Questions from Intermediate Accounting

Q: Indicate whether the use of IFRS or ASPE is either required or

Indicate whether the use of IFRS or ASPE is either required or more likely for the following entities as preparers of financial statements:

Q: In the blanks provided to the left below, enter the letters

In the blanks provided to the left below, enter the letters of the underlying assumption, measurement method, qualitative criteria, or constraint most closely associated with the statements. Some lett...

Q: Vert Ltd. purchased a vehicle on 1 January 20X8 for $

Vert Ltd. purchased a vehicle on 1 January 20X8 for $34,000 and began to use it immediately. The estimated physical life of the vehicle is 20 years, but the estimated useful life to Vert is 10 years....

Q: XYZ Inc. has a building it purchased for $400,

XYZ Inc. has a building it purchased for $400,000. It is estimated the building has a useful life of 25 years and zero residual value. The building has three major components. XYZ uses the straight-li...

Q: Phillips Ltd. purchased a machine on 26 March 20X3 for $

Phillips Ltd. purchased a machine on 26 March 20X3 for $90,000 and began to use it immediately. The estimated useful life of the machine is 5 years, and it has an expected residual value of $10,000 at...

Q: Innovative Inc. has a piece of equipment with a carrying amount

Innovative Inc. has a piece of equipment with a carrying amount of $175,000. Technology has changed, indicating that the machine may be impaired. A new machine with updated technology could be purchas...

Q: Food Inc., a public company, has a machine that processes

Food Inc., a public company, has a machine that processes and packages tuna in oil. This machine cannot be used for any other purpose. The machine originally cost $100,000 and is being amortized on a...

Q: Bovine Ltd. has the following assets in a CGU:

Bovine Ltd. has the following assets in a CGU: The recoverable amount has been determined to be $1,500. The separate fair value less costs of disposal for land is $600; no other assets could be separa...

Q: Montonne Corp. is a private company that complies with ASPE.

Montonne Corp. is a private company that complies with ASPE. Montonne has a piece of equipment that cost $254,000. Its useful life to the company is estimated to be 15 years, after which it is expecte...

Q: On 1 January 20X2, Investor Company purchased $1,000

On 1 January 20X2, Investor Company purchased $1,000,000 of Operating Corp. 5% bonds, classified as an AC investment. The bonds pay semi-annual interest each 30 June and 31 December. The market intere...