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sdas [7]
3 years ago
14

Sapporo K.K. was sued by a competitor in late 2017, and company management concluded that there was a 55 percent probability tha

t the company would lose the lawsuit. The best estimate of the loss on December 31, 2017, was 4,000,000 yen. In 2018, the lawsuit is concluded with Sapporo paying its competitor 5,000,000 yen on May 15, 2018.a. Determine the appropriate accounting for this lawsuit for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP.b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert IFRS balances to U.S. GAAP.

Business
1 answer:
Sophie [7]3 years ago
8 0

Answer

The answer and procedures of the exercise are attached in two images.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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On March 2, 2015, Best Buy co. announced that it planned to repurchase up to $1 billion of its common shares. The company also a
abruzzese [7]

Answer:

Follows are the solution to this question:

Explanation:

The company sold the quantum dot produce will have a huge amount of money in the company, shareholders may have differing opinions to use that money the holds the surplus. As capital becomes kept, this hardly increases the value of a business or takes the investors through their pockets.

Position of the investor on (repurchasing, earnings)

Payout and buyback of shares are considered a factor influencing shareholders' interest and some factors are based on investor interest.

Current income source

Many investors can only be the source of revenue for such investors so that they'd prefer to have a regular dividend. Then the more current revenue you earn its most beneficial is a unique dividend. Share buybacks as an opportunity to share in order to collect large sums of cash.

Productive investments value

Those who become shareholders that must increase the asset's lengthy-term price, — for example stock values by companies investing in positive NPV ventures and in this case increase the interest of existing investors.

Improved future dividend

Just after the purchase of shares in share price issuance, a number of shares will be limited, and effective dividends rise per share. It means that an investor will acquire a further equity interest in the business by buying back preferred stock.

Focused on the hypotheses of dividends, repurchases, or portion share price plus repurchases, there are many mainly three opinions.

Many people would prefer the $0.51 dividend payment as a sum of money that was received in the case of a dividend. And at the same time, there will be an idea that the dividends must be paid regularly as well as the remaining cash must buy safely.

7 0
3 years ago
What is one advantage of having 2 costs pools for each service department?
Anna007 [38]
Having two cost pools for each service department allows costs to be allocated more directly on the basis of the cost drivers used to produce each output. This will result in increased product cost accuracy. This will also make it easier for managers to monitor and analysis cost behaviour.
4 0
3 years ago
The role of the financial manager is closely related to three main cash-related activities: Financing Investing Operating.
dem82 [27]

Answer:

b. False

Explanation:

The role of financial manager has different perspectives, ensuring that the required funding for positive NPV projects  is available such that the firm can increase its shareholders' wealth by investing in profitable investment opportunities.

Investing means when the funds are made available , the manager must priotize those projects with higher opportunities over those with lower growth opportunities.

Lastly, the financial manager is responsible for dividend decisions, what fraction of earnings should be paid out to shareholders as dividends)not operating decisions)

8 0
3 years ago
City Auto Parts recently traded in store fixtures. The exchange had commercial substance. The old fixtures had a cost of $48,000
IRISSAK [1]

Answer:

The correct option is true

Explanation:

The book value of the old fixtures at the date of exchange which is the cost less accumulated depreciation till date is computed thus:

Book value of old fixtures=$48,000-$14,000=$34000

Expected cash payable by the company for the new fixtures is the market value of the new fixtures minus the carrying value of the old fixtures.

Expected cash=$117,000-$34,000=$83,000.00  

Loss on the exchange =cash paid -expected cash payable=$101,000-$83,000=$18000

5 0
3 years ago
The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The annual operat
Thepotemich [5.8K]

Answer:

-$24,900

Explanation:

Solution

Given:

The annual payment is defined as:

A = F [i /(1 + i)^n -1

Where,

F = The sum of amount accumulated

i = The interest rate (annual)

n = the number of years

The standard notation equation becomes this

=A = F (A/F, i, n)

Now,

The annual payment  is A = P [ i(1 + i)^n / (1 + i)^n -1

where

P = The present value,

i = The interest rate (annual)

n = the number of year

The standard notation equation becomes this

=A = P (A/P, i, n)

We recall that,

The first cost P is $84,000.

Now,

A = $13,000, S = $9,000,  n = 10 years, and i = 8 %

Thus,

AW =- 84000 ( A/ P 8% 10 ) - 13000 + 9000 (A/F, 8%, 10)

=-84000 (0.149) - 13000 + 9000 (0.069)

= -$24,900

8 0
3 years ago
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