Questions from Intermediate Accounting

Q: On December 31, 2013, Grey Inc. owns a machine

On December 31, 2013, Grey Inc. owns a machine with a carrying amount of $940,000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine $1,300,0...

Q: On April 1, 2014, Lombardi Corp. was awarded $

On April 1, 2014, Lombardi Corp. was awarded $460,000 cash as compensation for the forced sale of its land and building, which were directly in the path of a new highway. The land and building cost $6...

Q: The 2014 annual report of Trocchi Inc. contains the following information

The 2014 annual report of Trocchi Inc. contains the following information (in thousands): Instructions (a) Calculate the following ratios for Trocchi Inc. for 2014: 1. Asset turnover ratio 2. Rate of...

Q: Addison Manufacturing holds a large portfolio of debt securities as an investment

Addison Manufacturing holds a large portfolio of debt securities as an investment. The fair value of the portfolio is greater than its original cost, even though some securities have decreased in valu...

Q: On August 1, 2014, Iroko Corporation purchased a new machine

On August 1, 2014, Iroko Corporation purchased a new machine for its assembly process. The cost of this machine was $136,400. The company estimated that the machine will have a trade-in value of $14,2...

Q: During 2014, Laiken Limited sold its only Class 3 asset.

During 2014, Laiken Limited sold its only Class 3 asset. At the time of sale, the balance of the undepreciated capital cost for this class was $37,450. The asset originally cost $129,500. Instruction...

Q: Barnett Inc. purchased computer equipment on March 1, 2014,

Barnett Inc. purchased computer equipment on March 1, 2014, for $31,000. The computer equipment has a useful life of five years and a residual value of 51,000. Barnett uses a double declining- balance...

Q: Jiang Company Ltd. Purchases equipment on January 1, 2014,

Jiang Company Ltd. Purchases equipment on January 1, 2014, for $387,000 cash. The asset is expected to have a useful life of 12 years and a residual value of$39,000.Jiang prepares financial statements...

Q: The following assets have been acquired by various companies over the past

The following assets have been acquired by various companies over the past year: 1. Boardroom table and chairs for a corporate head office 2. Dental equipment in a new dental clinic 3. Long-haul truck...

Q: Diderot Corp. acquired a property on September 15, 2014,

Diderot Corp. acquired a property on September 15, 2014, for $220,000, paying $3,000 in transfer taxes and a $1,500 real estate fee. Based on the provincial assessment information, 75% of the property...