Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 20, Problem 3C
1.
To determine
Identify whether R Tech considers server-XB22 as an identified asset or not.
2.
To determine
Identify whether Corporation B considers server-XB22 as an identified asset or not
3.
To determine
Identify whether the server-XB22 as an identified asset or not for the given situation.
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(c) Ugreen Computer Sdn. Bhd. (Ugreen), a software developer company, enters into a contractwith Tineco Trading to transfer a software license, perform an installation service and providesoftware updates and technical support (using online and telephone) for a two-year period.Ugreen sells the license, installation service and technical support separately to other customers.The installation service includes the installation of software with the customer’s logo whichappears on the computer screen. The installation service may be performed by other entitiesand does not significantly modify the software. The software remains functional even withoutthe updates and the technical support.Identify how many performance obligation(s) are there in the contract above and explain thereason(s) for your answers.
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Umuhoza Corporation wishes to exchange a machine used in its operations. Umuhoza has received the following offers from other companies in the industry.
Uwase Company offered to exchange a similar machine plus Rwf 57,500. (The exchange has commercial substance for both parties.)
Uwimana Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
Muhoozi Company offered to exchange a similar machine, but wanted Rwf 7,500 in addition to Umuhoza’s machine. (The exchange has commercial substance for both parties.)
In addition, Umuhoza contacted Orinette Corporation, a dealer in machines. To obtain a new machine, Holyfield must pay Rwf 232,500 in addition to trading in its old machine.
Umuhoza Uwase Uwimana Muhoozi Orinette
Machine cost Rwf 400,000 Rwf 300,000 Rwf 380,000 Rwf 400,000 Rwf 325,000
Accum. Depreciation 150,000 112,500 71,000 187,500 –0–
Fair…
Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry.
1.
Dorsett Company offered to exchange a similar machine plus $23,000. (The exchange has commercial substance for both parties.)
2.
Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3.
Liston Company offered to exchange a similar machine, but wanted $3,000 in addition to Holyfield’s machine. (The exchange has commercial substance for both parties.)
In addition, Holyfield contacted Greeley Corporation, a dealer in machines. To obtain a new machine, Holyfield must pay $93,000 in addition to trading in its old machine.
Holyfield
Dorsett
Winston
Liston
Greeley
Machine cost
$160,000
$120,000
$152,000
$160,000
$130,000
Accumulated depreciation
60,000
45,000
71,000
75,000
–0–
Fair value
92,000
69,000…
Chapter 20 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 20 - Prob. 1GICh. 20 - List four potential benefits to the lessor of...Ch. 20 - Prob. 3GICh. 20 - What is a substitution right, and when does that...Ch. 20 - Prob. 5GICh. 20 - List the five criteria used to determine if a...Ch. 20 - Prob. 7GICh. 20 - Prob. 8GICh. 20 - Describe briefly the procedures followed by the...Ch. 20 - Owens Company leased equipment for 4 years at...
Ch. 20 - Describe the difference between how a lessee would...Ch. 20 - Prob. 12GICh. 20 - What is the basic difference between the...Ch. 20 - Why are compound interest concepts appropriate and...Ch. 20 - Describe briefly the accounting procedures...Ch. 20 - Prob. 16GICh. 20 - Prob. 17GICh. 20 - Which of the following should be included by the...Ch. 20 - East Company leased a new machine from North...Ch. 20 - Prob. 3MCCh. 20 - Fox Company, a dealer in machinery and equipment,...Ch. 20 - Fox Company, a dealer in machinery and equipment,...Ch. 20 - In the third year of a 6-year finance lease, the...Ch. 20 - Prob. 7MCCh. 20 - At its inception, the lease term of Lease G is 65%...Ch. 20 - Rent received in advance by the lessor for an...Ch. 20 - On August 1, 2019, Kern Company leased a machine...Ch. 20 - Next Level Keller Corporation (the lessee) entered...Ch. 20 - Use the information in RE20-1. Prepare the journal...Ch. 20 - Next Level Garvey Company (the lessee) entered...Ch. 20 - Use the information in RE20-3. Prepare the journal...Ch. 20 - Use the information in RE20-3. Prepare the journal...Ch. 20 - Montevallo Corporation leased equipment from Folio...Ch. 20 - Use the information in RE20-6. However, assume...Ch. 20 - Use the following information to decide whether...Ch. 20 - Use the information in RE20-3. Prepare the journal...Ch. 20 - Determining Type of Lease and Subsequent...Ch. 20 - Lessee Accounting with Payments Made at Beginning...Ch. 20 - Lessee Accounting Issues Sax Company signs a lease...Ch. 20 - Lessee Accounting for Finance Lease On January 1,...Ch. 20 - Prob. 5ECh. 20 - Lessor Accounting Issues Ramsey Company leases...Ch. 20 - Lessor Accounting with Receipts at End of Year...Ch. 20 - Lessor Accounting with Unguaranteed Residual Value...Ch. 20 - Lessor Accounting with Guaranteed Residual Value...Ch. 20 - Determining Type of Lease and Subsequent...Ch. 20 - Guaranteed and Unguaranteed Residual Values...Ch. 20 - Lessor Accounting Issues Rexon Company leases...Ch. 20 - Lessee and Lessor Accounting Issues Diego Leasing...Ch. 20 - Lessee and Lessor Accounting Issues The following...Ch. 20 - Lease Income and Expense Reuben Company retires a...Ch. 20 - Determining Type of Lease and Subsequent...Ch. 20 - Determining Type of Lease and Subsequent...Ch. 20 - Accounting for Leases by Lessee and Lessor Scupper...Ch. 20 - Lessee Accounting Issues Timmer Company signs a...Ch. 20 - Sales-Type Lease with Guaranteed Residual Value...Ch. 20 - Sales-Type Lease with Unguaranteed Residual Value...Ch. 20 - Sales-Type Lease with Receipts at End of Year...Ch. 20 - Initial Direct Costs and Related Issues On January...Ch. 20 - Various Lease Issues for Lessor and Lessee Lessee...Ch. 20 - Prob. 10PCh. 20 - Various Lease Issues Farrington Company leases a...Ch. 20 - Comprehensive Landlord Company and Tenant Company...Ch. 20 - Prob. 1CCh. 20 - Identified Asset A customer enters into a 3-year...Ch. 20 - Prob. 3CCh. 20 - Types of Leases On January 1, Hazard Company, a...Ch. 20 - Initial Direct Costs Efland Company leases...Ch. 20 - Prob. 6C
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