MaIn 2022, due to a change in marketing forecasts, A Corp. reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2022 would have been $38 million higher had the new life been ctax rate is 40%. Barney's retained earnings as of December 31, 2013, would beUnaffectedOverstated by $15.20 millionOverstated by $22.40 millionOverstated by 5 38 million

Step 1: Step 2: Step 3: Step 4:

Answered: Ma In 2022, due to a change in…

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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Altima Corporation discovered an error in its 2020 financial statements. The firm recorded $4,200,000 in depreciation expense instead of record $4,500,000. Altima has a constant tax rate of 40% and reports 3 years of comparative income statements and 2 years of comparative balance sh- in its annual report. Ignoring the income tax effect, what is the correct journal entry to record the prior-period adjustment? O Depreciation expense Accumulated Depreciation O Retained Earnings 300,000 Income Tax Payable Accumulated Depreciation Retained Earnings O Accumulated Depreciation 300,000 Retained Earnings Accumulated Depreciation 300.000 estion 22 300,000 300,000 120.000 180,000 300,000 300,000
Truffle Inc. acquired a patent on January 1, 2015 for $7,800,000. It was expected to have a 10 year life and no residual value. Truffle uses straight-line amortization for its patents. On December 31, 2018, the expected future cash flows from the patent are $518,000 per year for the next six years. The present value of these cash flows, discounted at Truffle’s market interest rate, is $2,120,000. What amount, if any, of impairment loss will be reported on Truffle’s 2018 income statement?
A company provided a special promotion of zero-interest financing for 3 years on its products. The company received a $306,000 zero-interest-bearing note on January 1, 2020. The company imputes an 8% interest rate on this zero-interest note transaction. What is the total amount of revenue to be recognized in 2020? (Add sales revenue and interest revenue.) (Present value factor for 8% and 3 years, single sum is 0.79. Please do not use your own present value tables or financial calculator.) (Please do not round your answer in any part of the computation.)
XYZ bought an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The fair value of the equipment on December 31, 2016 is $2,000,000, and revised residual value of $300,000. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Required: 1. Revaluation surplus to be recognized on the year of revaluation 2. Carrying amount of the equipment on December 31, 2017
On December 31, 2015, Bit Co. had capitalized costs for a new computer software product with an economic life of five years. Sales for 2016 were 30 percent of expected total sales of the software. At December 31, 2016, the software had a fair value equal to 90 percent of the capitalized cost. What percentage of the original capitalized cost should be reported as the net amount in Bit’s December 31, 2016, balance sheet? a. 70% b. 72% c. 80% d. 90%
At the end of 2020, Bonita Company is conducting an impairment test and needs to develop a fair value estimate for machinery used in its manufacturing operations. Given the nature of Bonita's production process, the equipment is for special use. (No secondhand market values are available.) The equipment will be obsolete in 2 years, and Bonita's accountants have developed the following cash flow information for the equipment. Year 2021 2022 2022 Net Cash Flow Estimate $5,440 9,500 $(460) 2,180 3,800 Scrap value $530 970 Probability Assessment 40% Click here to view factor tables 60% 20% 60% 20% 50% 50% Using expected cash flow and present value techniques, determine the fair value of the machinery at the end of 2020. Use a 6% discount rate. Assume all cash flows occur at the end of the year. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Sair Fair value of the machinery at the end of 2020 $
On January 1, 2020 Machu, Inc. acquired mining rights near Cordillera for P20,000,000 for 10 years, there was no cash payment, instead Mach issued a 2-year non-interest bearing note. Since the Company's inception in 1956, the Company continued to restore the lands affected by its mining activities. Management Expects restoration costs to be P2,000,000. Discount rates for similar instruments are as follows: 8% for 2 years and 12% for 10 years. On December 21, 2020, Machu was being sued by one of another corporation over a patent infringement. The Company's legal counsel finds it probable that Machu will be liable for P2,000,000 damages. Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause How much is the total provisions taken to the statement of comprehensive income as of December 31, 2020 (round off your answers to the nearest whole number)?
In singapore pinku Ltd sold a machine in the year ended 30 September 2023 for $23,000. This machine was purchased for S$60,000 in the year ended 30 September 2021 and it was depreciated over 5 years though CA was claimed under S19(1) over 3 years. What is the balancing adjustment for the above sale? A. Balancing Charge of $3,000B. Balancing Charge of $13,000C. BalancingAllowanceof$3,000 D. Balancing Allowance of $13,000
N1. Account
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