INTERMEDIATE ACCOUNTING
8th Edition
ISBN: 9780078025839
Author: J. David Spiceland
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 20, Problem 20.8Q
To determine
Accounting changes:
Accounting changes are the alterations made to the accounting methods, accounting estimates, accounting principles (or) the reporting entity.
To find out: The Changes in the accounts of D Incorporation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Which of the following statements concerning intangibles is true?
a. a copyright should be considered an intangible with an indefinite lifeb. organization costs must be expensed as incurredc. a patent should be amortized over the shorter of the inventor’s life or its economic lifed. the registration of a trademark or tradename lasts for 20 years and is nonrenewable
A company purchased a patent 4 years ago, and was amortizing thatpatent over a 10-year useful life. In the current year, the companydetermined the patent had become worthless. The write-off of thepatent asset in the current year is an example of which of the followingexpense recognition principles?a. associating cause and effectb. immediate consumptionc. systematic and rational allocationd. objectivity
On January 1, 2005, Mambusao Company bought a trademark from Panitan Company
for P6,000,000. Mambusao retained an independent consultant who estimated the
trademark's life to be indefinite. Its carrying amount in Panitan's accounting records
was P4,000,000. In Mambusao's December 31, 2005 balance sheet, what amount
should be reported as trademark?
a.
6,000,000
b.
5,700,000
c.
3,800,000
d.
3,600,000
Chapter 20 Solutions
INTERMEDIATE ACCOUNTING
Ch. 20 - Prob. 20.1QCh. 20 - Prob. 20.2QCh. 20 - Prob. 20.3QCh. 20 - Lynch Corporation changes from the...Ch. 20 - Prob. 20.5QCh. 20 - Most changes in accounting principles are recorded...Ch. 20 - Prob. 20.7QCh. 20 - Prob. 20.8QCh. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...
Ch. 20 - Prob. 20.11QCh. 20 - Describe the process of correcting an error when...Ch. 20 - Prob. 20.13QCh. 20 - If it is discovered that an extraordinary repair...Ch. 20 - Prob. 20.15QCh. 20 - Prob. 20.16QCh. 20 - Prob. 20.17QCh. 20 - BE 20–1
Change in inventory methods
LO20–2
In...Ch. 20 - Prob. 20.2BECh. 20 - Prob. 20.3BECh. 20 - Prob. 20.4BECh. 20 - Prob. 20.5BECh. 20 - Prob. 20.6BECh. 20 - Prob. 20.7BECh. 20 - Prob. 20.8BECh. 20 - Prob. 20.9BECh. 20 - Prob. 20.10BECh. 20 - Prob. 20.11BECh. 20 - Prob. 20.12BECh. 20 - Prob. 20.1ECh. 20 - Prob. 20.2ECh. 20 - Prob. 20.3ECh. 20 - Prob. 20.4ECh. 20 - Prob. 20.5ECh. 20 - FASB codification research LO202 Access the FASB...Ch. 20 - Prob. 20.7ECh. 20 - Prob. 20.8ECh. 20 - Prob. 20.9ECh. 20 - Prob. 20.10ECh. 20 - Prob. 20.11ECh. 20 - Prob. 20.12ECh. 20 - Prob. 20.13ECh. 20 - Prob. 20.14ECh. 20 - Prob. 20.15ECh. 20 - Prob. 20.16ECh. 20 - Prob. 20.17ECh. 20 - Classifying accounting changes LO201 through...Ch. 20 - Prob. 20.19ECh. 20 - Prob. 20.20ECh. 20 - Prob. 20.21ECh. 20 - Prob. 20.22ECh. 20 - Prob. 20.23ECh. 20 - Prob. 20.24ECh. 20 - Classifying accounting changes and errors LO201...Ch. 20 - Prob. 1CPACh. 20 - Prob. 2CPACh. 20 - Prob. 3CPACh. 20 - Prob. 4CPACh. 20 - Prob. 5CPACh. 20 - Prob. 6CPACh. 20 - Prob. 7CPACh. 20 - Prob. 8CPACh. 20 - Prob. 9CPACh. 20 - Prob. 10CPACh. 20 - Prob. 11CPACh. 20 - Prob. 12CPACh. 20 - Prob. 13CPACh. 20 - Prob. 14CPACh. 20 - Prob. 15CPACh. 20 - Prob. 1CMACh. 20 - Prob. 2CMACh. 20 - Prob. 3CMACh. 20 - Prob. 20.1PCh. 20 - Prob. 20.2PCh. 20 - Prob. 20.3PCh. 20 - Prob. 20.4PCh. 20 - Prob. 20.5PCh. 20 - Prob. 20.6PCh. 20 - Prob. 20.7PCh. 20 - Prob. 20.8PCh. 20 - Prob. 20.9PCh. 20 - Prob. 20.10PCh. 20 - Prob. 20.11PCh. 20 - Prob. 20.12PCh. 20 - Prob. 20.13PCh. 20 - Prob. 20.14PCh. 20 - Prob. 20.15PCh. 20 - Prob. 20.16PCh. 20 - Prob. 20.17PCh. 20 - Prob. 20.1BYPCh. 20 - Prob. 20.2BYPCh. 20 - Prob. 20.3BYPCh. 20 - Prob. 20.4BYPCh. 20 - Prob. 20.5BYPCh. 20 - Prob. 20.6BYPCh. 20 - Analytic Case 20–8
Various changes
LO20–1 through...Ch. 20 - Prob. 20.9BYPCh. 20 - Prob. 20.10BYPCh. 20 - Prob. 20.11BYPCh. 20 - Prob. 20.12BYP
Knowledge Booster
Similar questions
- Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha recorded goodwill of $100,000 related to the purchase. Since that timethe company has not considered the goodwill to be impaired. However, at the end of 2019, Blaha decides to evaluate the goodwill for impairment because of technological changes in the industry. Husker (which is considered a reporting unit of Blaha) has a book value (including the goodwill) of $800,000. Blaha estimates that the fair value of Husker is $720,000, of which it allocates $660,000 to Husker, identifiable assets and liabilities. 1. Prepare the journal entry (if any) for Blaha to record the impairment of its goodwill at the end of 2019. 2. Next Level Would any additional impairment be required? 3. Assume that Blaha uses IFRS and has estimated the recoverable amount of Husker (which qualifies as a cash-generating-unit) to be…arrow_forwardThe following five independent questions relate to the GIANTS Co, whose reporting year ends on 12/31. Giants Co developed a trademark internally, incurring the following costs on 1/1/18: Design Registration $282,000 $132,000 $92,000 Research/Development On 1/1/20, Giants Co acquired a trade name for $498,000. At the time of development (1/1/18) and acquisition (1/1/20), Giants Co estimated that the economic life of each asset would be 12 years. On 1/1/24, Giants Co successfully defended the trade name in a legal battle at a cost of $21,700. As a result, the economic life was adjusted to extend through the year 2032. Also on this day, Giants Co has determined that the trademark would have an unlimited capacity to produce cash flows. ** REQUIRED: 1) Determine the following: a) TOTAL amount of amortization expense reported FYE 12/31/23. b) TOTAL amount of amortization expense reported FYE 12/31/24. c) carry value of the Trademark at 12/31/24. d) carry value of the Trade Name at 12/31/24.arrow_forwardBlossom Electric Inc. has the following amounts included in its general ledger at December 31, 2023: Organization costs Purchased trademarks Development phase activities (meet all six development phase criteria) Deposits with advertising agency for ads to promote goodwill of company Excess of cost over fair value of identifiable net assets of acquired subsidiary Cost of equipment acquired for research and development projects; the equipment has an alternative future use Costs of researching a secret formula for a product that is expected to be marketed for at least 20 years Payment for a favourable lease; lease term of 10 years $34,700 Total amount of intangible assets to be reported 18,500 31,500 7,700 81,100 125,300 75,900 14,900 (a) Based on the information provided, calculate the total amount for Blossom to report as intangible assets on its statement of financial position at December 31, 2023. Assume Blossom uses IFRS to prepare its financial statements.arrow_forward
- Which of the following companies has a disclosure for which FASB ASC 450 applies, but FASB ASC 275 does not? O Comfort House has a loss contingency at the financial statement date, and it is remotely A. possible that the estimate for this contingency will change by a material amount within the next year. B. The Garden Foundation has an asset on which the depreciation will be recalculated due to the life of the assets being extended. C. The Summer Group has equipment that will be written down. D. The Winter Group has an intangible asset that needs to be written down.arrow_forwardI'm having problems finding the answer for: b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.arrow_forwardPelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pelota allocated the resulting goodwill to its three reporting units: R-one, R-two, and R-three. Pelota opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of its reporting units: Items Tangible assets Trademark Computer software Unpatented technology Licenses Copyrights Goodwill Liabilities Carrying Amounts R-one $215,500 257,000 154,500 Goodwill impairment loss 190, 250 (35,000) R-two $261,000 R-one 232,500 100,000 187,550 The total fair values for each reporting unit (including goodwill) are $773,950 for R-one, $736,450 for R-two, and $743,500 for R-three. date, Pelota has reported no goodwill impairments. R-three $158, 250 Required: How much goodwill impairment should Pelota report this year for…arrow_forward
- Please refer to the picture. Remember to include "1." and "2." in the date sectionarrow_forwardOne company acquired another in a transaction in which $100,000 of the acquisition price is assigned to goodwill. Several years later, a worksheet is being produced to consolidate these two companies. How is the reported value of the goodwill determined at this date?arrow_forwardPlease look at the picturearrow_forward
- DRS Corporation changed the way it depreciates its computers from the sum-of-the-year’s-digits method to thestraight-line method beginning January 1, 2018. DRS also changed its estimated residual value used in computingdepreciation for its office building. At the end of 2018, DRS changed the specific subsidiaries constituting thegroup of companies for which its consolidated financial statements are prepared.Required:1. For each accounting change DRS undertook, indicate the type of change and how DRS should report thechange. Be specific.2. Why should companies disclose changes in accounting principles?arrow_forwardRobinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the net assets purchased equals $2,750,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,520,000 of goodwill. Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of goodwill that Robinson records at the purchase date? Goodwillarrow_forwardA purchased patent that has a remaining legal life of 15 years should be Amortized over 20 years O Amortized over its useful life if less than 15 years. O Amortized over 15 years regardless of the useful life. O Expensed in the year of acquisition Good will should * O Be amortized against retained earnings. Not be amortized but tested for impairment at least annually. Be amortized systematically over the useful life. O Be written off against income. Which is incorrect concerning the criterion of control by the enterprise of the intangible asset? * Market and technical knowledge may give rise to future economic benefits which can be controlled by the enterprise if the knowledge is protected by legal rights such as copyright. The capacity of the enterprise to control the economic benefits from an intangible asset would normally stem from legal rights that are enforceable in a court of law. The skill of employees arising out of the benefits of training costs can be recognized as…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning