Silver Cup Corp. has a piece of equipment, which is being held for sale, and has a carrying value of $100,000. When the decision to sell had been made, the equipment had been written down from a carrying value of $180,000. At December 31, 2020, it is estimated that the fair value less disposal costs (net realizable value) is $130,000. For the calendar year 2020, Silver Cup should recognize a recovery (gain) of

a . $0.

b . $80,000 .

c . $50,000.

d . $30,000.

2. Included in Paul Inc.s account balances at December 31, 2020, were the following: 4% note payable issued October 1, 2020, maturing September 30, 2021 $ 250,000 6% note payable issued April 1, 2020, payable in six equal annual instalments of $ 100,000 beginning April 1, 2021 600,000 Pauls December 31, 2020 financial statements were to be issued on March 31, 2021. On January 15, 2021, the entire $ 600,000 balance of the 6% note was refinanced by issuance of a long-term note to be repaid in 2024. In addition, on March 10, 2021, Paul made arrangements to refinance the 4% note on a long-term basis. Under IFRS, on the December 31, 2020 statement of financial position, the amount of the notes payable that Paul should classify as current liabilities is

a . $ 250,000.

b . $ 100,000.

c . $ 350,000.

d . $ 0.

3. Feather Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows:

Hourly Vacation Days Earned Vacation Days Used Year Wages by Each Employee by Each Employee 2020 $ 12.90 10 0 2021 13.50 10 8 2022 14.25 10 10 Feather has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned. What is the amount of vacation pay expense that should be reported on Feathers income statement for 2020?

a . $ 34,440

b . $ 0

c . $ 37,800

d . $ 36,120

4. In 2020, Peterson Corporation incurred research costs as follows: Materials and supplies........................................................................ $ 60,000 Personnel.......................................................................................... 65,000 Indirect costsallocated.................................................................... 80,000 $ 205,000 These costs relate to a product that Peterson expects to market in 2021. It is estimated that these costs will be recouped by December 31, 2023. How much of these costs could be capitalized in 2020?

a . $ 0 . b . $ 80,000

c . $ 205,000

d . $ 125,000

5. Which of the following best describes the concept of cash-generating units (CGU)? a

. The individual assets that are included in the CGU do not generate cash flows on their own. b . IFRS does not recognize the concept of cash-generating units (CGU). c . A CGU is the largest identifiable group of assets that generates cash inflows predominantly independent from other CGUs.

d . Their cash flows are dependent on those of other CGU's