Delta Company is preparing its opening IFRS statement of financial position on January 1, 2019. Under its previous GAAP, Delta had capitalized all development costs of $80,000. Under IFRS, only $30,000 of the costs related to a patent were incurred after the project met economic viability thresholds. Prepare the entry (if any) needed to record this adjustment at the date of transition

1. Patents debit 50,000 and Retained Earnings credit 50,000

2. Retained Earnings debit 80,000 and Patents credit 80,000

3. None of the other answers.

4. Retained Earnings debit 50,000 and Patents credit 50,000

Beta Co. started on Jan.1, 2020 to establish a building, at the same date the Co. borrowing a 12% long term loan $50 million to finance the process of establishing the building, by the end of 2020 the building did not completed yet. The total cost of establishing the building was $80 million paid in cash at Dec. 31, 2020, then the cost of building in the balance sheet on Dec. 31, 2020 is

1. None of the other answers.

2. $86

3. $80

4. $6

Alpha company received government grants equipment equal $400,000 on Jan. 1, 2020, the useful life of the equipment is 5 years. Prepare the required entry to record the transaction on Jan. 1, 2020 and on Dec. 31, 2020

1. Equipment debit 80,000 and Government deferred revenue credit 80,000

2. Equipment debit 400,000 and Government deferred revenue credit 400,000

3. Government deferred revenue debit 400,000 and Equipment credit 400,000

4. None of the other answers.

Stengel plc is preparing its opening IFRS statement of financial position on January 1, 2019. Under its previous GAAP, Stengel used the LIFO inventory method. Under LIFO, its inventory is reported at 250,000; under FIFO, which Stengel will use upon adoption of IFRS, the inventory is valued at 230,000. Prepare the entry (if any) needed to record this adjustment at the date of issuance

1. Retained Earnings debit 20,000 and Inventory credit 20,000

2. None of the other answers.

3. Inventory debit 15,000 and Retained Earnings credit 15,000

4. Inventory debit 20,000 and Retained Earnings credit 20,000