Question 9 1 pts Bryce Corp. signed an agreement with Casey, which requires that if Casey does not meet certain contractual obligations, Casey must forfeit land worth $100,000 to Bryce. Bryce's accountants believe that Casey will not meet its contractual obligations, and it is probable Bryce will receive the land by the end of year 3. Bryce uses IFRS for reporting purposes. How should Bryce report the land in its December 31, year 2 financial statements? o As investment property in the asset section of the balance sheet. As a contingent asset in the current asset section of the balance sheet. In a footnote disclosure if the economic benefits are probable. As a contingent asset and other comprehensive income for the period. Question 10 1 pts As of December 15, Year 1, Aviator had dividends in arrears of $200,000 on its cumulative preferred stock. Dividends for Year 1 of $100,000 have not yet been declared. The Board of Directors plans to declare cash dividends on its preferred and common stock on January 16, Year 2. Aviator paid an annual bonus to its CEO based on the company's annual profits. The bonus for Year 1 was $50,000, which will be paid on February 10, Year 2. What amount should Aviator report as current liabilities on its balance sheet at December 31, Year 1? O $ 50.000 o $150,000 $200,000 $350,000 U Question 11 1 pts During January year 2, a former employee of Dane Co.filed a suit against Dane for wrongful termination in November year 1. After considering all of the facts, Dane's legal counsel believes that the former employee will prevail and will probably receive damages of between $1,000,000 and $1,500,000, with $1,300,000 being the most likely amount. Dane's financial statements for the year ended December 31, year 1. will not be issued until February year 2. In its December 31, year 1 balance sheet, what amount should Dane report as a liability with respect to the suit? O $0 O $1,000,000 O $1,300,000 O $1,500,000 Question 12 1 pts On March 31, year 1, Dallas Co. received an advance payment of 60% of the sales price for special-order goods to be manufactured and delivered within five months. At the same time, Dallas subcontracted for production of the special-order goods at a price equal to 40% of the main contract price. What liabilities should be reported in Dallas March 31, year 1 balance sheet?sto isto Deferred revenues Payables to subcontractor O None None 60% of main contract price 40% of main contract price 60% of main contract price None None 40% of main contract price
