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Continuing Cases
Target Case
• LO10–1, LO10–5
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This material is also available under the Investor Relations link at the company’s website (www.target.com).
Required:
1. What categories of property, plant, and equipment and intangible assets does Target report in its January 30, 2016
2. How much cash was used in the fiscal year ended January 30, 2016, to purchase property and equipment? How does this compare with purchases in previous years?
3. Do you think a company like Target would have significant research and development costs or capitalized interest related to self-constructed assets? Explain.
4. What is Target’s fixed-asset turnover ratio for the fiscal year ended January 30, 2016? What is the ratio intended to measure?
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Chapter 10 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
- Ex 17.6 The Gloaming company incurred the following costs during a period in relation to a specific area of interest and wants to capitalise its E & E costs on an area of interest method.The following costs were incurred:Cash paid to acquire seismic study from government(GST exempt) 3,000Cash paid to acquire exploration rights(GST exempt) 10,000Cash paid to acquire fencing materials for an area-of-interest, including GST of $80 880Contractor fees for labour to set up the fencing, including GST of $50550Contractor fees for exploratory drilling, including GST $2,50027,500Hire of drilling equipment for contractor use, including GST of $5005,500Salary of project manager 60,000Stationery and other office supplies, including GST $30 330Gloaming company non executive directors fees paid 160,000Required:Which of the above costs can be capitalised as E& E assets?arrow_forward4 4 Skipped eBook Check my won In comparing U.S. GAAP and International Financial Reporting Standards (IFRS) with regard to a basis for measurement of a noncontrolling interest, which of the following is true? Multiple Choice O U.S. GAAP requires acquisition-date fair value measurement and IFRS requires the acquiree's identifiable net asset fair value measurement. О U.S. GAAP and IFRS both require acquisition-date fair value measurement. О U.S. GAAP and IFRS both require the acquiree's identifiable net asset fair value measurement.arrow_forwardQUESTION 3 MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the…arrow_forward
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- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
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