Questions from Intermediate Accounting

Q: Swinson, Inc., a private company that applies ASPE, incurred

Swinson, Inc., a private company that applies ASPE, incurred $15,000 in materials and $12,000 in direct labour costs between January and March 2014 to develop a new product. In May 2014, the criteria...

Q: ABC Company has a trademark with a carrying amount of $83

ABC Company has a trademark with a carrying amount of $83,750, and expected useful life of 15 years. As part of an impairment test on December 31, 2014, due to a change in customer tastes, ABC gathere...

Q: Use the data provided in BE12- 16. How would your

Use the data provided in BE12- 16. How would your response change if ABC is a public company reporting under IFRS? In exercise E12-16: ABC Company has a trademark with a carrying amount of $83,750, a...

Q: Use the data provided in BE12-16, except assume that

Use the data provided in BE12-16, except assume that useful life is expected to be unlimited. How would your response change if ABC reports under (a) ASPE (b) IFRS In exercise E12-16: ABC Compa...

Q: On September 1, 2014, Luigi Corporation acquired Edinburgh Enterprises for

On September 1, 2014, Luigi Corporation acquired Edinburgh Enterprises for a cash payment of $863,000. At the time of purchase, Edinburgh's statement of financial position showed assets of $900,000, l...

Q: Using the data from BE12-19, assume that Luigi Corporation

Using the data from BE12-19, assume that Luigi Corporation is a public company and that the goodwill 10) was allocated entirely to one cash-generating unit (CGU). Two years later, information about th...

Q: Using the data from BE12-19, assume that Luigi Corporation

Using the data from BE12-19, assume that Luigi Corporation is a private entity. Explain how goodwill will 10) be tested for impairment. If the unit's carrying amount (including goodwill) is $3,613,000...

Q: Early in its 2014 fiscal year (December 31 year-end

Early in its 2014 fiscal year (December 31 year-end), Hayes Company purchased 10,000 shares of Kenyon Corporation common shares for $26.18 per share, plus $1,800 in brokerage commissions. These securi...

Q: Nigel Corporation is interested in purchasing Lau Company Ltd. The total

Nigel Corporation is interested in purchasing Lau Company Ltd. The total of Lau’s net income amounts over the last five years is $750,000. During one of those years, Lau reported a gain on discontinue...

Q: Rachel Timber Inc., a small private company that follows Canadian ASPE

Rachel Timber Inc., a small private company that follows Canadian ASPE, owns 9,000 hectares of timberland purchased in 2001 at a cost of $1,400 per hectare. At the time of purchase, the land without t...