Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 8, Problem 28P
To determine
Identify the amount of net income that company R should report for the quarter ended September 30.
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Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:• A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.• $0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report isa. $235,000b. $250,000c. $255,000d. $270,000
Occidental Company's P10,000,000 net income for the quarter ended September 30, included the following after-tax items
AP1,200,000 gain realized on April 30 was allocated equally to the second, third and fourth quarters of the year.
A P3,000,000 cumulative loss resulting from a change in inventory valuation method was recognized on August 2.
In addition, Occidental paid P600,000 on February 1 for the calendar-year property tax. Of this amount, P150,000 was allocated to the third
quarter. For the quarter ended September 30, Occidental should report net income of
1. QUIRK ACCIDENT Co. reports profit before tax of
P200,000 in its 2nd quarter interim financial statements
before consideration for the following:
a. Inventory with a carrying amount P10,000 has a net
realizable value of P12,000. It is expected that the change
in value will reverse in the 3rd quarter. There have been no
write-downs of inventory recognized in previous periods.
b. An investment property measured under the cost model
has a carrying amount of P150,000 but its recoverable
amount is P140,000.
c. An investment in FVPL measured at acquisition cost of
P20,000 has a fair value of P38,000 as at the end of 2nd the
quarter. However, the increase in fair value is expected to
be only temporary.
d. No depreciation is recognized during the 2nd quarter. The
annual straight-line depreciation of items of PPE is
P60,000.
e. ABC Co. has a policy of providing 12 days paid vacation
leaves for its employees. The vacation leaves are vesting
and accumulating. Total paid vacation leaves…
Chapter 8 Solutions
Advanced Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - The management approach requires a firm to define...Ch. 8 - What is an operating segment?Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - To satisfy geographic area disclosure...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - How does a company determine the amount of income...Ch. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - What type of segment information must companies...Ch. 8 - How would an annual bonus paid at year-end be...Ch. 8 - Which of the following does U.S. GAAP not consider...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Which of the following is not necessarily true for...Ch. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Which of the following items is required to be...Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Which of the following information items with...Ch. 8 - Prob. 14PCh. 8 - In considering interim financial reporting, how...Ch. 8 - How should material seasonal variations in revenue...Ch. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Niceville Company pays property taxes of 100,000...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Noventis Corporation prepared the following...
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