3. Which of the following subsequent (post-balance sheet events) would require adjustment of the balance sheet amounts?a) Loss of plant as a result of fire.b) Fluctuations in the quoted market prices of available-for-sale securities held as an investment.c) Large sale of assets after year-end.d) Actual loss damages paid on a large lawsuit filed before year-end for which no adjustment was made at year-end becausethe amount was not reasonably estimable.e) None of the above.

The correct answer is:d) Actual loss damages paid on a large lawsuit filed before year-end for which…

Answered: 3. Which of the following subsequent…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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H1. Account
Hannam Co. decided to change from the declining-balance method of depreciation to the straight-line method effective 1 January 20X7. The following information was provided: Year 20X3* 20X4 20X5 20X6 Net Income as Reported $(31,800) 35,600 22,800 53,200 Excess of Declining-Balance Depreciation over straight- Line Depreciation $ 5,100 15,300 12,800 7,100 *First year of operations. The company has a 31 December year-end. The tax rate is 20%. No dividends were declared until 20X7; $10,300 of dividends were declared and paid in December 20X7. Income for 20X7, calculated using the new accounting policy, was $54,100. Required: Assuming that the change in policy was implemented retrospectively, present the retained earnings reconciliation that would appear in Hannam's 20X7 statement of changes in equity. (Negative amounts should be indicated by a minus sign.) Hannam Company Statement of Changes in Shareholder's Equity Retained Earnings Section Year Ended 31 December 20X7 Retained earnings, 1…
Reposting due to incorrect answers given. Help me with both please asap
5. During the end of the year, YGX Company presented the following information: Equipment Accumulated depreciation However, the equipment is found to be impaired due to obsolescence as well as physical damage. At year-end, the company has determined the following information related to the equipment: Undiscounted net cash inflows Fair value less cost of disposal Value in use or discounted net cash inflows a. 1,500,000 b. 2,000,000 9,000,000 3,500,000 What amount should be reported as impairment loss for the year? c. 500,000 d. 0 4,500,000 3,500,000 3,000,000
21 - Which of the following is not a method of depreciation.?A) Normal Depreciation MethodB) Incremental DepreciationC) Declining Balances MethodD) Provisional Depreciation MethodE) Extraordinary Method
In computing for the present value of a business or property on a liquidation basis, why is it necessary that the estimated net proceeds be discounted at a rate that reflects the risk involved back to the date of the original valuation?
34. Subject : - Accounting In 20X4, Fredup Inc. purchased a piece of equipment for $21,000. The equipment has a 7-year useful life and no residual value. The equipment was erroneously included as an expense in the year. The error was discovered in December 20X8. Required: Prepare the journal entry to record the adjustment in December 20X8. (Assume the company uses straight line depreciation, ignore taxes.)
3. S1: An entity shall measure a noncurrent asset or disposal group classified as held for sale at the lower of carrying amount and recoverable amount.S2: A noncurrent asset that is to be abandoned shall not be classified as held for sale because it is unlikely that the noncurrent asset will be sold within twelve months. A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true 4. In order for a noncurrent asset to be classified as held for sale, the sale must be highly probable, which requires the following, except * A. The asset must be actively marketed at a sales price that is reasonable in relation to the fair value. B. Presence of an active marketing program C. Marketing program or plan is unlikely to be significantly changed or withdrawn D. Commitment to a plan to sell the asset O E. None of them
7
Lynch Corporation changes from the sum-of-the-years’-digits method of depreciation for existing assets to the straight-line method. How should the change be reported? Explain.
Can you please explain to me how 7.4 question is solved please in detail.

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