presented below are four unrelated situations involving equity securities that have 3390833

Presented below are four unrelated situations involving equity securities that have readily determinable fair values. Situation 1 A noncurrent portfolio with an aggregate market value in excess of cost includes one particular security whose market value has declined to less than half of the original cost. The decline in value is considered to be other than temporary. Situation 2 The balance sheet of a company does not classify assets and liabilities as current and noncurrent. The portfolio of marketable equity securities includes securities normally considered to be trading securities that have a net cost in excess of market value of $ 2,000. The remainder of the portfolio is considered noncurrent and has a net market value in excess of $ 5,000. Situation 3 A marketable equity security, whose market value is currently less than cost, is classified as a noncurrent security that is available for sale but is to be reclassified as a trading security. Situation 4 A company’s noncurrent portfolio of marketable equity securities consists of the common stock of one company. At the end of the prior year the market value of the security was 50 percent of original cost, and the effect was properly reflected in the balance sheet. However, at the end of the current year the market value of the security had appreciated to twice the original cost. The security is still considered noncurrent at year- end. Required: Determine the effect on classification, carrying valu

presented below are four independent situations concerning olympia corp a on decembe 3390831

Presented below are four independent situations concerning Olympia Corp. (a) On December 31, 2014, Olympia Corp. sold excavation equipment to Fifth Finance Company and immediately leased it back for 6 years. The sales price of the equipment was $400,000, its carrying amount is $250,000, and its estimated remaining economic life is 8 years. Determine the amount of deferred revenue to be reported from the sale of the computer equipment on December 31, 2014. (b) On January 1, 2014, Olympia Corp. sold a tractor trailer with an estimated useful life of 15 years. At the same time, Olympia Corp. leased back the tractor trailer for 15 years. The sales price of the tractor trailer was $150,000, the carrying amount $35,000, and the annual rental $19,721.07. Olympia Corp. intends to depreciate the leased asset using the double-declining balance depreciation method. Discuss how the gain on the sale should be reported at the end of 2014 in the financial statements. (c) On January 1, 2015, Olympia Corp. sold equipment with an estimated useful life of 6 years. At the same time, Olympia Corp. leased back the equipment for 4 years under a lease classified as an operating lease. The sales price (fair market value) of the equipment was $85,000 and the carrying amount is $120,000, the annual rental under the lease is $21,000, and the present value of the rental payments is $66,567. For the year ended December 31, 2014, determine which items would be reported on its income statement for the sa

presented below are four independent situations all the companies involved use aspe 3390829

Presented below are four independent situations. All the companies involved use ASPE. 1. On December 31, 2014, Zarle Inc. sold equipment to Orfanakos Corp. and immediately leased it back for 10 years. The equipment s selling price was $520,000, its carrying amount $400,000, and its estimated remaining economic life 12 years. 2. On December 31, 2014, Tessier Corp. sold a machine to Cross Ltd. and simultaneously leased it back for one year. The machine s selling price was $480,000, its carrying amount was $420,000, and it had an estimated remaining useful life of 14 years. The rental payments present value for one year is $35,000. 3. On January 1, 2014, McKane Corp. sold an airplane with an estimated useful life of 10 years. At the same time, McKane leased back the plane for 10 years. The airplane s selling price was $500,000, the carrying amount $379,000, and the annual rental $73,975.22. McKane Corp. intends to depreciate the leased asset using the straight-line depreciation method. 4. On January 1, 2014, Barnes Corp. sold equipment with an estimated useful life of five years. At the same time, Barnes leased back the equipment for two years under a lease classified as an operating lease. The equipment s selling price (fair value) was $212,700, the carrying amount was $300,000, the monthly rental under the lease was $6,000, and the rental payments present value was $115,753. Instructions (a) For situation 1: Determine the amount of unearned profit to be reported

presented below are four independent situations all the companies involved use priva 3390828

Presented below are four independent situations. All the companies involved use private enterprise GAAP. 1. On December 31, 2011, Zarle Inc. sold equipment to Daniell Corp. and immediately leased it back for 10 years. The equipment’s selling price was $520,000, its carrying amount $400,000, and its estimated remaining economic life 12 years. 2. On December 31, 2011, Tessier Corp. sold a machine to Cross Ltd. and simultaneously leased it back for one year. The machine’s selling price was $480,000, its carrying amount was $420,000, and it had an estimated remaining useful life of 14 years. The rental payments’ present value for one year is $35,000. 3. On January 1, 2011, McKane Corp. sold an airplane with an estimated useful life of 10 years. At the same time, McKane leased back the plane for 10 years. The airplane’s selling price was $500,000, the carrying amount $379,000, and the annual rental $73,975.22. McKane Corp. intends to amortize the leased asset using the straight-line depreciation method. 4. On January 1, 2011, Barnes Corp. sold equipment with an estimated useful life of five years. At the same time, Barnes leased back the equipment for two years under a lease classified as an operating lease. The equipment’s selling price (fair value) was $212,700, the carrying amount was $300,000, the monthly rental under the lease was $6,000, and the rental payments’ present value was $115,753. Instructions (a) For situation 1: Determine the amount of deferred profi

presented below are four concepts please match each one with the correct scenario re 3390825

Presented below are four concepts. Please match each one with the correct scenario. Relevance Reliability Comparability Consistency _____ Hotel Del Sol uses the Uniform System of Accounts so that it can assess how it is performing financially against like hotels. _____ Hotel Del Sol uses the straight line method for its depreciation and is expected to use this method in the succeeding years. _____ The controller at Hotel Del Sol provides information that is timely and has feedback and predictive value. _____ The controller and her staff at Hotel Del Sol check their work to make sure it is accurate.