Author: Anonymous

Calculate the amount of goodwill Pesto will capitalize on its Statement of Financial Position (Balance Sheet) as a result of this acquisition.  Hint:  You can answer this question by calculating goodwill directly, or by preparing the journal entry that would be recorded at acquisition.

Intangible assets that have a limited life are amortized over a period NOT to exceed:

Assets 3 & 4 Land and building were acquired for a lump sum price of $1,500,000 which was paid in cash. At the time of acquisition, the land was appraised at $612,500 and the building was appraised at $1,137,500. Which of the following statements about the acquisition of Assets 3 & 4 are true:

Spooky Ltd. uses the cost model with straight line depreciation to account for its capital assets.  Prepare the journal entry that is required to correct the prior years’ depreciation (if any). If no entry is required, explain why.

Prepare all necessary journal entries needed on May 31, 2024 to account for the trade-in of the old machine for the new machine.  (Hint:  Recall that a “trade-in” is a type of capital disposal.)         

Use the following ordered list of values to compute the descriptive statistics requested. 122, 122, 123, 128, 129, 131, 132, 134, 135 These must be computed by hand and your work must be turned in to get credit. Just writing down an answer without showing appropriate hand calculated work (which demonstrates that you know the corresponding formulas and methods) will result in points being removed or no credit given.  For the sample standard deviation, consider these values to be values taken from a sample, which means

PART B: Assume Snowman Corporation was not actively trading the equity investments and decided to follow the FV-OCI Model for valuation.  Identify and explain two key differences in the way the investments would be accounted for and/or  disclosed.         

Common shares of XYZ Co. closed on the TSX yesterday at $15. Over the past month, the average price for these shares was $13. An analyst claims that such a share is really worth $20 and recommends buying it. The company has reported earnings per share of $1.50 in its most recent financial statements. Which of these values is a “Level 1” measure of fair value for this share?

The “trade-off” between relevance and reliability is best managed by considering:

The concept of “recycling” within the context of bond investments: