F 6. Multiple-deliverable arrangements. T 7. Input measure for contract progress. T 8.
FASB states that if some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, that amount shall be accrued (FASB 450-20-30-1). Therefore, M should record a liability in the amount of $17 million. 2. For the year- end December 31, 2009, financial statements, should M adjust its liability? If so, what amount should be recorded; and should the amount of the adjustment be considered a 2009 event or a prior period adjustment?
Accounts receivable a 11. Cash surrender value of life insurance b 12. Notes payable (due next year) f 13. Supplies a 14. Common stock h 15.
If the interest rate is 12% per year, what is the present value of this annuity? a. $1,229.97 b. $496.76 c. $556.38 d. Other 7. Given the following cash flow stream at the end of each year: Year 1: $4,000 Year 2: $2,000 Year 3: 0 Year 4: -$1,000 Using a 10% discount rate, the present value of this cash flow stream is: a.
What type of pension plan is it? What are key assumptions? What are the main unique challenges that OTPPB face? Pension plans are usually classified as belonging to one of two groups: defined contribution or defined benefit plans. The basic distinction between these two groups rested in the way that benefits were calculated.
d. How should Lani report the lease transaction on its December 31, 2006, balance sheet? The reports should fall under Lani’s December 31, 2006 balance sheet which displays non current and should be noted separately. The capital ease should be listed under the capital lease on December 31, 2006. Case 13-5 Lease Classifications a. What criteria must be met by the lease in order that Doherty Company classify it as a capital lease?
CHAPTER 11 Depreciation, Impairments, and Depletion ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Depreciation methods; meaning of depreciation; choice of depreciation methods. Computation of depreciation. Depreciation base. Errors; changes in estimate.
(1 Mark) 5. When does an asset meet the identifiability criterion? (1 Mark) 6. When should an intangible asset be recognised? (1 Mark) 7.
ALTERNATIVE PROBLEMS AND SOLUTIONS ALTERNATIVE PROBLEMS 11- 1A. (Individual or Component Costs of Capital) Compute the cost for the following sources of Financing: a. A bond that has a $1,000 par value (face value) and a contract or coupon interior rate of 12%. A new issue would have a flotation cost of 6% of the $1,125 market value. The bonds mature in 10 years.
Borrowing costs are interest and other costs that an entity incurs in connection with obtaining loan. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Depending on the circumstances, any of the following may be qualifying assets: inventories, manufacturing plants, power generation facilities, intangible assets, investment properties. Financial assets and inventories that are manufactured over a short period of time are not qualifying assets. Assets that are ready for their intended use or sale when acquired are also not qualifying assets.