Winged Wheel Garage, Inc., purchased a parcel of land on January 3, 2012, for $50,000. Its market
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Requirements
1. Using the U.S. GAAP cost principle, at what value would the land be reported on the balance sheet as of January 3, 2012? What value would the land be reported at on the December 31, 2012, balance sheet?
2. Using IFRS, at what value would the land be reported on the balance sheet as of January 3, 2012? What value would the land be reported at on the December 31, 2012, balance sheet?
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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