With respect to Statement 4, if AMRC had used its old classification method for its leasesinstead of its new classification method, its 2009 total asset turnover ratio would mostlikely be:A. lower.B. higher.C. the same.

With respect to Statement 4, if AMRC had used its old classification method for its leasesinstead of its new classification method, its 2009 total asset turnover ratio would mostlikely be:A. lower.B. higher.C. the same.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 4C

See similar textbooks

Similar questions

If all of the company’s leases were accounted for as finance leases, then: 1.The company’s net operating asset turnover (i.e., NOA turnover) for the most recent fiscal year would be higher than the amount that we would obtain if we used the reported amounts shown on the company’s income statement and balance sheet. 2.The company’s net operating asset turnover (i.e., NOA turnover) for the most recent fiscal year would be lower than the amount that we would obtain if we used the reported amounts shown on the company’s income statement and balance sheet. 3.The company’s net operating asset turnover (i.e., NOA turnover) for the most recent fiscal year would be the same as the amount that we would obtain if we used the reported amounts shown on the company’s income statement and balance sheet. 4.This question cannot be answered with the information given to me
Consider the following statements:I. If the financial asset is reclassified from amortized cost to FVOCI, the financial asset is measured at fair value at the reclassification date and a new effective interest rate must be determined based on the new carrying amount or fair value at reclassification date.II. The difference between previous carrying amount and fair value of a financial asset when reclassified from amortized cost to FVPL is recognized in profit or loss.III. The cumulative gain or loss previously recognized in other comprehensive incomeis reclassified to profit or loss at reclassification date when the financial asset is reclassified from FVOCI to FVPL.IV. The original effective rate is not adjust for financial assets that are reclassified from FVPL to FVOCI.State whether the foregoing statements are incorrect.a. I and II are incorrectb. II and III are incorrectc. I and IV are incorrectd. All the statements are incorrect
A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar asset priced at $40,828 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,683, the cost basis of the new asset is Select the correct answer. $43,425 $38,742 $40,828 $36,145
International Financial Reporting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the property, plant, and equipment must be revalued periodically to fair value. Under fair value, if there is an increase in the value of the property, plant, and equipment during the reporting period, then the increase is credited to stockholders’ equity. However, if there is a decrease in fair value, then the decrease is reported as an expense for the period.How is the international accounting treatment for changes in fair value for property, plant, and equipment similar to investments?
A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A…
A fixed asset with a cost of $36,671 and accumulated depreciation of $33,004 is traded for a similar asset priced at $53,888 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,581, at what cost will the new equipment be recorded in the books? a.$914 b.$4,581 c.$32,090 d.$53,888
On 31 December 2023, the statement of financial position of Dominic Ltd showed the following non-current assets after charging depreciation. Leasehold land $ 800 000 Accumulated depreciation (400 000) $ 400 000 Equipment $ 340 000 Accumulated depreciation (180 000) $ 160 000 The company has adopted fair value for the valuation of non-current assets, as per the revaluation method. On 31 December 2023, an independent valuer assessed the fair value of the leasehold land to be $420 000 and the equipment to be $100 000. The Asset Revaluation Surplus Account balance on 31 December 2023 is $15,000 before the revaluation takes place. Required 1. Prepare any necessary entries to revalue the leasehold land and the equipment as at 31 December 2023. Hint: Show separate entries for revaluation gain or loss, you may only offset current year’s loss with asset revaluation surplus balance amount before the revaluation took place. 2. Assume that the leasehold land and equipment had remaining useful…
Entity A recognizes a gain of P100 from the change in FVLCS of its biological assets during the period. If the change in FVLCS due to price change is P70, the change in FVLCS due to physical change must be P40. True or False. Please explain.
True or False _____ PAS 16 defines depreciation as "the decrease in the value of an asset." ______ According to PAS 16, items of PPE are initially measured at cost and subsequently measured using either the cost model or the fair value model. _______ an entity acquires an asset for P120k. The asset is estimated to have a useful life of 10 years and a residual value P20K. tHE STRAIGHT LINE DEPRECIATION RATE BASED ON DEPRECIABE AMOUNT IS 10% _______ An entity acquires an asset for P1M. A P200k residual value is estimated for the asset. Ar the end of the asset's useful life, the accumulated depreciation wil be equal to P1M. _______ A machine acquired on the 20th of Julyv(and ready for its intended use as at this date) would most likely be depreciated starting on the 1st of August. _______ A change in the depreciation method, useful life or residual value of a PPE is accounted for retrospectively.
The following list depicts several of the sample fair value measurements. For each asset or liability listed below, identify its likely fair value hierarchy level and explain your rational. Likely fair value hierarchy level: Derivative assets and liabilities, futures contract for purchase of 5,000 bushels of corn. Marketable equity securities Measurement of exit or disposal cost obligations Impairments of property, plant, and equipment Investment in a private company, such as the private company introduced in the previous
MNO Ltd adopts fair value for subsequent measurement of its intangible assets. An intangible with an estimated useful life of 9 years was acquired on 1 January 2012 for GHC90,000. It was revalued to GHC108,800 on 31 December 2012 and the revaluation surplus was correctly recognized on that date. As at 31 December 2013, the asset was revalued at GHC64,000. Required: State the accounting treatment required in 2012 and 2013 financial statements
_____ Which of the following statements is (are) true regarding the current (2020) US GAAP accounting treatment for intangible assets? Any patent that is reported on the balance sheet should be amortized over a period no longer than the patent’s remaining legal life. A firm may report the value of an internally generated brand on the firm’s balance sheet as long as the firm obtains an “independent appraisal” of the brand value from a brand consulting firm. BOTH statements A and B are true. None of the above statements are true.