These instruments derive their values or contractually required cash flows from
some other security or index.
3. d. $116,250.
LT investments in marketable equity securities at fair value
Plus: Net unrealized holding gains and loss
Question 105 Solution
Goodwill represents the unique value of the company as a whole over and above
all identifiable tangible and intangible assets. This value results from a companys
clientele and reputation, its trained employees and management team, it
Comprehensive income is a more expansive view of the change in shareholders
equity than traditional net income. It encompasses all changes in equity from nonowner transactions. The non-income part of comprehensive income is called other
Investment securities are classified as held-to-maturity, trading, or availablefor-sale securities.
GAAP distinguishes between three levels of inputs to fair value determination,
with level 1 being readily observable fair values
Award: 3.00 points
Problems? Adjust credit for all students.
Nanki Corporation purchased equipment on January 1, 2014, for $679,000. In 2014 and 2015, Nanki depreciated
the asset on a straight-line basis with an estimated useful life of eight years and
GAAP defines research and development as follows:
Research is planned search or critical investigation aimed at discovery of new
knowledge with the hope that such knowledge will be useful in developing a new
product or service or a new proce
The terms depreciation, depletion, and amortization all refer to the process of
allocating the cost of property, plant, and equipment and finite-life intangible assets
to periods of use. The only difference between the terms is that they refer
Amortization of capitalized software is the greater of the amount
calculated using the percentage-of-revenue method and the straight-line method.
In this case, the straight-line percentage is 20% (1/5) and the percentage-ofrevenue method is 30
EXAM # 1 - PREVIEW
Chapters 10 and 11
Spring Semester 2016
- The exam will be 33 Multiple-Choice Questions (each worth 3 points, except one
worth 4 points)
- You will have 90 minutes for take the exam
Best Way to Prepare for Exams
Homework Solutions to D2L Questions Due Feb. 3
The terms depreciation, depletion, and amortization all refer to the process of allocating
the cost of property, plant, and equipment and finite-life intangible assets to periods of
use. The only
Homework Solutions to D2L Questions Due Feb. 26
In concept, liabilities should be reported at their present values; that is, the valuation
amount is the present value of all future cash payments resulting from the debt, usually
Homework Solutions to D2L Questions Due Feb. 24
These instruments derive their values or contractually required cash flows from some
other security or index.
CPA Exam Questions
3. d. $116,250.
LT investments in marketable equity securities a
Homework Solutions to D2L Questions Due Feb. 19
Comprehensive income is a more expansive view of the change in shareholders equity
than traditional net income. It encompasses all changes in equity from nonowner
transactions. The nonincome par
Homework Solutions to D2L Questions Due Feb. 17
Investment securities are classified as held-to-maturity, trading, or available-forsale securities.
GAAP distinguishes between three levels of inputs to fair value determination, wi
Homework Solutions to D2L Questions Due Apr 21
Basic EPS does not reflect the dilutive effect of potential common shares. On the other
hand, diluted EPS incorporates the dilutive effect of all potential common shares, if the
effect is not ant
Homework Solutions to D2L Questions Due Apr 16
The fair value of a stock option is determined by employing a recognized option pricing
model. The option pricing model should take into account the
(1) exercise price of the option,
Homework Solutions to D2L Questions Due Apr 9
CPA Exam Questions
A treasury stock account is created when a company reacquires its own
stockas treasury stock. The full purchase price (cost) is debited to Treasury
When treasury stock is sold,
Homework Solutions to D2L Questions Due Apr 7
The three primary ways a company can be organized are
(1) a sole proprietorship,
(2) a partnership, or
(3) a corporation.
Transactions are accounted for the same regardless of the form of business
1) Please do journal entries for affected funds. SOME STUDENTS MISS THIS PART! PLEASE DO JOURNAL ENTRIES!
2) Indicate how the transaction impact Fund Balance or Net Position. Please be specific. When indicate the impact, please
point out exactly which cat
Capital Projects Funds and Debt Service Funds
On January 1, 2010, approval was obtained to begin construction of a new city hall. As a result
of this approval, $2,800,000 in 5-year serial bonds, which a face interest rate
Chapter 14 Part 2
March 24, 2015
A company can use any method to retire debt prior to its scheduled maturity date. The gain or
loss calculated the different between the carrying value and the cash paid to retire the bond. To
Chapter 14 Part 1
March 19, 2015
Notes and Bonds have similar qualities. They both issue corporations to repay a stated amount at
the maturity date. The money a company borrows also agrees to pay interest to the lender.
Chapter 13 Part 3
March 12, 2015
Since the sick pay accrued the company needs to record it as a liability.
Gain contingencies should not be recognized in financial statements until realized.
Chapter 13 Part 2
March 10, 2015
The liability should be accrued if it is both probable that the confirming event will occur and the
amount can be at least reasonably estimated.
Manufactures product warrantieswe cant
Chapter 13 Part 1
February 26, 2015
a. December 31, $100,000(12%(6/12)=$6,000
b. September30, $100,000(12%)(3/12)=3,000
1. Dr. Cash
Cr. Notes Payable
2. Dr. Interest Expense
Cr. Interest Paya
Chapter 12 Part 3
In the equity method we try to approximate the effects of accounting for the purchase of the investee.
We record net assets at fair market value on financial statements. Depreciation would become higher
Chapter 12 Part 2
February 19, 2015
A comprehensive income is an extended view of shareholders equity. The items that appear on
the income statement that are non-income go in the other comprehensive income section. The
Chapter 11 part 1
February 17, 2015
Investments are classified in one of three categories, held to maturity, trading, or available for sale
securities. Each type of investment has their own reporting method.
Chapter 11 Part 3
February 10, 2015
Goodwill is an intangible asset that has indefinite life and is not amortized
($60,000-0)/10= $6,000 per year
($60,000-(2 * $6,000)-3)/3 =$15,000