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Assignment Brief: The Institute of Risk Management says “Risk perception is a highly personal process of decision making, based on an individual’s frame of reference developed over a lifetime, among many other factors.” With regard to this, critically evaluate key socio-psychological factors that can influence people’s perception of a risk that is appropriate for your … Read more

On January 1, 2015, a patent with a book value of $288,000 and a remaining useful life of fourteen years was reported on the December 31, 2014 post-closing trial balance. In 2015, a further $140,000 of research costs was incurred during the research phase. A lawsuit was also brought against a competitor company regarding the … Read more

Harman Beauty Products Ltd. produces organic aromatherapy hand soaps and bath oils to retail health stores across North America. The company purchased the trademark and patented recipes for this unique line of soaps and oils, called Aromatica Organica, five years ago for $150,000. Each type of soap or oil is made from a secret recipe … Read more

Indicate whether the items below are to be capitalized as an intangible asset or expensed. Which account(s) would each item be recorded to? a. Salaries of research staff b. Market research c. Costs to test prototypes d. Borrowing costs for development of a qualifying intangible asset e. Executive salaries for time spent on development of … Read more

Schulz Ltd. purchased a machine in 2012 for $65,000. In late 2015, the company made a plan to dispose of the machine. At that time, the accumulated depreciation was $25,000 and the estimated fair value was $35,000. Estimated selling costs were $1,000. Assume that the asset qualifies as a held for sale asset at December … Read more

Landolfi Inc. owns a property that has a carrying value on December 31, 2016, of $520,000 (cost $950,000, accumulated depreciation $430,000). Required: For each of the following independent situations, prepare the journal entry to record the transaction. Assume that at no time prior to the transaction did the asset qualify as a held for sale … Read more

Michaux Ltd. purchased an office building on January 1, 2001, for $450,000. At that time, it was estimated that the building would last for 30 years and would have a residual value of $90,000. Early in 2007, a significant modification was made to the roof of the building at a cost of $30,000. This modification … Read more

Equipment purchased for $39,000 by Escarpit Inc. on January 1, 2013 was originally estimated to have a five-year useful life with a residual value of $4,000. Depreciation has been recorded for the last three years based on these factors. In 2016, the asset’s condition was reviewed, and it was determined that the total useful life … Read more

Cortazar Ltd. purchased a used delivery van for $10,000 on June 23, 2015. The van is expected to last for three years and have a residual value of $1,000. The company’s yearend is December 31, and it follows the policy of charging depreciation in partial periods to the nearest whole month of use. Required: Calculate … Read more