Hey guys I need help answering this assignment for Intermediate Financial Accounting 1. Thanks!

Assignment 5 Question #1 (10 marks) 1) Which statement is not correct about strategic investments? A) Proportionate consolidation is used for joint ventures because of the presence of joint control. B) Proportionate share of the investee's assets is included in the joint venturer's balance sheet. C) Consolidation effectively results in two legal entities being reported as one economic unit. D) The fair value through profit or loss method is used for strategic investments. 2) Which statement is correct about an available-for-sale investment? A) The investment is reported at historical cost. B) Changes in fair value are recorded in OCI. C) These investments are acquired for selling in the near term. D) Changes in fair value are recorded in income. 3) On January 1, 2011, BigBen purchased a machine, incurring the expenditures listed below. The machine had an estimated useful life of 10 years, and BigBen uses straight-line depreciation for its equipment. Invoice cost of machine Shipping costs paid Preparing concrete platform to support machine Testing of machine prior to general use $100,000 15,000 10,000 30,000 What amount should be capitalized as the cost of the machinery for 2011? A) $100,000 B) $110,000 C) $115,000 D) $155,000 4) How should $45,000 spent to obtain greater productive efficiency for a machine with a carrying value of $80,000 be accounted for? A) Capitalized, then depreciated during current and subsequent periods. B) Expensed in the period in which the cost occurs. C) Charged to accumulated depreciation with no change in the depreciation rate. D) Charged to retained earnings. 5) On March 1, 2012, Pear Company (PC) had been renting its office building for several years and decided to have a new office building constructed. On April 1, 2012, it acquired land with an abandoned warehouse on it for $100,000. Other costs included: Demolition of warehouse Legal fees for purchase of land Construction costs of new building Proceeds from salvage of warehouse materials Installation of wiring and plumbing fixtures Architectural fees 20,000 2,400 400,000 4,000 16,000 24,000 How much will be capitalized to 'land' in fiscal 2012? A) $100,000 B) $102,400 C) $118,400 D) $124,000 6) In 2011, Waverly Corp. set up a new manufacturing facility in Nova Scotia. To encourage Waverly to set up its factory, the province provided equipment with a fair value of $250,000 and an estimated useful life of 15 years using straight-line depreciation. What journal entry would be required to record the equipment contribution in fiscal 2011, using the gross method? A) A credit to donation revenue of $250,000. B) A credit to other comprehensive income - donated assets of $250,000. C) A credit to deferred income of $250,000. D) A credit to property, plant and equipment for $250,000. 7) Ronald exchanged similar assets with Silver Company in a transaction without commercial substance. Ronald gave up equipment that had a net book value of $47,000 (fair value $49,000) and Silver exchanged equipment with a net book value of $36,000 (fair value $35,000). What is the correct value at which Ronald should record the new equipment? A) $35,000 B) $36,000 C) $47,000 D) $49,000 8) Mathew Corp exchanged similar assets with Simone Company in a transaction with commercial substance. Mathew gave up equipment that had a net book value of $47,000 (fair value $49,000) and Simone exchanged equipment with a net book value of $36,000 (fair value $35,000). What is the correct value at which Mathew should record the new equipment? A) $35,000 B) $36,000 C) $47,000 D) $49,000 9) Welcome Corporation purchased equipment for $267,000. The equipment is estimated to have a useful life of 10 years and a residual value of $27,000. Welcome uses straight-line depreciation and has a December 31 year end. On January 1, 2012, the net book value of the equipment is $211,000. What is the date of purchase of the equipment? A) January 1, 2008 B) September 1, 2008 C) September 30, 2008 D) September 1, 2009 10) Fisher Corporation has the following investments at December 31, 2012: Historical cost Shares of ABC Bonds of Brooke (purchased at par value) Shares of CooksTown (Fisher holds 35% of the outstanding voting shares of CooksTown) Shares of Davenport 25,000 10,000 Fair value Sept 30, 2011 15,000 12,000 Fair value Sept 30, Fair value 2012 Dec 31, 2012 25,000 30,000 11,000 12,500 12,000 18,000 16,000 16,000 18,000 20,000 19,000 19,000 If Fisher classifies its investment in Brooke as held to maturity, what amount will be reported in Fisher's 2012 year-end balance sheet? A) $10,000 B) $11,000 C) $12,000 D) $12,500 Question #2 (4 marks) Classify each of the following items into one of the seven categories of financial assets relevant for financial reporting purposes. Select the category that best suits the situation given. Question #3 (3 marks) On January 1, 2012, CC Company acquired 60,000 shares of RR Limited at $5 per share, representing 20% of RR's outstanding voting shares. On July 31, 2012, RR declared and paid a dividend of $1 per share. RR's net income for 2012 was $2,800,000. On December 31, 2012, the shares of RR were trading on the Toronto Stock Exchange at $16 per share. Requirement: Provide the journal entries on CC's books relating to its investment in RR, assuming that CC classifies RR as an associate. (Hint - there are three entries) Question #4 (3 marks) On January 25, 2011, Mulroney Ltd. purchased 100 common shares of RBC (Royal Bank of Canada) for $40 each. During the remainder of 2011, Mulroney received $2.10 per share in dividends and RBC's earnings per share were $5.50. The closing price of the shares on the fiscal year-end date of December 31, 2011 was $41. Requirements: Assume that Mulroney classifies the investment as available for sale. a. At what value should Mulroney report the RBC shares on its December 31, 2011 balance sheet? b. How much income should Mulroney report in 2011 in relation to these shares? c. How much other comprehensive income (OCI) should Mulroney report in 2011 in relation to these shares? Question 5 (5 marks) On March 31, 2011, a machine costing $3,000,000 was acquired. The company estimates that the asset will have an estimated useful life of five years and a residual value of $450,000. On April 1, 2016, the asset is sold for $550,000. The company uses straight-line depreciation. The company has a December 31 yearend, and records partial depreciation in the year of acquisition or disposal based on the number of months the asset is available for use in the year. Requirements: Prepare the entries to record depreciation expense for 2011 and 2012, and all entries required for 2016 as they relate to this asset