Quantacc Company began operations on January 1 Year 1

and #3387
Quantacc Company began operations on January 1, Year 1, and uses IFRS to prepare its
financial statements. Quantacc reported net income of $100,000 in Year 5 and had
stockholders' equity of $500,000 at December 31, Year 5. The company wishes to determine
what its Year 5 income and December 31, Year 5, stockholders' equity would be if it had used
U.S. GAAP. Relevant information follows:• Quantacc carries fixed assets at revalued amounts.
Fixed assets were last revalued upward by $35,000 on January 1, Year 3. At that time, fixed
assets had a remaining useful life of 10 years.• Quantacc capitalized development costs related
to a new product in Year 4 in the amount of $80,000. Quantacc began selling the new product in
January, Year 5, and expects the product to be marketable for a total of five years.• Early in
January, Year 5, Quantacc realized a gain on the sale-and-leaseback of an office building in the
amount of $150,000. The lease is accounted for as an operating lease, and the term of the
lease is 20 years.Required:Calculate the following for Quantacc Company using U.S. GAAP
(ignore income taxes):a. Net income for Year 5.b. Stockholders' equity at December 31, Year
5.View Solution:
Quantacc Company began operations on January 1 Year 1 and

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