Allfoods Corp. (Allfoods) acquired 80 percent of the outstanding common stock of Baked Beans Corp. in a business combination. After value consideration transferred value of tangible and intangible assets acquired‚ libilities assumed‚ I recommend doing this consolidation general entry for the business combination: Dr. | Land | $ 21‚000‚000 | | | | Dr. | PPE | $ 7‚000‚000 | | | | Dr. | IPR&D | $ 15‚000‚000 | | | | Dr. | Trademark | $ 3‚000‚000 | | | | Dr. | Goodwill
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objective of accounting for transactions under share-based payment arrangements with employees is to recognize in the financial statements the employee services received in exchange for equity instruments issued or liabilities incurred and the related cost to the entity as those services are consumed. This Topic uses the terms compensation and payment in their broadest senses to refer to the consideration paid for employee services. 2. How many periods of EPS data must be presented? 260-10-45-7 EPS data
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a. Current Liabilities b. Part of Accounts Payable c. Long-term Liabilities d. Reduction from accounts 4. Which of the following is not an acceptable lasts for valuation of inventory? a. Historical Cost b. Current replacement cost c. Prime cost d. Current selling price less cost of disposal 5. Capetown Company began operation on Jan. 1‚ 2011 Capetown has found that its estimated bad debt expense has been consistently higher than actual bad debts. Management proposes lowering
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Criticism on historical cost accounting 1. Inability to provide useful information in times of rising prices * Assumes that money holds a constant purchasing power‚ so the result become irrelevance in times of rising prices * Received much criticism during high inflation periods of 1970s and 1980s. * Obvious flaw in time of rising prices. 2. Real problem of additivity * Some countries allowed revaluation of non-current assets and the different assets are revaluing
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1. Sadie incorporates her sole proprietorship with assets having a fair market value of $80‚000 and an adjusted basis of $100‚000. Even though § 351 applies‚ Sadie may recognize her realized loss of $20‚000. F True False 2. For § 351 purposes‚ stock warrants are included in the definition of "stock." F True False 3. In order to retain the services of Paige‚ a key employee in Byron’s sole proprietorship‚ Byron contracts
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disadvantages of Historical Cost accounting Historical cost accounting has been a controversial method that experienced many criticisms over a period of time‚ especially since it considers the acquisition cost of an asset and does not recognize the current market value. Merits and demerits of this method are as follows. The most obvious advantage of HC accounting is objectivity. It is a predominantly objective system‚ which records the original cost of an item when it was purchased. Under historical cost
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Last Name___________________ First Name ________________ Section#____________________ 1. Diversified Industries sells electronic products in reusable containers. Customers pay a deposit for each container. The deposit is equal to the container’s cost. Customers receive a refund when the container is returned. During 2012‚ deposits collected on containers shipped were $350‚000. Deposits are forfeited if containers are not returned in 18 months. During 2012‚ $250‚000 was refunded and deposits of
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cannot pay a note due that day. It is a $500‚000 note with $50‚000 accrued interest payable to Edsen‚ Inc. Edsen agrees to forgive the accrued interest‚ extend the maturity date to December 31‚ 2008‚ and reduce the interest rate to 4%. The present value of the restructured cash flows is $428‚000. Instructions Prepare entries for the following: (a) The restructure on Poore’s books. (5 points) (b) The payment of interest on December 31‚ 2007. (5 points) (c) The restructure on Edsen’s books
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The historical value of speeches in Thucydides In writing his history as a whole‚ it is fair to say that Thucydides has always been praised for his relative historical accuracy‚ be that due to his actual presence at events‚ his use of eyewitness testimony or his noted checking of facts. In style Thucydides kept his narrative sections rather impersonal thereby allowing the story to unfold itself. However‚ to then lay bare what stood behind the narrative‚ the moral possibilities‚ the mistakes
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following information for a one-year project‚ answer the following questions. Recall that PV is the planned value‚ EV is the earned value‚ AC is the actual cost‚ and BAC is the budget at completion. PV ¼ $ 23‚000 EV ¼ $ 20‚000 AC ¼ $ 25‚000 BAC ¼ $ 120‚000 a. What is the cost variance‚ schedule variance‚ cost performance index (CPI)‚ and schedule performance index (SPI) for the project? Cost Variance = EV-AC = $20‚000 - $25‚000 = -$5‚000 Schedule Variance = EV-PV = $20‚000 - $25‚000 = -$3
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