GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
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Chapter 11, Problem 22P
a.
To determine
Determine the appropriate accounting for this brand name for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP.
b.
To determine
Prepare the entry that the U.S. parent would make on the December 31, 2017, conversion worksheet to convert IFRS balances to U.S. GAAP.
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Aa.18.
Mikkeli OY acquired a brand name with an indefinite life in 2021 for 42,600 markkas. At December 31, 2020, the brand name could be sold for 35,600 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 44,870 markkas, and the present value of this amount is 34,600 markkas.
Assume that Mikkeli OY is a foreign company using IFRS and is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.
Required:
a. Prepare journal entries for this brand name for the year ending December 31, 2020, under (1) IFRS and (2) U.S. GAAP.
b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020 conversion worksheet to convert IFRS balances to U.S. GAAP.
Banco Company acquired a new machine on a delayed payment basis on August 1, 2018.
A down payment of P100,000 was made, with four monthly instalments of P250,000 to commence on September 1, 2018.
The machine's cash equivalent price was P 950 000. The entity spent and paid P 30 000 in installation fees.
What is the sum to be capitalised as the machine's cost?
Answer the following questions.(a) On May 1, 2017, Goldberg Company sold some machineryto Newlin Company on an installment contractbasis. The contract required five equal annualpayments, with the first payment due on May 1,2017. What present value concept is appropriate forthis situation?(b) On June 1, 2017, Seymour Inc. purchased a new machinethat it does not have to pay for until June 1, 2019.The total payment on June 1, 2019, will include bothprincipal and interest. Assuming interest at a 12% rate,the cost of the machine would be the total paymentmultiplied by what time value of money concept?(c) Costner Inc. wishes to know how much money itwill have available in 5 years if five equal amounts of$35,000 are invested, with the first amount investedimmediately. What interest table is appropriate forthis situation?(d) Megan Hoffman invests in a “jumbo” $200,000,3-year certificate of deposit at First Wisconsin Bank.What table would be used to determine the amountaccumulated at the end of…
Chapter 11 Solutions
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
Ch. 11 - Historically, what factors contributed to the...Ch. 11 - Nestl S.A. is a very large company headquartered...Ch. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - In general terms, how does IFRS for SMEs differ...Ch. 11 - Prob. 7QCh. 11 - What are three countries that do not allow...Ch. 11 - Prob. 9QCh. 11 - Prob. 10Q
Ch. 11 - Prob. 11QCh. 11 - What are the two extreme approaches that a company...Ch. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 18QCh. 11 - Prob. 19QCh. 11 - Even if all companies in the world were to use...Ch. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Which of the following is not a reason for...Ch. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Which of the following statements is true for a...Ch. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Parnell Company acquired construction equipment on...Ch. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Hirsch Company acquired equipment at the beginning...
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