Question 22: Bull Corporation has a December 31 fiscal year-end. As of December 31, Year 1, Bull Corporation has the following items:

- $150,000 Notes payable, due on March 1, Year 2. The company has reached an agreement with the bank to refinance the note for 2 years but the refinancing has not yet been completed.

- $500,000 4% bond payable, due on December 31, Year 5. The company has violated the bond covenants which causes the bonds to come due on January 31, Year 2. The company has negotiated with the bondholder and the bondholder agreed to grant the company 6 months to rectify the debt covenant violation.

Assuming that under US GAP the current asset of Bull Corporation at December 31, Year 1 is $520,000. Calculate the current asset of Bull Corporation at December 31, Year 1 under IFRSs?

Question 29: Buch Corporation purchased a machine at the beginning of year 1 at a cost of $700,000

The machine is used in the production of product A. Expected useful life of the machine is 20 years with no residual value. The straight-line method of depreciation is used. At the end of 2nd year. The machine is revalued upward at its fair value of $712.28$

Question 1: Calculate the revaluation gain on 31 Dec, Year 2 and prepare appropriate journal

entries.

In year 3, due to adverse economic conditions demand for product A decline significantly. At Dec 31, year 3, the company develops the following estimates related to the machine:

Expected future cash flows: $600,000

Present value of expected future cash flows: $520.000

Selling price: $530.000

Costs of disposal: $20,000

Question 2: Determine whether the machine has been impaired in accordance with AS 36 and

prepare appropriate journal entries on 31 Dec. Year 3.

Question 43: In Year 1, in a project to develop Product X, Lincoln Company incurred R&D costs totaling $10 million. Among these costs, research-phase costs are $6 million, and development-phase costs are $4 million. All of the AS 38 criteria have been met for recognition of the development costs as an asset.

Profit of Lincoln in Year 1 is $300 million in accordance with US GAAP.

Calculate profit of Lincoln in Year 1 in accordance with IFRS?