ccount for the exchange of non-monetary assets on the basis of the book value of the asset given up or the fair value of the asset received. Under IFRS, all gains on non-monetary exchanges are recognized, regardless of whether the transaction has commercial substance or not.
Q: What amount should Makayla report as profit or loss from business? You may refer to her partially…
A: Profit and loss statement: A Profit and loss statement or income statement is one of the important…
Q: a for the product alpha are shown: produced from the process 600 units Allocated share of joint…
A: Answer :Price per unit after further processing : Price per unit after further processing =(Cost of…
Q: How does the revenue-expense approach differ from the asset-liability approach for defining…
A: In accounting there are many methods of preparing the account statement each method have own…
Q: Lita company has two divisions: Division A and division B. Last month the company's income before…
A: The contribution margin is the amount of income left over after variable costs related to producing…
Q: CPJ Enterprise constructed a building at a cost of $24,000,000. Average accumulated expenditures…
A: Solution... Cost of Building = construction cost + Avoidable interest = $24,000,000 +…
Q: Jackson County Senior Services is a nonprofit organization devoted to providing essential services…
A: Preparation of segmented income statement helps in deciding about the segment whether it is to be…
Q: A corporation filed its Annual Income Tax Return for the taxable year 2018 on April 15, 2019…
A: a) When a tax taxpayer has made substantial under declaration of taxable sales, receipts or income…
Q: How would one assess below parameters using financial statements: a) Market assessment of the firm…
A: Market assessment of the firm and its market capitalisations.Market assessment of a firm and its…
Q: Fill in the blank cells. Do not enter dollar signs or commas in the input boxes. Round all answers…
A: Contribution Margin :— It is the difference between sales revenue and variable cost. Operating…
Q: Which of the following statements is/are FALSE:
A: 1.Prudence convention: It is also known as Conservatism Principle . In this anticipated revenues…
Q: ! Required information [The following information applies to the questions displayed below.] Sparrow…
A: The Cost to Retail Percentage =$448,595/$732,400*100 = 61.25% Estimated inventory at cost=…
Q: The following were selected from among the transactions completed by Caldemeyer Co. during the…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Culver Corporation reported net income of $50,300 in 2020. Depreciation expense was $15,600. The…
A: A cash flow statement seems to be an accounting report that shows how a company spends its money.…
Q: Flint Corporation borrowed $94,000 on November 1, 2025, by signing a $96,115, 3-month,…
A: Journal entry is a primary entry that records the financial transactions initially. The…
Q: ak Inc, reported a sales margin of 8%, a capital turnover of 11.6, and income of $7000. the…
A: Answer : Sales revenue = Income / Sales margin
Q: Farhgate Inc. should recognize revenue when the performance obligation has been satisfied and when…
A: Farhgate Inc. should recognize revenue when the performance obligation has been satisfied and when…
Q: ltz Company had the following environmental activities and product information: Environmental…
A: In this question, we will calculate the activity rates and the cost.
Q: Dandy Corporation’s business building was destroyed by an earthquake this year and was located in a…
A: The building are insured for accidents and hazardz like earthquake but the amount of insurance done…
Q: Suppose your company sells services of $310 in exchange for $200 cash and $110 on account.…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Estimate ending inventory for 2022 assuming
A: Ending inventory is the current assets reported in the balance sheet of the company under the head…
Q: Assume the following information appears in the standard cost card for a business that makes only…
A: The term "variance" refers to the difference between the actual cost of variable production…
Q: Presented below is information related to Sheffield Company. December 31, 2022 December 31, 2023…
A: LIFO is the method of determining the ending balance of inventory where the cost of inventory is…
Q: Compute the markup percentage under variable costing that will allow Sheffield Products its desired…
A: Return on investment(ROI) 25% Value of investment = 1400000 Markup Value = 1400000*25% = 350000 The…
Q: LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 Cash flows from…
A: Free Cash Flow (FCF) is the cash remaining for paying fixed or short-term obligations i.e. payment…
Q: Standard Direct Materials Cost per Unit Truly Delicious Inc. produces chocolate bars. The primary…
A: The variance is the resulting amount of applied cost and actual cost. The applied cost is calculated…
Q: Journalize the transactions. (List all debit entries before credit entries. Credit account titles…
A: General journal is a chronological accounting record of a company's financial transactions. It is…
Q: Sipple Furniture’s master budget for the year includes $341,400 for fixed supervisory salaries.…
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: The Foundational 15 (Static) [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5] Skip to question [The following…
A: Contribution Margin :— It is the difference between sales revenue and variable cost. Segment…
Q: 5. The president of Laporte Inc., Tanya Turcotte, was provided with a copy of the operating…
A: a. Cash collected from customers = Beginning Receivables + Sales - Ending Receivables b. Cash paid…
Q: a complete liquidation, Corporation Z distributes a building with adjusted tax basis of $200,000 and…
A: The liquidation need to be considered. when there is liquidation take place then all the assets and…
Q: The average price of a gallon of gas in 2018 increased $0.30 (12.4 percent) from $2.42 in 2017 to…
A: a. Horizontal Analysis - Horizontal Analysis is part of the analysis in which individuals get the…
Q: Jael Company makes clocks. The fixed overhead costs for 2020 total $900,000. The company uses direct…
A: OVERHEAD COST VARIANCE Overhead Cost Variance: Overhead cost variance or Overall (or net) overhead…
Q: On January 1, 2018 Weins Inc. granted 100,000 stock appreciation rights (SARs) to its executives.…
A: Stock Appreciation rights : Under this plan, the entity will make payments in cash to its employees…
Q: Thomas and Anna are in a partnership sharing profits and losses equally. The partnership agreement…
A: Interest on capital is an expense for the business on the amount of capital owed to the owner(s).…
Q: South Union Township store has acquired a transferable license to sell alcohol in Pennsylvania for…
A: Answer:- Amortization meaning:- The distribution of an intangible asset's cost over the course of…
Q: A cash-generating unit comprises the following assets:
A: The impairment loss is the loss suffered by the company when the fair value of the asset in lower…
Q: Sam earns the following amounts in the current year: Dividends received from a public Canadian…
A: Introduction: The net income from a property is the gross income minus the property maintenance…
Q: Cranes, Inc. provided the following budgeted information for March through July: Projected sales…
A: Budgeted income can be calculated by deducting expenses from the sales revenue. It is the excess…
Q: Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and…
A: The contribution margin income statement arranges the information so that management is able to…
Q: Assets purchased on long-term credit contracts should be recorded at the present value of the…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: The owner of a company asks you if he can charge all his personal expenses to his business. He said…
A: The business entity assumption is that a business is a separate entity from its owner, and the…
Q: Debenture is a debt instrument and so is issue of shares
A: Equity is reported under the head stockholders' equity in the balance sheet of the company. Whereas,…
Q: The following accounts come from the ledger of SnowGo Company at December 31, 2020. 101 Cash $7,000…
A: A trial balance is a financial report which shows the closing balances of all accounts.
Q: For the company, United Therapeutics, which specific accounts should the auditors identify for…
A: United therapeutics is biological company and is listed on NASDAQ stock exchange. It designs and…
Q: Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the…
A: Introduction: Interest costs incurred during construction period can be capitalized to the extent of…
Q: The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of…
A: Contribution Margin :— It is the difference between sales revenue and variable cost. Net…
Q: years ago for $100,000 and each piece of equipment had $52,000 of depreciation deducted for tax…
A: The organization sold three machinery with various different amounts while purchased and deppricated…
Q: Budgeting can be an important management tool if implemented properly. Identify several positive…
A: A plan that is written down and followed to determine how one will spend money on a monthly basis is…
Q: Discuss arguments supporting the need for improving the Statement of Cash Flows (SCF). What…
A: 1. The SCF is an important financial statement for understanding the financial health of a business.…
Q: Shouldn't we deduct costs to sell the equipment amount of £100,000 from Fair value to get Net…
A: Recoverable amount is the higher of fair value less cost to sell and its value in use. Impairment…
Indicate whether each of the following statements is true or false.
Companies account for the exchange of non-monetary assets on the basis of the book value of the asset given up or the fair value of the asset received.
Under IFRS, all gains on non-monetary exchanges are recognized, regardless of whether the transaction has commercial substance or not.
Step by step
Solved in 2 steps
- Indicate whether each of the following statements is true or false. 1. Assets purchased on long-term credit contracts should be recorded at the present value of the consideration exchanged. 2. Companies account for the exchange of non-monetary assets on the basis of the book value of the asset given up or the fair value of the asset received. 3. Under IFRS, all gains on non-monetary exchanges are recognized, regardless of whether the transaction has commercial substance or not.When cash is involved in an exchange having commercial substance _________________. a. a gain or loss is computed by comparing the fair value of the asset received with the fair value of the asset given up b. only gains should be recognized c. gains or losses are recognized in their entirety d. only losses should be recognizedThe cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is usually recorded at
- A company should record an asset called "Goodwill" when it purchases another company for an amount that exceeds the fair value of the other company's identifiable net assets. Select one: True FalseWhich statement is correct regarding derecognition of financial assets? A. Transfer of risks and rewards is evaluated by determining the transferee’s ability to sell the asset. B. A sale and repurchase transaction where the repurchase price is a fixed price is a transfer of financial asset that qualifies for derecognition. C. The entity shall continue to recognize the transferred asset in its entirety if the transfer does not qualify for derecognition because the entity has retained substantially all the risks and rewards of ownership of the transferred asset. D. If an entity neither transfers nor retains substantially all the risks and rewards of ownership of a transferred asset, the entity shall continue to recognize the transferred asset to the extent of its continuing involvement.PAS 16 states that if an exchange transaction causes a significant change in cash flows, the transaction has commercial substance. In transactions of this type, at what amount should the entity record the asset received? Book Value plus Boot Book Value Fair Value inminsic value
- Which of the following is correct about subsequent measurement of financial asset at fair value? a. the financial asset shall be measured at fair value if the business model is not to collect contractual cash flows on specified dates and the contractual cash flow ae not solely payment of principal and interest. b. An entity may designate a finacncial asset as measured at fair value through profit or loss even if the financial asset satisfies the amortized cost measurement. c. both are correct d. both are incorrectIFRS requires companies to measure their financial assets at fair value except when based on:(a) whether the equity method of accounting is used.(b) whether the fi nancial asset is a debt investment.(c) whether the fi nancial asset is an equity investment.(d) whether an investment is classifi ed as trading.What is the principle for recognition of a financial asset in PFRS 9? A. A financial asset is recognized when, and only when, the entity obtains control of the instrument and has the ability to dispose of the financial asset independent of the actions of others. B.A financial asset is recognized when, and only when, the entity becomes a party to the contractual provisions of the instrument. C. A financial asset is recognized when, and only when, the entity obtains the risks and rewards of ownership of the financial asset and has the ability to dispose of the financial asset. D. A financial asset is recognized when, and only when, it is probable that future economic benefits will flow to the entity and the cost or value of the instrument can be measured reliably.
- The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is usually recorded at A) either the fair value of the asset given up or the asset received, whichever one results in the largest gain (smallest loss) to the company. B) the fair value of the asset received if it is equally reliable as the fair value of the asset given up. C) the fair value of the asset given up, and a gain or loss is recognized. D) the fair value of the asset given up, and a gain but not a loss may be recognized.Which of the following statements is TRUE? O The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair value. O According to IFRS #3: Revised, cost directly attributable in effecting the business combination (e.g., finders' fee and other direct cost) must be charged to share premium. Transaction costs directly related to the issue of debt instruments are deducted from the fair value of the debt on initial recognition and are amortized over the life of the debt as part of the effective interest rate. Directly attributable transaction costs incurred issuing equity instruments are deducted from revenue. In net asset acquisition, gain on bargain purchase is recognized in the Profit or Loss of the acquirer (after reassessment) if the consideration transferred is more than the fair value of net assets acquired.When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired at: a.The fair value of the nonmonetary asset surrendered minus cash paid. b.The book value of the asset received minus cash paid. c.The fair value of the nonmonetary asset surrendered plus cash paid. d.The fair value of the nonmonetary asset surrendered plus cash received.