Homework Answers
Answer:
1.
Yes, this ought to be accounted for as a major aspect of ICO.
The losses caused from strikes don't go under the extensive class. Therefore it ought to be incorporated under ICO as it were.
2.
Reduce ICO by $125,000
The loss brought about by strike ought to be deducted from ICO. Subsequently, ICO must be decreased by $125,000.
3.
No modifications required or adjustments needed.
There would be no impact on comprehensive income. In any case, the recently recorded loss of $125,000 ought to be written off.
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Continuing from Question 2... Scenario D: A strike by the employees of a supplier during the...
Continuing from Question 2... Scenario D: A strike by the employees of a supplier during the...
Continuing from Question 2... Scenario D: A strike by the employees of a supplier during the month of September 2019 resulted in a pre-tax loss of $125,000. This was considered an unusual loss and so was recorded as Other Comprehensive Income 1. Is there an error? [Select] 2. What adjustment (if any) is needed to Desert's ICO for 2019? [Select] 3. What adjustment (if any) is needed to Desert's Comprehensive Income for 2019? [ Select] Continuing from Question 2. Scenario...
A strike by the employees of a supplier during the month of September 2019 resulted in...
A strike by the employees of a supplier during the month of September 2019 resulted in a pre-tax loss of $125,000. This was considered an unusual loss and so was recorded as Other Comprehensive Income. 1. Is there an error? [ Select ] ["No, they should have reported it as OCI", "Yes, this should be reported as a part of ICO instead", "No, because it...
Continuing from Question 2 Scenario C On March 1, 2019, Desert discovered that R&D costs of...
Continuing from Question 2 Scenario C On March 1, 2019, Desert discovered that R&D costs of $150,000 for 2017 were capitalized as a part of the Historical Cost of the Patent, instead of being expensed. Income from Continuing Operations for 2019 includes the current year's R&D costs of $125,000 as an expense. 1. What type of scenario is addressed? (Select] 2. What adjustment (if any) is needed to Desert's ICO for 2019? Select] 3. Does Desert need to restate its...
1B options- Continuing from Question 2. Scenario B: Desert, Co. purchased a truck for $50,000 on...
1B options-
Continuing from Question 2. Scenario B: Desert, Co. purchased a truck for $50,000 on January 1, 2016. The truck had an estimated salvage value of $5,000 and an estimated useful life of 10 years. Desert uses the straight-line depreciation method. On January 1, 2019 Desert revised the estimated salvage value to $10,000, but did not change the useful life. The accountant recorded depreciation expense using the old salvage value when calculating the $500,000 ICO. 1. Is an adjustment...
one of the three is wrong Continuing from Question 2... Scenario B: Desert, Co. purchased a...
one
of the three is wrong
Continuing from Question 2... Scenario B: Desert, Co. purchased a truck for 550.000 on January 1, 2016. The truck had an estimated salvage value of $5.000 and an estimated useful life of 10 years, Desert uses the straight-line depreciation method On January 1, 2019. Desert revised the estimated salvage value to S10,000, but did not change the useful life. The accountant recorded depreciation expense using the old salvage value when calculating the $500.000 ICO....
Company inc. is preparing its financial statements. The company's accountant calculated Income from Continuing Operations to...
Company inc. is preparing its financial statements. The company's accountant calculated Income from Continuing Operations to be $500,000, but is not certain this number is accurate. Please review the following three scenarios and determine the appropriate adjustment to Income from Continuing Operations, if any, that is required for each item. All amounts listed are pre-tax unless otherwise noted. Corporate income tax rate is 30%. Scenario A: The Company has an unrealized loss on a Hedging Transaction of $10,000 (pre-tax). The...
On March 1, 2019, Desert discovered that R&D costs of $150,000 for 2017 were capitalized as...
On March 1, 2019, Desert discovered that R&D costs of $150,000 for 2017 were capitalized as a part of the Historical Cost of the Patent, instead of being expensed. Income from Continuing Operations for 2019 includes the current year's R&D costs of $125,000 as an expense. 1. What type of scenario is addressed? [ Select ] ["Change in Accounting Principle", "Change in Accounting Estimate", "Correction...
one of the three is wrong Coming from Question 2... Scenario : On March 1. 2019....
one of the three is wrong
Coming from Question 2... Scenario : On March 1. 2019. Desert discovered that R&D costs of $150.DOD for 2017 were capitained as a part of the of the Patent, instead of being expensed Income from Continuing Operations for 2019 includes the current y of $125.000 as an expense. wal l RADO 1. What type of scenario is addressed? Correction of an Error 2. What adjustment (if any) is needed to Desert's 10 for 2019?...
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Pitchfork, Inc. is preparing its 2020 financial statements. The company's accountant calculated Income from Continuing Operations to be $1,700,000, but upon further review is not certain this number is accurate. Pitchfork has a corporate income tax rate of 30%. Additionally, the company reports only one year of financial data on the face of the financial statements. All amounts listed are pretax unless otherwise noted. After reviewing the following information, determine the appropriate adjustments, if any, to Income from Continuing Operations. Once...
Question 1 1 pts Desert Company reported the following at December 31, 2019: Sales Revenue Cost...
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Continuing from Question 2... Scenario D: A strike by the employees of a supplier during the month of September 2019 resulted in a pre-tax loss of $125,000. This was considered an unusual loss and so was recorded as Other Comprehensive Income 1. Is there an error? [Select] 2. What adjustment (if any) is needed to Desert's ICO for 2019? [Select] 3. What adjustment (if any) is needed to Desert's Comprehensive Income for 2019? [ Select] Continuing from Question 2. Scenario...
Continuing from Question 2 Scenario C On March 1, 2019, Desert discovered that R&D costs of $150,000 for 2017 were capitalized as a part of the Historical Cost of the Patent, instead of being expensed. Income from Continuing Operations for 2019 includes the current year's R&D costs of $125,000 as an expense. 1. What type of scenario is addressed? (Select] 2. What adjustment (if any) is needed to Desert's ICO for 2019? Select] 3. Does Desert need to restate its...
1B options-
Continuing from Question 2. Scenario B: Desert, Co. purchased a truck for $50,000 on January 1, 2016. The truck had an estimated salvage value of $5,000 and an estimated useful life of 10 years. Desert uses the straight-line depreciation method. On January 1, 2019 Desert revised the estimated salvage value to $10,000, but did not change the useful life. The accountant recorded depreciation expense using the old salvage value when calculating the $500,000 ICO. 1. Is an adjustment...
one
of the three is wrong
Continuing from Question 2... Scenario B: Desert, Co. purchased a truck for 550.000 on January 1, 2016. The truck had an estimated salvage value of $5.000 and an estimated useful life of 10 years, Desert uses the straight-line depreciation method On January 1, 2019. Desert revised the estimated salvage value to S10,000, but did not change the useful life. The accountant recorded depreciation expense using the old salvage value when calculating the $500.000 ICO....
one of the three is wrong
Coming from Question 2... Scenario : On March 1. 2019. Desert discovered that R&D costs of $150.DOD for 2017 were capitained as a part of the of the Patent, instead of being expensed Income from Continuing Operations for 2019 includes the current y of $125.000 as an expense. wal l RADO 1. What type of scenario is addressed? Correction of an Error 2. What adjustment (if any) is needed to Desert's 10 for 2019?...
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