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intermediate accounting ifrs 4th edition
Intermediate Accounting IFRS Edition 2nd Edition Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield - Solutions
On January 1, 2015, Roosevelt Company purchased 12% bonds having a maturity value of \($500\),000 for \($537\),907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2015, and mature January 1, 2020, with interest receivable December 31 of each year. Roosevelt’s
On January 1, 2015, Morgan Company acquires $300,000 of Nicklaus, Inc., 9%bonds at a price of $278,384. The interest is payable each December 31, and the bonds mature December 31, 2017. The investment will provide Morgan Company a 12% yield. The bonds are classified as
Assume the same information as in E17-3 except that Roosevelt has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows.Instructions(a) Prepare the journal entry at the date of the bond purchase.(b) Prepare the journal entries to
Refer to the information in E17-3 and assume that Roosevelt elected the fair value option for this held-for-collection investment.Instructions(a) Prepare any entries necessary at December 31, 2015, assuming the fair value of the bonds is \($540\),000.(b) Prepare any entries necessary at December
Presented on page 865 is selected information related to the financial instruments of Dawson Company at December 31, 2015 (amounts in thousands). This is Dawson Company’s first year of operations.Instructions (a) Dawson elects to use the fair value option whenever possible. Assuming that
The following information is available for Kinney Company at December 31, 2015, regarding its investments.Instructions (a) Prepare the adjusting entry (if any) for 2015, assuming the investments are classified as trading.(b) Prepare the adjusting entry (if any) for 2015, assuming the investments
On December 21, 2015, Zurich Company provided you with the following information regarding its trading investments.During 2016, Carolina Co. shares were sold for €9,500. The fair value of the shares on December 31, 2016, was Stargate Corp. shares—€19,300; Vectorman Co.
At December 31, 2015, the equity investment portfolio for Wenger, Inc. is as follows.On January 20, 2016, Wenger, Inc. sold investment A for $15,300. The sale proceeds are net of brokerage fees.Instructions (a) Prepare the adjusting entry at December 31, 2015, to report the portfolio at fair
Capriati Corporation made the following cash investments during 2015, which is the first year in which Capriati invested in securities.1. On January 15, purchased 9,000 ordinary shares of Gonzalez Company at \($33.50\) per share plus commission \($1\),980.2. On April 1, purchased 5,000 ordinary
Presented below are two independent situations.Situation 1: Hatcher Cosmetics acquired 10% of the 200,000 ordinary shares of Ramirez Fashion at a total cost of \($14\) per share on March 18, 2015. On June 30, Ramirez declared and paid a \($75\),000 cash dividend.On December 31, Ramirez reported net
Swanson Company has the following trading investment portfolio on December 31, 2015.All of the investments were purchased in 2015. In 2016, Swanson completed the following investment transactions.Swanson Company’s portfolio of trading investments appeared as follows on December 31,
Chen Inc. acquired 20% of the outstanding ordinary shares of Cho Corp. on December 31, 2015. The purchase price was ¥125,000,000 for 50,000 shares.Cho Corp. declared and paid an ¥80 per share cash dividend on June 30 and on December 31, 2016. Cho reported net income of ¥73,000,000 for 2016. The
On January 1, 2015, Meredith Corporation purchased 25% of the ordinary shares of Pirates Company for £200,000. During the year, Pirates earned net income of £80,000 and paid dividends of £20,000.Instructions Prepare the entries for Meredith to record the purchase and any additional entries
Cairo Corporation has government bonds classified as held-for-collection at December 31, 2015. These bonds have a par value of \($800\),000, an amortized cost of \($800\),000, and a fair value of \($740\),000. In evaluating the bonds, Cairo determines the bonds have a \($60\),000 permanent decline
Komissarov Company has a debt investment in the bonds issued by Keune Inc. The bonds were purchased at par for €400,000 and, at the end of 2015, have a remaining life of 3 years with annual interest payments at 10%, paid at the end of each year. This debt investment is classified as
On January 2, 2015, Jones Company purchases a call option for \($300\) on Merchant ordinary shares. The call option gives Jones the option to buy 1,000 shares of Merchant at a strike price of \($50\) per share. The market price of a Merchant share is \($50\) on January 2, 2015 (the intrinsic value
On January 2, 2015, MacCloud Co. issued a 4-year, €100,000 note at 6% fixed interest, interest payable semiannually. MacCloud now wants to change the note to a variable-rate note.As a result, on January 2, 2015, MacCloud Co. enters into an interest rate swap where it agrees to receive 6% fixed
On January 2, 2015, Parton Company issues a 5-year, $10,000,000 note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is 5.8%.Parton Company decides it prefers fixed-rate financing and wants to lock in a rate of 6%. As a
Sarazan Company issues a 4-year, 7.5% fixed-rate interest only, nonprepayable£1,000,000 note payable on December 31, 2015. It decides to change the interest rate from a fixed rate to variable rate and enters into a swap agreement with M&S Corp. The swap agreement specifies that Sarazan will
On August 15, 2015, Outkast Co. invested idle cash by purchasing a call option on Counting Crows Inc. ordinary shares for \($360\). The notional value of the call option is 400 shares, and the option price is \($40\). (Market price of a Counting Crows share is \($40\).) The option expires on
Choi Golf Co. uses titanium in the production of its specialty drivers. Choi anticipates that it will need to purchase 200 ounces of titanium in October 2015, for clubs that will be shipped in the holiday shopping season. However, if the price of titanium increases, this will increase the cost to
Presented below is an amortization schedule related to Spangler Company’s 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2012, for $108,660.The following schedule presents a comparison of the amortized cost and fair value of the bonds at
On January 1, 2015, Novotna Company purchased €400,000, 8% bonds of Aguirre Co. for €369,114. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2020. Novotna Company plans to hold the bonds to collect
Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are managed to profit from changes in market interest rates.Instructions (a) Indicate whether the bonds were purchased at a discount or at a premium.(b) Prepare the
Parnevik Company has the following investments in its investment portfolio on December 31, 2015 (all investments were purchased in 2015): (1) 3,000 ordinary shares of Anderson Co. which cost \($58\),500, (2) 10,000 ordinary shares of Munter Ltd. which cost \($580\),000, and (3) 6,000 preference
Kennedy Company has the following portfolio of trading investments at December 31, 2015.On December 31, 2016, Kennedy’s portfolio of trading investments consisted of the following investments.At the end of year 2016, Kennedy Company changed the classification of its investment in Frank, Inc. to
Castleman Holdings, Inc. had the following investment portfolio at January 1, 2015.During 2015, the following transactions took place.1. On March 1, Rogers Company paid a £2 per share dividend.2. On April 30, Castleman Holdings, Inc. sold 300 shares of Chance Company for £11 per share.3. On May
Fernandez Corp. invested its excess cash in equity investments during 2015. The business model for these investments is to profit from trading on price changes.Instructions (a) As of December 31, 2015, the equity investment portfolio consisted of the following.What should be reported on
The treasurer of Miller Co. has read on the Internet that the price of Wade Inc. ordinary shares is about to take off. In order to profit from this potential development, Miller Co. purchased a call option on Wade shares on July 7, 2015, for €240. The call option is for 200 shares (notional
Johnstone Co. purchased a put option on Ewing ordinary shares on July 7, 2015, for €240. The put option is for 200 shares, and the strike price is €70. (The market price of an ordinary share of Ewing on that date is €70.) The option expires on January 31, 2016. The following data are
Warren Co. purchased a put option on Echo ordinary shares on January 7, 2015, for \($360\). The put option is for 400 shares, and the strike price is \($85\) (which equals the price of an Echo share on the purchase date). The option expires on July 31, 2015. The following data are available with
On December 31, 2015, Mercantile Corp. had a $10,000,000, 8% fixed-rate note outstanding, payable in 2 years. It decides to enter into a 2-year swap with Chicago First Bank to convert the fixed-rate debt to variable-rate debt. The terms of the swap indicate that Mercantile will receive interest at
Suzuki Jewelry Co. uses gold in the manufacture of its products. Suzuki anticipates that it will need to purchase 500 ounces of gold in October 2015, for jewelry that will be shipped for the holiday shopping season. However, if the price of gold increases, Suzuki’s cost to produce its jewelry
On November 3, 2015, Sprinkle Co. invested €200,000 in 4,000 ordinary shares of Pratt Co. Sprinkle classified this investment as non-trading equity. Sprinkle Co. is considering making a more significant investment in Pratt Co. at some point in the future but has decided to wait and see how the
Lexington Co. has the following equity investments on December 31, 2015 (its first year of operations).During 2016, Summerset Company shares were sold for \($9\),200, the difference between the \($9\),200 and the “fair value” of \($8\),800 being recorded as a “Gain on Sale of Investments.”
On July 1, 2016, Fontaine Company purchased for cash 40% of the outstanding ordinary shares of Knoblett Company. Both Fontaine Company and Knoblett Company have a December 31 year-end. Knoblett Company, whose shares are actively traded in the over-the-counter market, reported its total net income
On July 1, 2015, Selig Company purchased for cash 40% of the outstanding ordinary shares of Spoor Corporation. Both Selig and Spoor have a December 31 year-end. Spoor Corporation, whose shares are actively traded on the American Stock Exchange, paid a cash dividend on November 15, 2015, to Selig
Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively. The complete annual reports, including the notes to the financial statements, are available online.Instructions Based on the information contained in
Financial Statement Analysis Case Union Planters Union Planters is a bank holding company (that is, a corporation that owns banks). Union Planters manages \($32\) billion in assets, the largest of which is its loan portfolio of \($19\) billion. In addition to its loan portfolio, however, like other
Accounting, Analysis, and Principles Instar Company has several investments in other companies. The following information regarding these investments is available at December 31, 2015.1. Instar holds bonds issued by Dorsel Corp. The bonds have an amortized cost of \($320\),000 (which is par value)
Professional Research Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in the shares of one of its suppliers, Teton Co. Teton’s shares trade on the over-thecounter market but trading activity is quite low. Cascade plans
Professional Simulation In this simulation, you are asked to address questions related to investments. Provide responses to all parts. KWW Professional Simulation Investments Time Remaining 3 hours 20 minutes Powerpuff Corp. carries an account in its general ledger called Investments, which
On May 10, 2015, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2015. Greig agrees to pay the full contract price of €2,000 on July 15, 2015. The cost of the goods is €1,300.Cosmo delivers the product to Greig on June 15, 2015, and receives payment on July 15,
Mauer Company licenses customer-relationship software to Hedges Inc. for 3 years. In addition to providing the software, Mauer promises to perform consulting services over the life of the license to maintain operability within Hedges’ computer system. The total transaction price is £200,000.
Nair Corp. enters into a contract with a customer to build an apartment building for \($1\),000,000.The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of \($150\),000 to be paid if the building is ready for rental beginning August 1, 2015. The
Referring to the revenue arrangement in BE18-5, determine the transaction price for the contract, assuming(a) Nair is only able to estimate whether the building can be completed by August 1, 2015, or not(Nair estimates that there is a 70% chance that the building will be completed by August 1,
On January 2, 2015, Adani Inc. sells goods (cost R\($6\),000) to Geo Company in exchange for a zero-interest-bearing note with face value of R\($11\),000, with payment due in 12 months. The fair value of the goods at the date of sale is R\($10\),000. Prepare the journal entry to record this
On March 1, 2015, Parnevik Company sold goods to Goosen Inc. for €660,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of €1,062,937. The goods have an inventory cost on Parnevik’s books of €400,000. Prepare the journal entries for Parnevik on (a) March 1, 2015,
Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Telephone Sellers sells \($4\),000 of prepaid cards in January
Manual Company sells goods to Nolan Company during 2015. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If it sells up to 20,000 units, it will grant a rebate of 4%. If it sells up to 30,000 units, it will
Geraths Windows manufactures and sells custom storm windows for three-season porches.Geraths also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Geraths enters into the following
On July 10, 2015, Amodt Music sold CDs to retailers on account and recorded sales revenue of €700,000 (cost €560,000). Amodt grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2015,
On June 1, 2015, Mills Company sells \($200\),000 of shelving units to a local retailer, ShopBarb, which is planning to expand its stores in the area. Under the agreement, ShopBarb asks Mills to retain the shelving units at its factory until the new stores are ready for installation. Title passes
Talarczyk Company sold 10,000 Super-Spreaders on July 1, 2015, at a total price of €1,000,000, 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 2-year period and are estimated to cost €40,000.
Guillen, Inc. began work on a \($7\),000,000 contract in 2015 to construct an office building. Guillen uses the cost-recovery method. At December 31, 2015, the balances in certain accounts were Construction in Process \($1\),715,000, Accounts Receivable \($240\),000, and Billings on Construction in
Frozen Delight, Inc. charges an initial franchise fee of \($75\),000 for the right to operate as a franchisee of Frozen Delight. Of this amount, \($25\),000 is collected immediately. The remainder is collected in four equal annual installments of \($12\),500 each. These installments have a present
Jupiter Company sells goods to Danone Inc. on account on January 1, 2015. The goods have a sales price of €610,000 (cost €500,000). The terms of the sale are net 30. If Danone pays within 5 days, it receives a cash discount of €10,000. Past history indicates the cash discount will be
Presented below are three revenue recognition situations.(a) Grupo sells goods to MTN for \($1\),000,000, payment due at delivery.(b) Grupo sells goods on account to Grifols for \($800\),000, payment due in 30 days.(c) Grupo sells goods to Magnus for \($500\),000, payment due in two installments:
In September 2015, Gaertner Corp. commits to selling 150 of its iPhonecompatible docking stations to Better Buy Co. for R$15,000 (R$100 per product). The stations are delivered to Better Buy over the next 6 months. After 90 stations are delivered, the contract is modified and Gaertner promises to
Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2015, Tyler entered into a 3-year service contract with Walleye Tech. Walleye promises to pay \($10\),000 at the beginning of each year, which at contract inception is
Bai Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Bai will receive a payment of ¥10,000,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Bai determines it is 90% likely that the drug will gain
Aaron’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of \($100\). In addition, Aaron will receive an additional commission of \($10\) each year for as long as the policyholder does not cancel the policy. After selling the policy, Aaron does not have any
On June 3, 2015, Hunt Company sold to Ann Mount merchandise having a sales price of £8,000 (cost £5,600) with terms of 2/10, n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of £800 will be returned. An invoice totaling £120, terms n/30, was received by Mount on
Taylor Marina has 300 available slips that rent for €800 per season. Payments must be made in full at the start of the boating season, April 1, 2015. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be reserved if paid for by December 31,
Sanchez Co. enters into a contract to sell Product A and Product B on January 2, 2015, for an upfront cash payment of R\($150\),000. Product A will be delivered in 2 years (January 2, 2017) and Product B will be delivered in 5 years (January 2, 2020). Sanchez Co. allocates the R\($150\),000 to
Shaw Company sells goods that cost \($300\),000 to Ricard Company for \($410\),000 on January 2, 2015. The sales price includes an installation fee, which is valued at \($40\),000. The fair value of the goods is \($370\),000. The installation is considered a separate performance obligation and is
Crankshaft Company manufactures equipment. Crankshaft’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from \($200\),000 to \($1\),500,000 and are quoted inclusive of installation. The installation process does not
Refer to the revenue arrangement in E18-11.Instructions Repeat requirements(a) and(b) assuming Crankshaft does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation
Organic Growth Company is presently testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant to five of its largest customers the unconditional right of return to these products if not fully satisfied. The right of return extends for
Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer’s expense.Sales
Zagat Inc. enters into an agreement on March 1, 2015, to sell Werner Metal Company aluminum ingots in 2 months. As part of the agreement, Zagat also agrees to repurchase the ingots in 60 days at the original sales price of 200,000 plus 2%. (Because Zagat has an unconditional obligation to
Refer to the information in E18-24.Instructions(a) Does the accounting for capitalized costs change if the contract is for 1 year rather than 3 years? Explain.Data From E18-24Rex’s Reclaimers entered into a contract with Dan’s Demolition to manage theprocessing of recycled materials on Dan’s
The records of Mandy’s Boutique report the following data for the month of April.Instructions Compute the ending inventory by the conventional retail inventory method. Sales 95,000 Purchases (at cost) 55,000 Sales returns 2,000 Purchases (at sales price) 88,000 Markups 10,000 Purchase returns (at
The financial statements of AB InBev’s (BEL) 2012 annual report disclosed the following information.Instructions Compute AB InBev’s (a) inventory turnover and (b) average days to sell inventory for 2012. (in millions) Inventories Sales Cost of sales Net income 31 December 2012 31 December 2011
Use the information for Zhang Company from BE10-2 and BE10-3. Compute avoidable interest for Zhang Company.Data From BE10-2Data From BE10-3 BE10-2 Zhang Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,800,000 on March 1,
In 2015, Sato Corporation received a grant for ¥2 million to defray the cost of purchasing research equipment for its manufacturing facility. The total cost of the equipment is ¥10 million. Prepare the journal entry to record this transaction if Sato uses (a) the deferred revenue approach, and
Ottawa Corporation owns machinery that cost \($20\),000 when purchased on July 1, 2012. Depreciation has been recorded at a rate of \($2\),400 per year, resulting in a balance in accumulated depreciation of \($8\),400 at December 31, 2015. The machinery is sold on September 1, 2016, for
Use the information presented for Ottawa Corporation in BE10-15, but assume the machinery is sold for \($5\),200 instead of \($10\),500. Prepare journal entries to(a) update depreciation for 2016 and(b) record the sale.Data From BE10-15Ottawa Corporation owns machinery that cost \($20\),000 when
The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.(a) Money borrowed to pay building contractor (signed a note) €(275,000)(b) Payment for construction from note proceeds
Haddad Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2015. The terms of acquisition for each truck are described below.1. Truck #1 has a list price of $15,000 and is acquired for a cash payment of
Dane Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2015.Instructions Compute the total cost for each of these two types of equipment. If an item is not
Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Equipment.Instructions Determine the amounts that should be debited to Land, to Buildings, and to Equipment. Assume the benefits of capitalizing interest during construction
McPherson Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of €5,000,000 on January 1, 2015. McPherson expected to complete the building by December 31, 2015. McPherson has the following debt obligations outstanding during
On December 31, 2014, Tsang Inc. borrowed HK\($3\),000,000 at 12% payable annually to finance the construction of a new building. In 2015, the company made the following expenditures related to this building: March 1, HK\($360\),000; June 1, HK\($600\),000; July 1, HK\($1\),500,000;December 1,
On July 31, 2015, Bismarck Company engaged Duval Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2015. To help finance construction, on July 31 Bismarck issued a \($400\),000, 3-year, 12% note payable at
The following three situations involve the capitalization of interest.Situation I: On January 1, 2015, Columbia, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of R\($4\),000,000. It was estimated that it would take 3 years to complete the
Below are transactions related to Impala Company.(a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be \($81\),000.(b) 14,000 ordinary shares with a par value of \($50\) per share are issued in exchange for land and
Sterling Inc. has decided to purchase equipment from Central Industries on January 2, 2015, to expand its production capacity to meet customers’ demand for its product. Sterling issues a $900,000, 5-year, zero-interest-bearing note to Central for the new equipment when the prevailing market rate
Windsor Corporation purchased a computer on December 31, 2014, for £130,000, paying £30,000 down and agreeing to pay the balance in five equal installments of £20,000 payable each December 31 beginning in 2015. An assumed interest rate of 10% is implicit in the purchase price.Instructions(a)
Logan Industries purchased the following assets and constructed a building as well. All this was done during the current year.Assets 1 and 2: These assets were purchased as a lump sum for €104,000 cash. The following information was gathered.Asset 3: This machine was acquired by making a
Alatorre Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a
Montgomery Company purchased an electric wax melter on April 30, 2016, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.Instructions Prepare the journal entry(ies) necessary to record this exchange, assuming that the exchange (a) has
Santana Company exchanged equipment used in its manufacturing operations plus R$2,000 in cash for similar equipment used in the operations of Delaware Company. The following information pertains to the exchange.Instructions (a) Prepare the journal entries to record the exchange on the books of both
Rialto Group received a grant from the government of £100,000 to acquire£500,000 of delivery equipment on January 2, 2015. The delivery equipment has a useful life of 5 years.Rialto uses the straight-line method of depreciation. The delivery equipment has a zero residual value.Instructions (a) If
Yilmaz Company is provided a grant by the local government to purchase land for a building site. The grant is a zero-interest-bearing note for 5 years. The note is issued on January 2, 2015, for €5 million payable on January 2, 2020. Yilmaz’s incremental borrowing rate is 6%. The land is not
Accardo Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company’s plant asset book value is currently R\($800\),000, as indicated below.During the current year, the
The following transactions occurred during 2016. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straightline basis, with no estimated residual value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no
Plant assets often require expenditures subsequent to acquisition. It is important that they be accounted for properly. Any errors will affect both the statements of financial position and income statements for a number of years.Instructions For each of the following items, indicate whether the
On December 31, 2015, Mitsui Inc. has a machine with a book value of ¥940,000. The original cost and related accumulated depreciation at this date are as follows(all amounts in thousands).Depreciation is computed at ¥72,000 per year on a straight-line basis.Instructions Presented below is a set
On April 1, 2015, Pavlova Company received a condemnation award of \($410\),000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new highway. The land and building cost \($60\),000 and \($280\),000, respectively, when they were acquired. At
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