BE 11.21 – WebHelper Inc.
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Given the same value for stock value, goodwill, and book value… change the amount of fair value and then calculate the impairment loss.
Given the same value for stock value, goodwill, and book value… change the amount of fair value and then calculate the impairment loss.
This is a part 3 question where they give you the same stock value, goodwill, fair value, and book value, but add the estimated future cash flows and ask you to calculate the impairment loss.
Classify expenditures: maintenance, remodel, rearrangement, addition. How should Demmert account for each of these expenditures?
Prepare the journal entries to record Lance Brothers’ investment in the bonds, and record interest at the effective (market) rate.
EARNS PROFITS ON SHORT TERM: What pretax amounts did the company include in its net income?
VERSION: “Expects to earn a profit on short-term”. Read carefully. Gives the cost purchased, cost of sold bonds, the fair value of bonds. Asks for journal entries for three different dates.
AVAILABLE FOR SALE: Find what pretax amounts did the company include in its net income for the years.
VERSION: “Classifies as Available for Sale”. Read carefully. Gives the cost of bonds purchased, cost of bonds sold, and fair value. Asks for the journal entries.
Given the amount bonds were purchased for, the amount they were sold for, and the fair value they ask you to determine the pretax amount included in the net income when using the fair value option.
Given the acquired cost, the fair value for two years, and the amortized value for two years… find the investment amount for the balance sheet and the adjustment entry.