• Q : Law suite recognized under both gaap and ifrs....
    Accounting Basics :

    If a company has a 51% chance that a customer will win a law suite against them for damages between $5-$15 million how is this recognized under both GAAP and IFRS

  • Q : What amount of goodwill should appear in balance sheet....
    Accounting Basics :

    Tosco Co. paid $540,000 for 80% of the stock of Martz Co. when the book value of Martz's net assets was $600,000. For all of Martz's assets and liabilities, book value and fair value were approximat

  • Q : Recommendations and conclusions for resolving the issues....
    Accounting Basics :

    Answer the following questions, documenting any additional issues including the accounting literature identified to support recommendations and conclusions for resolving the issues.

  • Q : Cash distribution from caravan....
    Accounting Basics :

    During the year, Caravan reports ordinary income of $60,000, a long-term capital gain of $10,000, and a charitable contribution of $5,000. Alan receives a $20,000 cash distribution from Caravan on D

  • Q : Journal entries necessary to account....
    Accounting Basics :

    Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo accounts for that investment as (1) an available-for-sale investment, and (2) elects the fair

  • Q : Calculate depreciation expense for year 2013....
    Accounting Basics :

    A company acquired a new high-tech printing press on January 1, 2011, for $90,000. At that time, the company estimated the press would have a six-year life and salvage value of $6,000.

  • Q : Concept of allowance for doubtful-accounts....
    Accounting Basics :

    The company uses the perpetual inventory system. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its October 31 balance sheet.

  • Q : Prepare the journal entry to record the retirement....
    Accounting Basics :

    Ignoring income taxes, compute the amount of loss, if any, to be recognized by Prebish as a result of retiring the $1,000,000 of bonds in 2012. (Round answers to 0 decimal places, e.g. $38,548.)

  • Q : Which tax attributes are reduced and by how much....
    Accounting Basics :

    Which tax attributes are reduced and by how much? Assume USA did not make any special elections when reducing its attributes.

  • Q : Prepare the journal entries to record the purchase....
    Accounting Basics :

    Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26.

  • Q : Expected additional case expenses amounting....
    Accounting Basics :

    She also expected additional case expenses amounting to $3,000 per years. The cost of capital is 12%. Assume there are no income taxes.

  • Q : Gross incomes from the sale....
    Accounting Basics :

    Suppose instead that Jasmine's year 10 gross incomes from the sale of the kittens is $4,000. How much can she deduct?

  • Q : What consolidated total assets will be....
    Accounting Basics :

    Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values.

  • Q : What is the variable production cost per unit....
    Accounting Basics :

    Top Disc manufactures frisbees. The following information is available for 2013 , the company's first year in business when it produced 325,000 units. Revenue of $450,000 was generated by the sale o

  • Q : Evaluate a sample for testing inventory....
    Accounting Basics :

    Provide recommendations to the CPA about how to select and evaluate a sample for testing inventory.

  • Q : Liquidate the lifo layers....
    Accounting Basics :

    The controller decided that a last-minute inventory purchase, at current higher prices, was the answer to the problem, and asked the purchasing department to check the inventory files and stock up o

  • Q : Prepare the stockholders equity section of balance sheet....
    Accounting Basics :

    Prepare the stockholders' equity section of the balance sheet as of December 31, 2012. Net income for the year was $480,000.

  • Q : Compute the unit product cost for year....
    Accounting Basics :

    Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

  • Q : Bank overdrafts that caused balance to have negative balance....
    Accounting Basics :

    Kramer has two primary bank accounts. At December 31, 2012, one of these accounts had bank overdrafts that caused the balance to have a negative balance of 100,000. The other bank account had a bala

  • Q : Passive activity loss limitation....
    Accounting Basics :

    What is the passive activity loss limitation? Are rental activies passive activities? Why or why not?  

  • Q : Cash flow statements in the proprietary funds....
    Accounting Basics :

    Compare and contrast proprietary fund reporting under GASB No.34 with GAAP financial reporting for non-governmental entities. Examine why GASB requires the direct method for cash flow statements in

  • Q : Variable cost per unit and total fixed costs....
    Accounting Basics :

    In the most cases, for profitable firm, assuming that unit sales remain the same, if the variable cost per unit and total fixed costs decrease by 10% and the firm reduces the selling prices to custo

  • Q : Good source for the audit team....
    Accounting Basics :

    On a standard financial statement audit, which employees within an organization would likely be a good source for the audit team?

  • Q : Proposed change in the credit standards problem....
    Accounting Basics :

    Evaluate the proposed change in credit standards and make a recommendation to the firm.

  • Q : Determine the effective annual rate....
    Accounting Basics :

    What is the effective annual rate? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 dec

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