Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 15, Problem 15.24EX
To determine
Extraordinary Items: There are times when a company faces unusual and infrequent gains and losses. These are accounted and reported as extraordinary items in the financial statement.
Examples:
- Losses incurred due to natural calamities.
- Company’s property taken by a foreign government authority
- Items which do not recur in the foreseeable future
To classify: whether items are normally recurring (NR) or extraordinary (E)
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1. List five events that would likely qualify as a casualty:
2. Generally, casualty losses of personal use property are deductible only if the loss resulted from a Presidentially
declared disaster.
TrueFalse
3. Calculate the amount of the casualty loss deduction, if any, that would claimed given that a business warehouse was
completely destroyed by fire:
FMV of the warehouse before the fire
$600,000
FMV of the warehouse after the fire
$0
Basis of the warehouse
$500,000
Insurance recovery
$400,000
4. Assume the same facts as in (3) above except that the warehouse was not completely destroyed and the FMV of the
warehouse after the fire was
$450,000 and the insurance recovery was $100,000. Now what would be the amount of the casualty loss deduction?
Which of the following companies has a disclosure for which FASB ASC 450 applies, but FASB ASC 275 does not?
O
Comfort House has a loss contingency at the financial statement date, and it is remotely
A. possible that the estimate for this contingency will change by a material amount within the
next year.
B.
The Garden Foundation has an asset on which the depreciation will be recalculated due to the
life of the assets being extended.
C. The Summer Group has equipment that will be written down.
D. The Winter Group has an intangible asset that needs to be written down.
Which of the following would have an effect on the presentation of past years' comparable financial statements?
Select one:
O a. A component operation of the company is discontinued
O b. Revising the estimated life of equipment
Oc Correcting an error due to improper revenue recognition
O d. Impairment of Goodwill
Oe. Using MACRS to compute the depreciation of an asset for tax purposes
Chapter 15 Solutions
Financial & Managerial Accounting
Ch. 15 - Prob. 1DQCh. 15 - What is the advantage of using comparative...Ch. 15 - A companys current year net income (after income...Ch. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 15.1APECh. 15 - Prob. 15.1BPECh. 15 - Prob. 15.2APECh. 15 - Vertical analysis Income statement information for...Ch. 15 - Prob. 15.3APECh. 15 - Prob. 15.3BPECh. 15 - Accounts receivable analysis A company reports the...Ch. 15 - Accounts receivable analysis A company reports the...Ch. 15 - Prob. 15.5APECh. 15 - Inventory analysis A company reports the...Ch. 15 - Prob. 15.6APECh. 15 - Long-term solvency analysis The following...Ch. 15 - Prob. 15.7APECh. 15 - Times interest earned A company reports the...Ch. 15 - Prob. 15.8APECh. 15 - Prob. 15.8BPECh. 15 - Prob. 15.9APECh. 15 - Prob. 15.9BPECh. 15 - Prob. 15.10APECh. 15 - Common stockholders' profitability analysis A...Ch. 15 - Prob. 15.11APECh. 15 - Earnings per share and price-earnings ratio A...Ch. 15 - Prob. 15.1EXCh. 15 - Vertical analysis of income statement The...Ch. 15 - Common-sized income statement Revenue and expense...Ch. 15 - Vertical analysis of balance sheet Balance sheet...Ch. 15 - Prob. 15.5EXCh. 15 - Current position analysis The following data were...Ch. 15 - Prob. 15.7EXCh. 15 - Prob. 15.8EXCh. 15 - Prob. 15.9EXCh. 15 - Prob. 15.10EXCh. 15 - Inventory analysis The following data were...Ch. 15 - Inventory analysis Dell Inc. and Hewlett-Packard...Ch. 15 - Prob. 15.13EXCh. 15 - Prob. 15.14EXCh. 15 - Prob. 15.15EXCh. 15 - Prob. 15.16EXCh. 15 - Profitability ratios The following selected data...Ch. 15 - Profitability ratios Ralph Lauren Corporation...Ch. 15 - Six measures of solvency or profitability The...Ch. 15 - Five measures of solvency or profitability The...Ch. 15 - Prob. 15.21EXCh. 15 - Prob. 15.22EXCh. 15 - Prob. 15.23EXCh. 15 - Prob. 15.24EXCh. 15 - Prob. 15.25EXCh. 15 - Prob. 15.26EXCh. 15 - Horizontal analysis of income statement For 2016,...Ch. 15 - Prob. 15.2APRCh. 15 - Prob. 15.3APRCh. 15 - Nineteen measures of solvency and profitability...Ch. 15 - Solvency and profitability trend analysis Addai...Ch. 15 - Prob. 15.1BPRCh. 15 - Prob. 15.2BPRCh. 15 - Effect of transactions on current position...Ch. 15 - Nineteen measures of solvency and profitability...Ch. 15 - Prob. 15.5BPRCh. 15 - Financial Statement Analysis The financial...Ch. 15 - Prob. 15.1CPCh. 15 - Prob. 15.2CPCh. 15 - Prob. 15.3CPCh. 15 - Prob. 15.4CPCh. 15 - Prob. 15.5CP
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