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Advanced Accounting - Answers and Solutions: Problem 1. D
Advanced Accounting - Answers and Solutions: Problem 1. D
Problem 1. D
Problem 2. B
A = partially secured; B = unsecured w/o priority; C = fully secured; D = unsecured with priority
Problem 3. C
Problem 4. A
Problem 5. B
Problem 6. D
Problem 7. D
Problem 8. A
Hedged item:
2,750 (48 – 43) 13,750 gain
Hedging instrument:
2,750 (43 – 49) 16,500 loss
Net forex loss 2,750
Problem 9. C
Assets:
Love’s assets at BV 900,000
Add: Goodwill 230,000
Less: Cash payments (53,000)
You’s assets at FV 695,000
Total assets 1,772,000
Problem 10. B
Ayiziel Vianney
FV of net assets 2,990,000 903,000
Retained earnings:
Acquirer’s RE + income from acquisition – related costs – stock issuance costs in excess of related APIC
4300000 + 1000 – 118500 – 69750 = P4,112,750
Problem 11. B
Page 3
Problem 12. C
Problem 13. D
Problem 14. C
Problem 15. B
(Final selling price – Selling price at split-off) – Additional processing cost = Incremental profit
(3 – 1.50) – 2.50 = (1)
Problem 16. D
40,000x = 42,000x – 28,500 14.25/60% = 23.75 total OH rate per machine hour
28,500 = 2,000x 23.75 * 40% = 9.50 Variable overhead rate per MH
x = 14.25 per machine hour
Problem 17. B
Problem 18. D
Problem 19. A
Deferred revenue:
500,000 * 3.60478 = 1,802,390
Problem 20. B