Case 5: Fantastic Designs Company owns what is referred to as the transparent office building.The structure is made of glass walls and is largely unoccupied and most floors are unfinished internally.
The building cost Fantastic $10 million to build and was the last building completed during the downtown building boom in Big City USA. It is now 5 years old, with acarrying amount of $9 million.
The building is currently less than 30 percent occupied, but management believes its carrying amount will be recovered over the remainder of the building's expected 50-year life. Current vacancy rates in Big City USA are such that there is a 15-year supply of equivalent vacant space available in the area.
Required: List the specific standards according to the FASB Codification and detail the transaction recording for each of the following questions.
1.Should the building that Fantastic owns be regarded as an "impaired asset" and its carrying amount be written down? If so, to what amount should it be written down?
2.What additional factors would you like to understand before advising Fantastic, who is now a client of your accounting firm, and what kind of value-added advice could you provide them?
Section 6. 1/6.2 Simple and Compound Interest P Score: 15.8/21 21/21 answered X Question 15 Score on last try: 0 of 1 pts. See Details for more. > Next question You can retry this question below Find how much money needs to be deposited now into an account to obtain $9,500 (Future Value) in 6 years if the interest rate is 7.5% per year compounded annually (1 times per year). The final amount is $ 0.075 X Round your answer to 2 decimal places Question Help: DVideo Submit QuestionUse the following to answer questions 8-9: Table: Balance Sheet Assets Liabilities Reserves $20,000 Deposits Loans 8. (Table: Balance Sheet) Refer to the information in the balance sheet. If the reserve ratio is 25%, deposits are: A) $5,000. B) $15,000. C) $60,000. D) $80,000. 9. (Table: Balance Sheet) Refer to the information in the balance sheet. If the reserve ratio is 25%, loans are: A) $5,000. $15,000. C) $60,000. D) $80,000.Answer the following questions based on the assumption that you are dealing with an international bank and these are the prices they have quoted you (show your calculation where appropriate) 1. You want to purchase EUR for delivery in six months. The rate you will pay is (2 points) 2 You want to purchase JPY for delivery in three months. You rate you will pay IS (2 points) 3. You want to sell CAD for delivery in one month. The rate you will sell for is (2 points) 4. You want to sell EUR for spot delivery. The rate you will sell at is (1 point) 6, You wish to purchase EUR using a futures contract for December 2014 delivery. The rate for the contract is (1 point) 6. You wish to sell EUR using a futures contract for June 2015. The rate for the contract is (1 point) 7 Based on the value of the March 2015 futures contract, does the market expect the USD to appreciate or depreciate against the Euro in the spot market? (2 points) 8. Based on the value of the September 2014 futures contract, does the market opect the USD to appreciate or depreciate against the EUR in the spot market? OH4. All goods in an economy are classified as agriculture (good 1) and manufacturing (good 2). These data are available for a country in the cases of autarky and of free trade. Price at Exports Imports Production Production autarky under free under free under under free trade trade autarky trade good 1 2 100 20 300 320 good 2 10 20 50 150 140 Calculate the gains from free trade, as the change to the welfare from autarky to free trade evaluated at autarky prices. Report the gains from free trade as a percentage of initial GDP (ie. total expenditures at autarky).Question 7 5 pts What is the method(s) not used in assessing Project Risk? Sensitivity Analysis Break Even Analysis @. Scenario Analysis Cost Benefit Analysis Question 8 5 pts When calculating the Break Even Analysis, one needs to subtract the FW of the cash inflows from the PW of the cash outflows. True False D Question 9 5 pts Scenario Analysis usually does not consider; Worst Case Scenario Do Nothing Scenario Most Likely Case Scenario Best Case Scenario O
