Embutido

6/6/22, 2:16 PM Intermediate Accounting 2
Intermediate Accounting 2 Total points 47/70
Qualifying Examination
The respondent's email (keanu.ortiz@lsu.edu.ph) was recorded on submission of this form.
Bond issue costs are reported on the financial statements as: * 0/1
Deferred liabilities
A reduction to Discount on Bonds Payable
Other assets
A reduction to Premium on Bonds Payable
Correct answer
A reduction to Premium on Bonds Payable
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Wright Inc. has an incentive compensation plan under which the sales *0/1
manager receives a bonus equal to 10 percent of the company’s
income after deductions for bonus and income taxes. Income before
bonus and income taxes is ₱400,000. The effective income tax is 30
percent. How much is the bonus (rounded to the nearest peso)?
₱28,886
₱26,168
₱30,108
₱40,000
Correct answer
₱26,168
On January 1, 2018, Bulb Co. issued a ₱3,000,000, noninterest-bearing *0/1

note payable in exchange for equipment. The current market rate of
interest on January 1, 2018 is 12%. The note is due in three equal annual
installments starting on January 1, 2021. What is the carrying amount of
the note on January 1, 2021?
₱1,690,051
₱1,914,725
₱2,144,492
₱2,401,831
Correct answer
₱1,690,051
In its December 31, 2021 statement of financial position, Shin Company *1/1
had income tax payable of ₱130,000 and a deferred tax asset of
₱200,000. Shin had reported a deferred tax asset of ₱150,000 on
December 31, 2020. No estimated tax payments were made during
2021. In its 2021 income statement, what amount should Shin report as
total income tax expense?
₱80,000
₱100,000
₱180,000
₱130,000
On December 1, Bianca Company’s board of directors declared a cash *1/1

dividend of ₱1.00 per share on the 50,000 ordinary shares outstanding.
The company also has 5,000 treasury shares. Shareholders of record
on December 15 are eligible for dividend, which is to be paid on
January 1.On December 1, the company should
Debit retained earnings for ₱55,000.
Make no accounting entry.
On January 1, 2021, Maricar Company agreed to grant the employees *0/1

ten vested vacation days each year, with the provision that vacation
days earned in a particular year could not be taken until the following
year. For the year ended December 31, 2021, all of the 50 employees
earned P400 per day each and earned ten vacation days each. These
vacation days were taken during the last half of 2016. What total
expense should be reported for compensated absences in 2021?
50,000
100,000
200,000
Correct answer
200,000
Refer to the image attached. * 0/1
₱680,000
₱1,205,626
₱320,000
₱1,181,208
Correct answer
₱1,181,208
Refer to the image attached. [1/4] What is the 2021 benefit expense? * 1/1
3,350,000
3,250,000
3,300,000
3,000,000
It is the deferred tax consequence attributable to a taxable temporary *1/1

difference
Current tax asset

Deferred tax liability
Current tax liability
Deferred tax asset
₱4,800,000
₱5,100,000
₱5,500,000
₱4,900,000
Which of the following statements is incorrect concerning tax assets *1/1

and liabilities?
Deferred tax assets and liabilities shall not be discounted.
Tax assets and liabilities shall be presented separately from other assets and
liabilities in the statement of financial position.
When an entity makes a distinction between current and noncurrent assets and
liabilities, it shall classify deferred tax assets and liabilities as current.
Deferred tax assets and liabilities shall be distinguished from current tax assets and
liabilities.
A pension asset is reported when * 0/1
the accumulated benefit obligation exceeds the fair value of pension plan assets, but
a prior service cost exists
pension plan assets at fair value exceed the projected benefit obligation
the accumulated benefit obligation exceeds the fair value of pension plan assets
pension plan assets at fair value exceed the accumulated benefit obligation
Correct answer
pension plan assets at fair value exceed the projected benefit obligation
At December 31, 2020, Will Corp. had 20,000 shares of ₱1 par value *0/1
treasury shares that had been acquired in 2020 at ₱12 per share. In May
2021, 123 issued 15,000 of these treasury shares at ₱10 per share. At
December 31, 2021, what amount should Will show in notes to financial
statements as a restriction of retained earnings as a result of its
treasury shares transactions?
₱ 5,000
₱240,000
₱0
₱ 60,000
Correct answer
₱ 60 000
₱ 60,000
Ches Company has a defined benefit plan. The fair value of plan assets *1/1
on January 1, 2021, was ₱1,500,000. No unrecognized net loss or gain
existed. On December 31, 2021, the fair value of the plan assets was
₱1,860,000. Benefits paid to retirees equaled ₱300,000. Company
contributions to the plan totaled ₱360,000. The settlement rate was 8
percent, and the expected long-term rate of return on plan assets was
10 percent. The actual return on plan assets was
₱150,000
₱224,000
₱300,000
₱180,000
When interest expense is calculated using the effective-interest *1/1

amortization method, interest expense (assuming that interest is paid
annually) always equal the
Carrying amount of the note multiplied by the effective interest rate.
Actual amount of interest paid.
Carrying amount of the note multiplied by the stated interest rate.
Maturity value of the note multiplied by the effective interest rate.
On December 31, 2021, Mendez, Inc. leased machinery with a fair value *1/1
of 840,000 from Cey Rentals Co. The agreement is a six-year
noncancelable lease requiring annual payments of 160,000 beginning
December 31, 2021. The lease is appropriately accounted for by Mendez
as a capital lease. Mendez's incremental borrowing rate is 11%. Mendez
knows the interest rate implicit in the lease payments is 10%. The
present value of an annuity due of 1 for 6 years at 10% is 4.7908. The
present value of an annuity due of 1 for 6 years at 11% is 4.6959. In its
December 31, 2021 balance sheet, Mendez should report a lease liability
of
751,344.
680,000.
606,528.
766,528.
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Cola Company pays all salaried employees on a biweekly basis. *1/1

Overtime pay, however, is paid in the next biweekly period. The entity
accrues salaries expense only at the December 31 year end. Last payroll
was paid on December 26, 2021, for the 2-week period ended
December 26, 2016. Overtime pay earned in the 2-week period ended
December 26, 2021 was P50,000. Remaining work days in 2021 were
December 27, 28, 29, on which days there was no overtime. The
recurring biweekly salaries total P900,000. The entity follows a five-
day work week. What amount should be recorded as liability for
accrued salaries on December 31, 2021?
270,000
320,000
540,000
590,000
If bonds are issued between interest dates, the entry on the books of *1/1
the issuing corporation could include a
debit to Interest Payable.
credit to Unearned Interest.
credit to Interest Receivable.
credit to Interest Expense.
The preemptive right of an ordinary shareholder is the right to * 1/1
Share proportionately in corporate assets upon liquidation.
Share proportionately in any new issue of shares of the same class.
Receive cash dividends before distribution to preference shareholders.
Exclude preference shareholders from voting rights.
On January 1, 2021, Jeanne Company granted the president *1/1

compensatory share options to buy 5,000 shares of ₱100 par value.
The options call for a price of ₱120 per share and are exercisable for
four years following the grant date. The president exercised the options
on December 31, 2021. The market price of the share was ₱150 on
January 1, 2021 and ₱180 on December 31, 2021. The fair value of a
similar share option with the same terms was ₱60 on the grant date.
What is the compensation expense for 2021?
₱300,000
₱100,000
₱150,000
₱75,000
Initial direct cost incurred by the lessor under a sales type lease are * 1/1
Charged to unearned income in the first period of the lease term.
Deferred and allocated over the lease term on a straight line basis.
Deferred and allocated over the lease term in proportion to the recognition of rent
revenue.
Charged to cost of sales in the first period of the lease term.
₱1,410,000
₱1,110,000
₱1,500,000
₱1,140,000
On December 1, Della Corp. declared a property dividend of *1/1

marketable securities to be distributed on December 31, to
shareholders of record on December 15. On December 1, the trading
securities had a carrying amount of ₱60,000 and a fair value of
₱78,000. What is the effect of this property dividend on Della’s
retained earnings, after all nominal accounts are closed?
₱78,000 decrease
₱60,000 decrease
₱18,000 decrease
₱0
When equipment held under an operating lease is subleased by the *1/1

original lessee, the original lessee would account for the sublease as
Sales type lease
Finance lease
Operating lease
Direct financing lease
Refer to the image attached. [4/4] What is the net remeasurement gain *0/1
or loss in OCI?
600,000 gain
600,000 loss
250,000 loss
150,000 gain
Correct answer
250,000 loss
Which of the following statements is incorrect? * 0/1
Minimum (corridor) amortization of net unrecognized gain or loss is allowed for

postretirement benefit plans
Actuarial gains and losses are recognized immediately
Past service costs are recognized immediately
Gains and losses on settlement of defined benefit retirement plans are recognized
immediately
Correct answer
Minimum (corridor) amortization of net unrecognized gain or loss is allowed for

postretirement benefit plans
In a debt restructuring that is considered as asset swap, the gain on *0/1

extinguishment is equal to the
Excess of the fair value of the asset over the carrying amount of the debt
Excess of the carrying amount of the debt over the fair value of the asset
Excess of fair value of the asset over carrying amount
Excess of the carrying amount of the debt over carrying amount of the asset
Correct answer
Excess of the carrying amount of the debt over carrying amount of the asset
Which of the following is a component of defined benefit cost? * 0/1
Amortization of transition gain or loss
Benefits paid to retirees
Interest cost
Amortization of prior service cost
Correct answer
Interest cost
An item that would create a permanent difference in pretax financial *1/1

income and taxable income would be
Paying fines for violation of laws.
Using the percentage of completion method on long-term construction contracts.
Purchasing equipment previously leased under an operating lease in prior years.
Using accelerated depreciation for tax purposes and straight line depreciation for
book purposes.
Crick Company issued 200,000 shares of ₱5 par value at ₱10 per *1/1
share. On January 1, 2021, Crick retained earnings amounted to
₱3,000,000. In March 2021, Crick reacquired 50,000 treasury shares at
₱20 per share. In June 20221, Crick sold 10,000 of these shares to its
corporate officers for ₱25 per share. Crick used the cost method to
record treasury shares. Net income for the year ended December 31,
2021 was ₱600,000. On December 31, 2021, what amount should be
reported as unappropriated retained earnings?
₱3,600,000
₱3,650,000
₱2,800,000
₱3,750,000
₱550,000
₱450,000
₱400,000
₱500,000
Correct answer
₱550,000
On January 1, 2021, Crow Co.’s estimated a present value of defined *1/1

benefit obligation of ₱440,000 based on a settlement rate of 12
percent. Pension benefits paid to retirees totaled ₱60,000. Service
costs for 2021 amounted to ₱148,000. The fair value of the plan assets
were ₱350,000 and ₱400,000 on December 31, 2020 and December
31, 2021 respectively. The projected benefit obligation at December 31,
2021, was
₱580,800
,
₱640,800
₱528,000
₱630,800
Refer to the image attached. What is the net investment on December *0/1
31, 2021?
5,954,554
5,810,000
5,684,000
5,829,054
Correct answer
5,829,054
On March 1, 2021, Rya Corp. issued 1,000 shares of its ₱20 par value *1/1
ordinary shares and 2,000 shares of its ₱20 par value convertible
preference shares for a total of ₱80,000. At this date, Rya’s ordinary
share was selling for ₱36 per share and the convertible preference
share was selling for ₱27 per share. What amount of the proceeds
should be allocated to Rya’s convertible preference share?
₱60,000
₱44,000
₱48,000
₱54,000
Which of the following is an example of a temporary differences that *0/1

would result in a deferred tax liability?
Use of straight line depreciation for accounting purposes and an accelerated rate for
income tax purposes
Investment losses recognized earlier for accounting purposes than for tax
purposes.
Rent revenue collected in advance when included in taxable income before it is

included in pretax accounting income
Use of a shorter depreciation period for accounting purposes than is used for
income tax purposes.
Correct answer
Use of straight line depreciation for accounting purposes and an accelerated rate for
income tax purposes
income tax purposes
On January 1, 2020, Wisdom Company issued its 10%, 6-year *1/1

convertible debt instrument with a face amount of ₱3,000,000 for
₱3,500,000. Interest is payable every December 31 of each year. The
debt instrument is convertible into 30,000 ordinary shares with a par
value of ₱100. The debt instrument is convertible into equity form the
time of issue until maturity. Without the conversion feature, the debt
instrument would have sold at 106. On December 31, 2021, Wisdom
Company converted 1,000,000 debt instruments by issuing 10,000
ordinary shares. As of December 31, 2021, the unamortized premium on
the debt instrument is ₱135,000. What amount should be credited to
the share premium account as a result of the conversion?
None
₱180,000
₱135,000
₱151,667
On January 1, 2021, Jeanne Company granted the president *1/1

compensatory share options to buy 5,000 shares of ₱100 par value.
The options call for a price of ₱120 per share and are exercisable for
four years following the grant date. The president exercised the options
on December 31, 2021. The market price of the share was ₱150 on
January 1, 2021 and ₱180 on December 31, 2021. The fair value of a
similar share option with the same terms was ₱60 on the grant date. By
what amount should shareholders’ equity increase as a result of the
grant and exercise of the options?
₱750,000
₱900,000
₱500,000
₱600,000
₱3,600
₱0
₱4,000
₱4,400
Correct answer
₱4,000
During 2021, Ethyl issued two hundred ₱1,000 bonds at 102; due in ten *0/1
years. One detachable share purchase warrant entitling the holder to
purchase 15 shares of Ethyl’s ordinary shares (par ₱1) was attached to
each bond. The option price is ₱15 per share. At the date of issuance,
the market value of the bonds, without the share purchase warrants,
was quoted at ₱95. The market value of each detachable warrant was
quoted at ₱50. What amount, if any, of the proceeds from the issuance
should be accounted for as part of Ethyl’s shareholders’ equity?
₱14,000
₱4,000
₱10,000
₱10,200
Correct answer
₱14,000
The 10% bonds payable of Klein Company had a net carrying amount of *1/1
₱570,000 on December 31, 2020. The bonds, which had a face value of
₱600,000, were issued at a discount to yield 12%. The amortization of
the bond discount was recorded under the effective-interest method.
Interest was paid on January 1 and July 1 of each year. On July 2, 2021,
several years before their maturity, Klein retired the bonds at 102. The
interest payment on July 1, 2021 was made as scheduled. What is the
loss that Klein should record on the early retirement of the bonds on
July 2, 2021? Ignore taxes.
₱12,000
₱33,600
₱37,800
₱42,000
An example of a “deductible temporary difference” occurs when * 1/1
Warranty expenses are recognized on the accrual basis for financial accounting
purposes but recognized for tax purposes as the warranty conditions are met.
The cost recovery method of recognizing construction revenue is used for tax
purposes but the percentage of completion method is used for financial accounting
purposes.
Accelerated depreciation is used for tax purposes but straight line depreciation is
used for accounting purposes.
The installment sales method is used for tax purposes but the accrual method of
recognizing sales revenue is used for financial accounting purposes.
₱4,400,000
₱4,300,000
₱4,200,000
₱4,100,000
Refer to the image attached. [3/3] What amount should be recognized *1/1
as accrued liability for share appreciation rights on December 31, 2022?
₱600,000
₱200,000
₱300,000
₱400,000
During 2021, Mann Company experienced financial difficulties and is *1/1

likely to default on a ₱5,000,000, 15% three-year note dated January 1,
2019, payable to Summit Bank. On December 31, 2021, the bank agreed
to settle the note and unpaid interest of ₱750,000 for 2021 for
₱4,100,000 cash payable on January 31, 2022. What amount should
Mann report as gain from extinguishment of debt in its 2021 income
statement?
₱750,000
₱900,000
₱1,650,000
₱0
Stock warrants outstanding should be classified as * 1/1
Additions to contributed capital.
Reductions of capital contributed in excess of par value.
Capital stock.
Liabilities.
In 2021, Tiger Company reported pretax financial income of *1/1

₱5,000,000. Included in the pretax financial income are ₱900,000 of
nontaxable life insurance proceeds received as a result of the death of
an officer, ₱1,200,000 of estimated warranty expense accrued on
December 31, 2021, and ₱200,000 of life insurance premiums for a
policy for an officer. No income tax was previously paid during the year
and the income tax rate is 30%. What is the income tax payable on
December 31, 2021?
₱1,290,000
₱1,230,000
₱1,650,000
₱1,500,000
Cash-settled share based payment transactions are recognized * 1/1
In equity or as liability
As liability
Neither in equity nor as liability
In equity
Treasury stock should be shown on the balance sheet as * 1/1
A reduction of the corporation’s stockholders’ equity
A current asset
A current liability
An investment asset
A deferred tax liability arising from the use of an accelerated method of *1/1
depreciation for tax purposes and the straight line method for financial
reporting purposes should be classified in the statement of financial
position as
A current liability for the portion of the temporary difference reversing within a year
and a noncurrent liability for the remainder.
A current liability.
An offset to the accumulated depreciation reported in the statement of financial

position.
A noncurrent liability.
Alfred Company leased equipment to the Nel Company on July 1, 2021, *1/1
for a ten-year period expiring June 30, 2029. Equal annual payments
under the lease are P80,000 and are due on July 1 of each year. The
first payment was made on July 1, 2021. The rate of interest
contemplated by Alfred and Nel is 9%. The cash selling price of the
equipment is P560,000 and the cost of the equipment on Alfred's
accounting records was P496,000. Assuming that the lease is
appropriately recorded as a sale for accounting purposes by Eby, what
is the amount of profit on the sale and the interest revenue that Alfred
would record for the year ended December 31, 2021?
P64,000 and P43,200
P0 and P0
P64,000 and P50,400
P64,000 and P21,600
On January 1, 2020, ABC Co. grants 1,000 share options to each of its *0/1
100 key employees conditional upon each employee remaining in ABC’s
employ over the next three years. ABC estimates that the fair value of
each share option is ₱15. On grant date, ABC estimates that no
employees will leave the company during the three-year service
period. During the three-year service period, no employees have
actually left the company. The share premium on share options
outstanding as of December 31, 2022 is:
₱1,000,000
₱0
₱1,500,000
₱500,000
Correct answer
₱1,500,000
A temporary difference which would result in a deferred tax liability is * 1/1
Accrual of warranty expense
Interest revenue on municipal bonds
Subscription received in advanced
Excess of tax depreciation over accounting depreciation
Angel Corp. declared a 5% share dividend on its 10,000, ₱2 par, issued *1/1
and outstanding ordinary shares, which had a fair value of ₱5 per share
before the share dividend was declared. This share dividend was
distributed sixty days after the declaration date. By what amount did
Angel’s current liabilities increase as a result of the share dividend
declaration?
₱2,500
₱1,000
₱0
₱ 500
West Company leased a building and received ₱4,000,000 annual *0/1

rental payment on June 15, 2021. The beginning of the lease was July 1,
2021. Rental income is taxable when received. The income tax rate is
30%. West had no other permanent or temporary differences. What
amount of deferred tax asset should West report in its December 31,
2021, statement of financial position?
₱1,200,000
₱300,000
₱600,000
₱0
Correct answer
Correct answer
₱600,000
The long-term debt section of Elmo Company’s balance sheet as of *0/1

December 31, 2018, included 9% bonds payable of ₱400,000 less
unamortized discount of ₱32,000. Further examination revealed that
these bonds were issued to yield 10%. The amortization of the bond
discount was recorded using the effective interest method. Interest
was paid on January 1 and July 1 of each year. On July 1, 2019, Elmo
retired the bonds at 105 before maturity. What is the amount of loss to
be recognized on the retirement of bonds?
₱52,400
₱0
₱20,000
₱51,600
Correct answer
₱51,600
Refer to the image attached. [1/3] What amount of compensation *0/1

expense should be recognized for 2020?
₱300,000
₱120,000
₱480,000
₱180,000
Correct answer
₱480,000
Refer to the image attached. [3/4] What is the projected benefit *1/1
obligation at December 31?
9,700,000
9,600,000
8,900,000
8,800,000
Which of the following transactions does not result in a decrease to *1/1

retained earnings?
Declaration and issuance of a stock dividend.
Correction of an error in which depreciation expense was understated in a prior

period.
Incurrence of a net loss for the period.
Acquisition of treasury stock for more than par value but less than the original
price, when the par value method is used.
When an entity amends a pension plan, past service costs should be * 1/1
Amortized in accordance with procedures used for income tax purposes.
Reported as an expense in the period the plan is amended.
Recorded in other comprehensive income.
Treated as prior period adjustment because no future periods are benefited.
Refer to the image attached. What is the financial revenue in 2021? * 1/1
609,000
735,000
693,154
577,654
If a sale and leaseback transaction results in a finance lease, PAS 17 *1/1

Leases, provides the following accounting treatment for any excess of
sales proceeds over the carrying amount:
include in the capitalized amount of the leased asset.
recognise directly in retained earnings of the seller-lessee
defer and amortize over the lease term

Immediately recognize as income by the seller-lessee
On July 1, 2021, Placer Corporation issued a five-year note payable with *1/1
a face value of ₱250,000 and a 10% interest rate. The terms of the note
require Placper to make five annual payments of ₱50,000 plus accrued
interest, with the first payment due on June 30, 2022. With respect to
the note, how much would be included in the current liabilities section
of Placer’s December 31, 2021 statement of financial position?
₱75,000
₱62,500
₱12,500
₱50,000
₱50,000
₱155,000
₱80,000
₱205,000
Coffee Co. acquired equipment from XYZ, Inc. by issuing 1,000 of its *0/1
₱10 par value ordinary shares. The equipment is carried in the books of
XYZ, Inc. at ₱15,000. Coffee Co.’s shares have a fair value of ₱14 per
share. The fair value of the equipment cannot be determined reliably.
The entry to record the receipt of the equipment includes:
Dr., Equipment ₱14,000.
Cr., Share Capital ₱14,000.
Cr., Share Capital ₱15,000.
Correct answer
On January 1, 2021, Gomez Co. issued its 10% bonds in the face amount *1/1
of ₱3,000,000, which mature on January 1, 2031. The bonds were
issued for ₱3,405,000 to yield 8%, resulting in bond premium of
₱405,000. Gomez uses the effective-interest method of amortizing
bond premium. Interest is payable annually on December 31. At
December 31, 2021, Gomez's adjusted unamortized bond premium
should be
₱377,400
₱405,000
₱304,500
₱304,500
₱364,500
Refer to the image attached. [2/4] What is the fair value of the plan *0/1
asset at December 31?
12,100,000
12,700,000
12,200,000
10,000,000
Correct answer
12,200,000
Refer to the image attached. How much is the total stockholders’ *1/1
equity?
₱6,640,000
₱6,760,000
₱6,240,000
₱6,480,000
₱120,000
₱36,000
₱156,000
₱81,000
Correct answer
₱120,000
Refer to the image attached. [2/3] What amount of compensation *1/1

expense should be recognized for 2021?
₱225,000
₱420,000
₱900,000
₱105,000
On July 1, 2021, Placer Corporation issued a five-year note payable with *1/1
a face value of ₱250,000 and a 10% interest rate. The terms of the note
require Placper to make five annual payments of ₱50,000 plus accrued
interest, with the first payment due on June 30, 2022. With respect to
the note, how much would be included in the current liabilities section
of Placer’s December 31, 2021 statement of financial position?
₱75,000
₱62,500
₱12,500
₱50,000
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6/6/22, 2:16 PM Intermediate Accounting 2

Intermediate Accounting 2 Total points 47/70

The respondent's email (keanu.ortiz@lsu.edu.ph) was recorded on submission of this form.

A reduction to Discount on Bonds Payable

A reduction to Premium on Bonds Payable

A reduction to Premium on Bonds Payable

On January 1, 2018, Bulb Co. issued a ₱3,000,000, noninterest-bearing *0/1

On December 1, Bianca Company’s board of directors declared a cash *1/1

Debit retained earnings for ₱55,000.

Make no accounting entry.

Debit retained earnings for ₱50,000.

Debit retained earnings for ₱45,000.

On January 1, 2021, Maricar Company agreed to grant the employees *0/1

Refer to the image attached. * 0/1

It is the deferred tax consequence attributable to a taxable temporary *1/1

Current tax asset

Deferred tax liability

Current tax liability

Deferred tax asset

Refer to the image attached. * 1/1

Which of the following statements is incorrect concerning tax assets *1/1

Deferred tax assets and liabilities shall not be discounted.

A pension asset is reported when * 0/1

When interest expense is calculated using the effective-interest *1/1

Carrying amount of the note multiplied by the effective interest rate.

Actual amount of interest paid.

Carrying amount of the note multiplied by the stated interest rate.

Maturity value of the note multiplied by the effective interest rate.

Cola Company pays all salaried employees on a biweekly basis. *1/1

debit to Interest Payable.

credit to Unearned Interest.

credit to Interest Receivable.

credit to Interest Expense.

The preemptive right of an ordinary shareholder is the right to * 1/1

Share proportionately in corporate assets upon liquidation.

Share proportionately in any new issue of shares of the same class.

Receive cash dividends before distribution to preference shareholders.

Exclude preference shareholders from voting rights.

On January 1, 2021, Jeanne Company granted the president *1/1

Charged to unearned income in the first period of the lease term.

Charged to cost of sales in the first period of the lease term.

Refer to the image attached. * 1/1

On December 1, Della Corp. declared a property dividend of *1/1

When equipment held under an operating lease is subleased by the *1/1

Sales type lease

Direct financing lease

Which of the following statements is incorrect? * 0/1

Minimum (corridor) amortization of net unrecognized gain or loss is allowed for

Actuarial gains and losses are recognized immediately

Past service costs are recognized immediately

Minimum (corridor) amortization of net unrecognized gain or loss is allowed for

In a debt restructuring that is considered as asset swap, the gain on *0/1

Excess of fair value of the asset over carrying amount

Which of the following is a component of defined benefit cost? * 0/1

Amortization of transition gain or loss

Benefits paid to retirees

Amortization of prior service cost

An item that would create a permanent difference in pretax financial *1/1

Paying fines for violation of laws.

Using the percentage of completion method on long-term construction contracts.

Purchasing equipment previously leased under an operating lease in prior years.

Refer to the image attached. * 0/1