Consider each of the following separate situations that arose in 20X1: . Corporation G invested $71,000 in corporate bonds as a short-term investment. The year-end 20X1 market value of the bonds is $63,500. The bonds are measured at fair value every reporting date in FVTPL. . Corporation A has the equivalent of C$201,000 cash in a bank in Elbonia. Elbonia's laws prohibit transferring the cash to the Canadian parent company. Corporation A has ongoing operations in Elbonia and uses the cash to run their operations in that country. C. Corporation B received $85,500 from a customer as advance payment for a specialized piece of manufacturing equipment that is anticipated to be delivered in 20X3. 1. Corporation C has $810,000 in notes receivable from customers. The notes mature over a two-year period. The company normally sells its products on an instalment basis that requires payments over two years. e. Corporation D received an advance payment of $50,500 for an event that will be held in 20x2. f. Corporation H holds 10,500 shares in Theo Ltd. as a long-term investment; the shares cost $13 each. At year-end 20X1, the market value is $21 per share. The shares are not actively traded and are measured using fair value through OCI. . Corporation E has negotiated a two-year $601,000 loan from its bank to finance equipment. The bank will charge 5% interest per year, compounded. The loan will be repaid in a single lump sum in 20X3, including interest. The market rate of interest is 5%. . Corporation F has a major customer that recently went into receivership. As a result of an agreement among all creditors, Corporation F will receive payment on the customer's $205,000 outstanding account in equal instalments over a four-year period.
Consider each of the following separate situations that arose in 20X1: . Corporation G invested $71,000 in corporate bonds as a short-term investment. The year-end 20X1 market value of the bonds is $63,500. The bonds are measured at fair value every reporting date in FVTPL. . Corporation A has the equivalent of C$201,000 cash in a bank in Elbonia. Elbonia's laws prohibit transferring the cash to the Canadian parent company. Corporation A has ongoing operations in Elbonia and uses the cash to run their operations in that country. C. Corporation B received $85,500 from a customer as advance payment for a specialized piece of manufacturing equipment that is anticipated to be delivered in 20X3. 1. Corporation C has $810,000 in notes receivable from customers. The notes mature over a two-year period. The company normally sells its products on an instalment basis that requires payments over two years. e. Corporation D received an advance payment of $50,500 for an event that will be held in 20x2. f. Corporation H holds 10,500 shares in Theo Ltd. as a long-term investment; the shares cost $13 each. At year-end 20X1, the market value is $21 per share. The shares are not actively traded and are measured using fair value through OCI. . Corporation E has negotiated a two-year $601,000 loan from its bank to finance equipment. The bank will charge 5% interest per year, compounded. The loan will be repaid in a single lump sum in 20X3, including interest. The market rate of interest is 5%. . Corporation F has a major customer that recently went into receivership. As a result of an agreement among all creditors, Corporation F will receive payment on the customer's $205,000 outstanding account in equal instalments over a four-year period.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 7MCQ
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