a 40 percent ownership interest in PHC Co., a privately held enterprise, for $700,000. PHC predicts its profit will be $185,000 in 2011,...
-
What is a contractual adjustment? How does a health care organization account for a contractual adjustment?
-
Ethyl alcohol and hexane form an azeotrope containing \(33.2 \mathrm{~mol}\) per cent ethanol at \(58.7^{\circ} \mathrm{C}\) and \(1 \mathrm{~atm}\) pressure. Determine the van Laar parameters at...
-
For the binary system \(n\)-pentanol (1)- \(n\)-hexane (2), determine the activity coefficients at \(31 \mathrm{~K}\) in an equimolar mixture. The Wilson parameters are as follows: \[ \begin{aligned}...
-
n-heptane and toluene form an ideal solution mixture. At \(373 \mathrm{~K}\), their vapour pressures are \(106 \mathrm{kPa}\) and \(74 \mathrm{kPa}\) respectively. Determine the composition of the...
Study smarter with the SolutionInn App