According to U.S. GAAP, restorations of carrying value for long-lived assets are permitted if an
assets fair value increases subsequent to recording an impairment loss for which of the
Held for disposal
Some liabilities are not contractual obligations and may not be payable in cash.
Amounts withheld from employees in connection with payroll often represent liabilities to third parties.
For a loss contingency to be
Programming Logic and Design, 6e
Programming Logic and Design, 6th Edition
a. Design the logic for a program that allows a user to enter 10 numbers, then
displays them in the reverse order of their entry.
1. Blue Sky Corporation purchases a patent from ABC
Company on January 1, 2015, for $48,000. The
patent has a remaining legal life of 12 years. Blue
Sky feels the patent will be useful for 8 years. On
July 1, 2017, Blue Sky spends $7,000 succes
During Year 3, Rex Co. introduced a new product carrying a 2-year warranty against defects.
The estimated warranty costs related to dollar sales are 2% within 12 months following sale and
4% in the second 12 months following sale. Sales and actual warrant
Cart Co. purchased an office building and the land on which it is located for $750,000 cash and
an existing $250,000 mortgage. For realty tax purposes, the property is assessed at $960,000,
60% of which is allocated to the building. At what amount should
Which of the following expenditures qualifies for asset capitalization?
Salaries of engineering staff developing a new product.
Legal costs associated with obtaining a patent on a new product.
Cost of materials used in prototype testing.
Stone Co. is considering the acquisition of equipment. To buy the equipment, the cost is $15,192. To
lease the equipment, Stone must sign a noncancelable lease and make five payments of $4,000 each.
The first payment will be paid on the first day of the l
Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a
service life of 12 years and a salvage value of $40,000.
(a) Compute the amount of depreciation for each of Years 1 through 3 using the st
How would each of the following items be reported on the balance sheet?
Accrued vacation pay.
Estimated taxes payable.
Service warranties on appliance sales.
Indicate which items on the list above would generally be reported as intangible assets in the balance sheet.
10, 13, 15, 16, 17, 19, 23
Everything else is the other option.
Presented below is selected information for Alatorre Company.
Presented below are two independent situations.
On January 1, 2014, Simon Company issued $200,000 of 9%, 10-year bonds at par. Interest is payable quarterly on
October 1, and January 1.
On June 1, 2014, Garfunkel Company issued $100,000 of 12%, 10-year