15) - 15) Lake Co. receives nonrefundable advance payments with special orders for containers constructed to customer specifications. Related information for 2018 is as follows ($ in millions): Customer advances balance, Dec. 31, 2017 Advances received with 2018 orders Advances applicable to orders shipped in 2018 Advances from orders canceled in 2018 $ 110 195 180 What amount should Lake report as a current liability for advances from customers in its Dec. 31, 2018, balance sheet? A) SO. B) $80 million. C) $170 million. D) $125 million. 16) 16) All of the following but one represent collections for third parties. Which one of the following is not a collection for a third party? A) Customer deposits. B) Social security taxes deductions. C) Employee insurance deductions. D) Sales tax payable. 17) 17) Peterson Photoshop sold $1,000 in gift cards on a special promotion on October 15, 2018, and sold $1,500 in gift cards on another special promotion on November 15, 2018. Of the cards sold in October, $100 were redeemed in October, $250 in November, and $300 in December. Of the cards sold in November, $150 were redeemed in November and $350 were redeemed in December. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. At 12/31/2018, Peterson would show an deferred revenue account for the gift cards with a balance of: A) $1,000 B) $1,500. C) SO. D) $1,350. 18) - 18) When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry includes: A) A debit to a revenue and a credit to an asset account. B) A debit to a revenue and a credit to a liability account. C) A debit to a liability and a credit to a revenue account. D) A debit to an asset and a credit to a revenue account 19) 19) In May of 2018, Raymond Financial Services became involved in a penalty dispute with the EPA. At December 31, 2018, the environmental attorney for Raymond indicated that an unfavorable outcome to the dispute was probable. The additional penalties were estimated to be $770.000 but could be as high as $1,170,000. After the year-end, but before the 2018 financial statements were issued, Raymond accepted an EPA settlement offer of $900,000. Raymond should have reported an accrued liability on its December 31, 2018, balance sheet of: A) $770,000. B) $1,170,000. C) $970,000. D) $900,000 20 20) Short-term obligations can be reported as long-term liabilities if: A) The firm has a long-term line of credit. B) The firm intends to and has the ability to refinance as long-term. C) The firm has the ability to refinance on a long-term basis. D) The firm has tentative plans to issue long-term bonds. 21) - 21) of the following, which typically would not be classified as a current liability? A) Rent revenue received in advance. B) Estimated liability from cash rebate program. C) A six-month bank loan to be paid with the proceeds from the sale of common stock. D) A long-term note payable maturing within the coming year. 22) 22) Kline Company refinanced current debt as long-term debt on January 5, 2019. Kline's fiscal year ended on December 31, 2018, and its financial statements will be issued sometime in early March 2019. Under IFRS, how would Kline classify the debt on its December 31, 2018, balance sheet? A) In the mezzanine" between current and noncurrent liabilities. B) As a current liability. C) Kline would not classify the debt as current or noncurrent, but rather would write a disclosure note explaining the circumstances. D) As a noncurrent liability