Homework Answers
Answer:
Answer a.
Part 1 - Under IFRS
Account title Debit Credit
Cash 1,02,000
Bonds Payable 88,756
Additional paid in capital - convertible bonds 13,244
pv value of bonds payable: [102,000 *0.28584] + [9180 * 6.492356] =29,155.76 + 59,599.82 = 88,755.58
Part 2 - Under U.S. GAAP
Account title Debit Credit
Cash 1,02,000
Bonds payable 1,02,000
Answer b.
Conversion from IFRS TO GAAP
Account title Debit Credit
Additional paid in capital - convertible bonds 13,244
Bonds payable 13,244
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to acquisition...
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2017, at a cost of $72,000. The equipment was expected to have a
useful life of four years and a residual value of $11,000 and is
being depreciated on a straight-line basis. On January 1, 2018, the
equipment was appraised and determined to have a fair value of
$67,100, a salvage value of $11,000, and a remaining useful life of
three years. In measuring property, plant, and equipment subsequent
to acquisition...
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