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...
-
The trial balance columns of the worksheet for Gibson Roofing at March 31, 2012, are as follows. Other data:1. A physical count reveals only $550 of roofing supplies on hand.2. Depreciation for March...
-
At the beginning of 2022, Ms. Pope purchased a 20 percent interest in PPY Partnership for $24,000. Ms. Pope's Schedule K-1 reported that her share of PPY's debt at year-end was $27,000, and her share...
-
Consider two identical closed rigid vessels \(A\) and \(B\). Vessel A contains \(32 \mathrm{~kg}\) oxygen at \(373 \mathrm{~K}\) while \(\mathrm{B}\) contains \(28 \mathrm{~kg}\) nitrogen at \(373...
-
Ichiro Manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company's books and from the production reports submitted by the...
-
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,250 rackets and sold 5,530. Each racket was sold at a price of $90. Fixed overhead costs are...
-
Subpump Limited is an active business corporation owned 100% by George Simpson, who has been attempting to sell the company for several years and have recently received an offer from a serious buyer....
-
American history of independence became inspiration for different countries freedom struggle. Explain ?
-
If inventory cost are rising, which inventory method will result in lower income taxes paid?
-
The Bears have bank accounts, investments totalling $35,000 and personal property equaling $45,000. Currently, Klawz Bear has educational loans of $12,000. Their salaries total $55,000 and their...
-
An online company is advertising a vacuum cleaner on sale for 55 % off the original price of $269.99. What is the sale price for the vacuum cleaner? Round your answer to the nearest cent.
-
If net operating income is $34,000, average operating assets are $204,000, and the minimum required rate of return is 15%, what is the residual income?
-
Calamity Mining Company s reserves of ore are being depleted, and its costs of recovering a declining quantity of ore are rising each year. As a result, the company s earnings are declining at the...
-
Your lovely mother-in-law, who loves waxing lyrically about your spouse's last paramour before meeting you, owns a successful business. She produces a product that when applied to the skin makes you...
-
1) The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a) An inelastic demand b) An elastic demand c) A demand curve that is...
-
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?
-
Consider an experiment that selects a cell phone camera and records the recycle time of a flash (the time taken to ready the camera for another flash). The possible values for this time depend on the...
-
Suppose that the recycle times of two cameras are recorded. The extension of the positive real line \(R\) is to take the sample space to be the positive quadrant of the plane \[ S=R^{+} \times R^{+}...
-
Each message in a digital communication system is classified as to whether it is received within the time specified by the system design. If three messages are classified, use a tree diagram to...
Study smarter with the SolutionInn App