Questions from Financial Reporting


Q: The following data pertain to Tyne Company’s investments in marketable equity securities

The following data pertain to Tyne Company’s investments in marketable equity securities. (Assume that all securities were held throughout 2019 and 2020.) Note that the new FASB guid...

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Q: The stockholders’ equity section of Peter Corporation’s balance sheet at December 31

The stockholders’ equity section of Peter Corporation’s balance sheet at December 31, 2017, follows: Common stock ($10 par value); authorized …………………… 1,000,000 shares, issued and outstanding 900,000...

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Q: Mary Abbott is a long-time employee of Love Enterprises,

Mary Abbott is a long-time employee of Love Enterprises, a manufacturer and distributor of farm implements. Abbott plans to retire on her 65th birthday, five years from January 1, 2017. Her salary at...

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Q: Use the facts given in E14-4. Repeat the requirements

Use the facts given in E14-4. Repeat the requirements assuming that the discount and earnings rate is 11% instead of 8%. E14-4: Mary Abbott is a long-time employee of Love Enterprises, a manufacturer...

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Q: The following information pertains to Gali Company’s defined benefit pension plan for

The following information pertains to Gali Company’s defined benefit pension plan for 2017: Fair value of plan assets, beginning of year ………… $350,000 Fair value of plan assets, end of year ………………… 5...

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Q: The following information pertains to Kane Company’s defined benefit pension plan:

The following information pertains to Kane Company’s defined benefit pension plan: Balance sheet asset, ……………………. 1/1/2017 $ 2,000 AOCI—prior service cost, ……………... 1/1/2017 24,000 Service cost …………...

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Q: Dell Company adopted a defined benefit pension plan on January 1,

Dell Company adopted a defined benefit pension plan on January 1, 2017. Dell amortizes the initial prior service cost of $1,334,400 over 16 years. It assumes a 7% discount rate and an 8% expected rate...

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Q: On January 1, 2017, East Corporation adopted a defined benefit

On January 1, 2017, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was $60,000. In 2017, East incurred service cost of $150,000 and amortized $12,00...

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Q: Nome Company sponsors a defined benefit plan covering all employees. Benefits

Nome Company sponsors a defined benefit plan covering all employees. Benefits are based on years of service and compensation levels at the time of retirement. Nome has a September 30 fiscal year-ends....

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Q: The disclosure rules for business combinations complicate financial analysis. Trend analysis

The disclosure rules for business combinations complicate financial analysis. Trend analysis becomes difficult because comparative financial statements are not retroactively adjusted to include data f...

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