How you explain the difference in income and total assets

Assignment Help Accounting Basics
Reference no: EM133186411

Question - On January 2, 2016, SaulGroup purchased equipment at a cost of $5 million. The equipment has a five-year life, no residual value, and is depreciated on a straightline basis.

On January 2, 2018, the fair value of the equipment (net of any accumulated depreciation) is determined as $6 million.

1. If the revaluation model is applied for measurement subsequent to initial recognition under IFRS, what is the impact the equipment has on SaulGroup's income in Years 2016 - 2020 using (1) IFRS and (2) U.S. GAAP?

2. How would you explain the difference in income, total assets, and total stockholders' equity using IFRS and U.S. GAAP over the period of Years 2016 to 2020?

Reference no: EM133186411

Questions Cloud

Find the equation which gives the number of books : A publishing company finds that, when it prices its computer books at $20 per book, Find the equation which gives the number of books
Calculate the standard direct material cost per batch : Calculate the standard direct material cost per batch of fudge drops. Calculate the standard direct material (DM) cost per batch of fudge drops
What is the implied price of holding money : Refer to the table below to answer question - What is the implied price of holding money in a checking account rather than investing in corporate bonds
How much profit would the company lose if it sold division : Question - A company is considering selling one of its operating divisions. How much profit would the company lose if it sold the division
How you explain the difference in income and total assets : How would you explain the difference in income, total assets, and total stockholders' equity using IFRS and U.S. GAAP over the period of Years 2016 to 2020
Is Barbara behaving ethically by making up the bonus : Is Barbara behaving ethically by making up the bonus with unnecessary overtime? Why or why not
What is the cost of goods available for sale during the year : Incurred various manufacturing overhead costs {e.g., depreciation, insurance, and utilities], $470,000. What is the cost of goods available for sale
Federal funds rate affect the unemployment rate : The Federal Reserve controls the money supply through monetary policy actions. How do changes to the federal funds rate affect the unemployment rate?
What is the avoidable interest for Jordan River Company : On January 2, 2021, Jordan River began construction of a new citrus processing plant. What is the avoidable interest for Jordan River Company

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd