Homework Answers
"Cost allocation process is "
Building depreciation process to record the book value.
The correct answer is OPTION B.
Explanation of the above statement :-
Cost allocation can be defined as a process of assigning cost to
cost objects. Cost object is anything for which separate
measurement of cost is required.
Cost object may be a product, a service, a project, a customer, a
department or a program etc.
The cost allocation process in the above mentioned question is
building depreciation process to record the book value.
Cost allocation process cannot be :-
- Goodwill impairment.
- Fair value accounting applied for trading securities.
- R & D expensing.
Add Answer to:
Question 12 15 pts Which one is a cost allocation process? O Goodwill Impairment O Building...
Need help for parts a & b for the problems Goodwill Allocation and Impairment Testing Porter...
Need help for parts a & b for the problems
Goodwill Allocation and Impairment Testing Porter Corporation acquired Stewart CEDERE vices, and Mobile Broadband. In addition, one of Porter's reporting units, U.S. Cellular, benefit on January 1, 2020, at a cost of $180 million. Stewart has three reporting units, Networks, Globe the acquisition. Relevant data are as follows, at the date of acquisition (in millions): 176 Chapter 4 Consolidated Financial Statements Subsequent to Acquisite LO 3 P4.6 Global Services Mobile...
4. Assuming the qualitative screen cannot be used, goodwill impairment: 4. Assuming the qualitative screen cannot...
4. Assuming the qualitative screen cannot be used, goodwill
impairment:
4. Assuming the qualitative screen cannot be used, goodwill impairment A) will be amortized over the remaining useful life. B) is a two-step process which first compares book value to fair value at the business reporting unit level. C) is a one-step process considering the entire firm. D) occurs when asset values are adjusted to fair value in a purchase.
Question 12 5 pts The essence of depreciation used in accounting is best reflected by which...
Question 12 5 pts The essence of depreciation used in accounting is best reflected by which of the following below? OC. A method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved. O d. An accounting concept that allocates the portion of an asset used up during the year to the contra asset account for the purpose of properly recording the fair market value of tangible assets....
Blue Sky Company's 12/31/08 balance sheet reports assets of $5,000,000 and liabilities of $2,000,000. All of...
Blue Sky Company's 12/31/08 balance sheet reports assets of $5,000,000 and liabilities of $2,000,000. All of Blue Sky's assets' book values approximate their fair value, except for land, which has a fair value that is $200,000 greater than its book value. On 12/31/08, Aaron Corporation paid $5,300,000 to acquire Blue Sky. What amount of goodwill should Aaron record as a result of this purchase? Select one: O a. $2,700000 O b. $300,000 O c. $2,300,000 O d. $2,000,000 O e....
Question 12 (1 point) The capitalized cost of land excludes: The purchase price of the land....
Question 12 (1 point) The capitalized cost of land excludes: The purchase price of the land. Title insurance paid at the time of purchase. Real estate commissions associated with the sale. Property taxes for the first year owned. Question 13 (1 point) An exclusive 20-year right to manufacture a product or use a process is a: Patent Copyright. Trademark. Franchise Question 14 (1 point) The cost of constructing a new parking lot at the company's office building would be recorded...
NA Question 9 (1 point) In 2017. Antle Inc. had acquired Demski Co. and recorded goodwill...
NA Question 9 (1 point) In 2017. Antle Inc. had acquired Demski Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Co. had a 2018 year-end book value of $580 million. Antle assessed the fair value of Demski at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss...
5-1 and 5-2 CISE 5-1 interest in Shaw Company for $540,000 Allocation of Cost LO 1...
5-1 and 5-2
CISE 5-1 interest in Shaw Company for $540,000 Allocation of Cost LO 1 LO3 On January 1, 2018, Pam Company purchased an 85% interest in Shaw Company On this date, Shaw Company had common stock of $400,000 and retained carnings of An examination of Shaw Company's assets and liabilities revealed that the equal to their fair value except for marketable securities and equipment: assets and liabilities revealed that their book value was Book Value Fair Value Marketable...
Computer ProjectAlternative Investment Methods, Goodwill Impairment, andConsolidated Financial StatementsIn this project, you are...
Computer ProjectAlternative Investment Methods, Goodwill Impairment, and
Consolidated Financial StatementsIn this project, you are to provide an analysis of alternative
accounting methods for controlling interest investments and
subsequent effects on consolidated reporting. The project requires
the use of a computer and a spreadsheet software package (e.g.,
Microsoft Excel, etc.). The use of these tools allows you page
152to assess the sensitivity of alternative accounting methods on
consolidated financial reporting without preparing several similar
worksheets by hand. Also, by modeling a...
One multiple choice question Which of the following is not accounted for as a change in...
One multiple choice question
Which of the following is not accounted for as a change in accounting principle? Select one: a. A change in the estimated useful life of plant assets. b. A change from accelerated method to straight line method of depreciation. O c. A change from deferring and amortizing R&D expenditures to expensing those as incurred. d. A change in inventory cost-flow assumption from average cost to FIFO. e. a and b f. a, b, and c
Question 15 (1 point) Alou Corporation reported the following information at year-end: Building Patent Copyright Machine...
Question 15 (1 point) Alou Corporation reported the following information at year-end: Building Patent Copyright Machine Estimated Book Value Cash Flows Fair Value $500,000 $380,000 $360,000 $ 35,000 $ 40,000 $ 38,000 $ 40,000 $ 38,000 $ 39,000 $100,000 $120,000 $ 85,000 Based on the above information, what is the total amount of impairment loss that Alou should record at year end? $141,000. $126.000 $123.000. $122.000
Need help for parts a & b for the problems
Goodwill Allocation and Impairment Testing Porter Corporation acquired Stewart CEDERE vices, and Mobile Broadband. In addition, one of Porter's reporting units, U.S. Cellular, benefit on January 1, 2020, at a cost of $180 million. Stewart has three reporting units, Networks, Globe the acquisition. Relevant data are as follows, at the date of acquisition (in millions): 176 Chapter 4 Consolidated Financial Statements Subsequent to Acquisite LO 3 P4.6 Global Services Mobile...
4. Assuming the qualitative screen cannot be used, goodwill
impairment:
4. Assuming the qualitative screen cannot be used, goodwill impairment A) will be amortized over the remaining useful life. B) is a two-step process which first compares book value to fair value at the business reporting unit level. C) is a one-step process considering the entire firm. D) occurs when asset values are adjusted to fair value in a purchase.
Question 12 5 pts The essence of depreciation used in accounting is best reflected by which of the following below? OC. A method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved. O d. An accounting concept that allocates the portion of an asset used up during the year to the contra asset account for the purpose of properly recording the fair market value of tangible assets....
Blue Sky Company's 12/31/08 balance sheet reports assets of $5,000,000 and liabilities of $2,000,000. All of Blue Sky's assets' book values approximate their fair value, except for land, which has a fair value that is $200,000 greater than its book value. On 12/31/08, Aaron Corporation paid $5,300,000 to acquire Blue Sky. What amount of goodwill should Aaron record as a result of this purchase? Select one: O a. $2,700000 O b. $300,000 O c. $2,300,000 O d. $2,000,000 O e....
Question 12 (1 point) The capitalized cost of land excludes: The purchase price of the land. Title insurance paid at the time of purchase. Real estate commissions associated with the sale. Property taxes for the first year owned. Question 13 (1 point) An exclusive 20-year right to manufacture a product or use a process is a: Patent Copyright. Trademark. Franchise Question 14 (1 point) The cost of constructing a new parking lot at the company's office building would be recorded...
NA Question 9 (1 point) In 2017. Antle Inc. had acquired Demski Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Co. had a 2018 year-end book value of $580 million. Antle assessed the fair value of Demski at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss...
5-1 and 5-2
CISE 5-1 interest in Shaw Company for $540,000 Allocation of Cost LO 1 LO3 On January 1, 2018, Pam Company purchased an 85% interest in Shaw Company On this date, Shaw Company had common stock of $400,000 and retained carnings of An examination of Shaw Company's assets and liabilities revealed that the equal to their fair value except for marketable securities and equipment: assets and liabilities revealed that their book value was Book Value Fair Value Marketable...
Computer ProjectAlternative Investment Methods, Goodwill Impairment, and
Consolidated Financial StatementsIn this project, you are to provide an analysis of alternative
accounting methods for controlling interest investments and
subsequent effects on consolidated reporting. The project requires
the use of a computer and a spreadsheet software package (e.g.,
Microsoft Excel, etc.). The use of these tools allows you page
152to assess the sensitivity of alternative accounting methods on
consolidated financial reporting without preparing several similar
worksheets by hand. Also, by modeling a...
One multiple choice question
Which of the following is not accounted for as a change in accounting principle? Select one: a. A change in the estimated useful life of plant assets. b. A change from accelerated method to straight line method of depreciation. O c. A change from deferring and amortizing R&D expenditures to expensing those as incurred. d. A change in inventory cost-flow assumption from average cost to FIFO. e. a and b f. a, b, and c
Question 15 (1 point) Alou Corporation reported the following information at year-end: Building Patent Copyright Machine Estimated Book Value Cash Flows Fair Value $500,000 $380,000 $360,000 $ 35,000 $ 40,000 $ 38,000 $ 40,000 $ 38,000 $ 39,000 $100,000 $120,000 $ 85,000 Based on the above information, what is the total amount of impairment loss that Alou should record at year end? $141,000. $126.000 $123.000. $122.000
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