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2014, the company made the following expenditures related to this
building: March 1, $360,000; June 1, $600,000;$1,500,000;
December 1, $1,500,000. The building was completed in February
2015. Additional information is provided as follows.
7) Determine the amount of interest to be capitalized in 2014 in
relation to the construction of the building.
8) Prepare the journal entry to record the capitalization of interest
and the recognition of interest expense, if any, at December 31, 2014.
9) Busytown Corporation, which manufactures shoes, hired a
recent college graduate to work in accounting department. On the
first day of work, the accountant was assigned to total a batch of
invoices with the use of an adding machine. Before long, the
accountant, who had never before seen such a machine, managed to
break the machine. Busy town Corporation gave the machine plus
$340 to Disk Business machine Company (dealer) in exchange for a
new machine. Assume the following information about the machines.
For each company, prepare the necessary journal entry to record the
exchange.
10) Under IFRS, Sampson company, who has a non-current asset
which has been classified as held-for-sale, should
11) Miller Company, a company who uses IFRS reporting standards,
sells a non-current asset classified as held-for-sale. Which of the
following statements is true regarding the treatment of a gain on a
subsequent increase in the fair value less cost?
12) Damson Company, a company who uses IFRS reporting
standards, has a non-current asset that has been classified as held-
for-sale. When the asset no longer meets this definition, Danson
should
13) Elton Industries, a company who uses IFRS reporting standards,
has asset and liabilities of a disposal group classified as held-for-sale
shown on its statement of financial position. Which of the following
presents the best treatment for these?
14) Woodson Company, a company who uses IFRS reporting
standards, has identified a group of plant assets for disposal. On
January 1, 2014, the carrying value of these assets was $14.5 million.
The assets were revalued to $13.5 million on January 5, 2014, when
they were identified as property for the disposal group. In addition,