1. Quick Company acquired a piece of equipment in Year 1at a cost of $100,000. The equipment has a 10 year estimate life, zdro salvage value, and is depreciated on a straight-line basis. Technological innovations take place in the industry in which the company operates in Year 4. Quick gathers the following information for this piece equipment at the end of Year 4: Expected future undiscounted cash flows from continued use $59,000 Present Value of expected future cash flows from continue use $51,000 Net Selling price in the used equipment market $50,000 At the end of year 6, it is discovered that the technological innovations related to this equivalent are not as effective as the first expected. Quick estimates the following for this piece of equipment at the end of Year 6: Expected future undiscounted cash flows from continued use $50,000 Present Value of expected future cash flows from continue use $44,000 Net Selling price in the used equipment market $42,000 Required : A: Discuss whether Quick Company must conduct an impairment test on this piece of equipment at December 31, Year 4. B: Determine the amount at which Quick Company should carry this piece of equipment on its balance sheet at Dec 31, Year4; December 31, Year5; and December 31, Year 6. Prepare any related journal entries. 2. The Baton Rouge Company compiled the following information for the current year related to its defined benefit pension plan: Present Value of defined benefit obligation, beginning of year $1,000,000 Fair Value on plan assets, beginning of year $800,000 Service cost, current year $50,000 Actuarial gain, current year 8,000 Actual return on plan assets, current year $55,000 Effective yield on high-quality corporate bond, current year 5% Required: Determine the amount of defined benefit cost for the current year to be reported in (a) net income (b) other comprehensive income. 3. SC Masterpiece Inc. granted 1,000 stock options to certain sales employees on January 1, Year 1. The options vest at the end of three years (cliff vesting) but 1 are conditional upon selling 10,000 cases of barbecue sauce over three-year service period. The grant-date fair value of each option is $30. No forfeitures are expected to occur. The company is expensing at the cost of options on a straight-line basis over the three-year period at $10,000 per year (1,000 options *$30 /3). On January 2, Year 2, the company's management believes the original sales target of 20,000 units will not be met because only 5,000 cases were sold in year 1. Management modifies the sales target for the options to vest to 15,000 units, which it believes is reasonably achievable. The fair value of each option at January 1, Year 2, is $28. Required: Determine the amount to be recognized as compensation expense in Year1, Year 2, and Year 3 under (a) IFRS and (b) US GAAP. Prepare the necessary journal entries. 4. Based on the few different exhibits in Ch.6: Required: Explain the main areas you would focus on in comparing financial statements prepared by companies in China, Japan, and Mexico with those prepare by companies using IFRS.