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I want you to help me to solve these questions. I only have once attempt to do it. Please give me the right answer. Thanks
I want you to help me to solve these questions. I only have once attempt to do it. Please give me the right answer. Thanks
Testbank Question 11 Under the cost/amortized cost model, holding gains are not recognized at all. recognized in net income only when realized. recognized in other comprehensive income. recognized depending on management's intention. Testbank Question 32 Under the fair value through net income model, holding gains are recognized in either net income or other comprehensive income. recognized in net income only. ignored. recognized in other comprehensive income only. Testbank Question 39 At December 31, 2017, Escargot Corp. has the following equity securities (no significant influence) that were purchased earlier in 2017, its first year of operation: Security A B Totals Cost Market $ 40,000 $41,500 56,000 62,000 $ 96,000 $ 103,500 If the investments are being accounted for under the fair value through net income (FV-NI) model, the total book value of the investment accounts should remain unchanged. be decreased by $7,500. be increased by $7,500. be decreased by $16,000. Testbank Question 86 When the investor has control over the investee, the reporting model to be used is the equity method. cost model. consolidation model. market value model. Testbank, Question 1 According to the existing IFRS and the CICA Handbook Part II guidelines, which of the following is not an essential characteristic of a liability? It embodies a duty or responsibility. The transaction or event that obliges the entity has occurred. The obligation is enforceable on the other party. The entity has little or no discretion to avoid the duty. Testbank, Question 9 Stock dividends distributable should be classified on the income statement as an expense. statement of financial position as an asset. statement of financial position as a liability. statement of financial position as an item of shareholders' equity. Testbank, Question 14 Corporation income taxes payable must always be approved by an external auditor. are reviewed and approved by Canada Revenue Agency (CRA). also apply to proprietorships and partnerships. are always the same under GAAP and Canadian tax laws. Testbank, Question 68 Lee Kim Inc.'s most recent statement of financial position includes Cash................................................... $7,500 Accounts receivable............................ 10,000 Inventory............................................ 13,300 Plant and equipment (net)................. 73,700 Accounts payable............................... 14,000 Long-term bonds payable.................. 50,000 Common shares................................ 20,000 Retained earnings............................. 20,500 To two decimals, Lee Kim Inc. has a current ratio of .27. .48. 1.63. 2.20. Testbank, Question 4 The liability of shareholders is similar to the liability of the owners of a partnership. similar to the liability of the owner of a proprietorship. equal to an amount sufficient to satisfy all creditors. limited to their property or service invested in the corporation. Testbank, Question 26 Jesse Corp. owns 4,000,000 shares of James Corp. On December 31, 2017, Jesse distributed these shares as a dividend to its shareholders. This is an example of a property dividend. stock dividend. liquidating dividend. cash dividend. Testbank, Question 46 The dollar amount of a cash dividend to be paid is determined on the date of record. declaration . declaration or date of record, whichever is earlier. payment. Testbank, Question 51 On May 1, 2017, when the market value of Jay Ltd.'s common shares was $15 per share, the corporation had 100,000 no par value common shares issued and outstanding. On this day, Jay declared and issued a 15% common stock dividend. As a result of this stock dividend, Jay's total shareholders' equity increased by $225,000. decreased by $225,000. decreased by $15,000. did not change. Testbank, Question 1 Why has accounting for leases been controversial? Companies have structured leases in a way that the lease liabilities remain \"off-balance sheet\". All leases are structured the same way and treated the same way. Most leases are immaterial. Leasing is uncommon. Testbank, Question 19 On January 1, 2017, Dionne Ltd. signs a 10-year non-cancellable lease agreement to lease a storage building from Seline Inc. Seline is in the business of leasing/selling property. Collectibility of the lease payments is reasonably assured and no additional costs are to be incurred by the lessor (other than executory costs). Both the lessor and the lessee are private corporations adhering to ASPE. The following information is available regarding this lease agreement: 1. The agreement requires equal payments at the end of each year. 2. At January 1, 2017, the fair value of the building is $900,000 and Seline's book value is $750,000. 3. The building has an estimated economic life of 10 years, with no residual value. Dionne uses straight-line depreciation for all its depreciable assets. 4. At the termination of the lease, title to the building will transfer to the lessee. 5. Dionne's incremental borrowing rate is 11%. Seline Inc. set the annual rental to ensure a 10% rate of return. The lessor's implicit rate is known to Dionne. 6. The yearly lease payment includes $3,000 executory costs related to taxes on the property. Rounded to the nearest dollar, the amount of the total annual lease payment is $56,471. $146,471. $149,471. $143,471. Testbank, Question 49 Under ASPE, a lease in which the lessor wants to include a profit in the rental amount as well as the asset cost is called a sales-type lease. direct financing lease. finance lease. manufacturer lease. Testbank, Question 78 Ball Ltd. purchased land and constructed a service station, at a total cost of $450,000. On January 2, 2016, when construction was completed, Ball sold the service station and land to a major oil company for $500,000, and immediately leased it back from the oil company. Fair value of the land at the time of the sale was $50,000. The lease is a 10-year, noncancellable lease. Ball uses straight-line amortization for its other assets. The economic life of the station is 15 years with zero residual value. Title to the property will revert back to Ball at the end of the lease. A partial amortization schedule for this lease follows: Payments Interest Amortization Jan 02, 2016 Dec 31, 2016 $81,372.66 $50,000.00 $31,372.66 Dec 31, 2017 81,372.66 46,862.74 34,509.92 Dec 31, 2018 81,372.66 43,411.74 37,960.92 What is the interest rate implicit in the amortization schedule presented above? 12% 10% 8% 6% Testbank Question 78 Red Corp. owns 3,000 of the 10,000 outstanding common shares of Grey Corp. and exercises significant influence. During 2017, Grey reported net income of $120,000 and paid total cash dividends of $40,000. Red Corp. should report investment revenue for 2017 of $24,000. $48,000. $12,000. $36,000. Testbank Question 68 Current IFRS rules for equity investments that are traded in an active market require that they can be accounted for under the fair value through net income model. can be accounted for under the cost model. should generally be accounted for under the fair value through other comprehensive income model. cannot be accounted for under the fair value through net income modelStep by Step Solution
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