Reference no: EM133010528
Parnell Company acquired construction equipment on January 1, 2020, at a cost of $72,000. The equipment was expected to have a useful life of four years and a residual value of $11,000 and is being depreciated on a straight-line basis. On January 1, 2021, the equipment was appraised and determined to have a fair value of $67,100, a salvage value of $11,000, and a remaining useful life of three years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in /AS 16.
Assume that Parnell Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.
Required:
Problem a. Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS.
Problem b. Prepare the entry(ies) that Parnell would make on the December 31, 2021, conversion worksheet to convert U.S. GAAP balances to IFRS. Complete this question by entering your answers in the tabs below.
|
UX, CX and Ethical innovation case study
: How Design Thinking principles were applied in the development of your proposed innovation - Alignment to the customer journey for your nominated personas
|
|
Identify an article that is not qualitative research
: How can you identify an article that is not qualitative research. Provide an overview of why you think this article is substantial in providing evidence-based s
|
|
How much will have to save each month to reach the goal
: How much will he have to save each month to reach his goal? Tim want to have 25,000 in an investment account four years from now.
|
|
How much of the second loan payment is interest
: How much of the second loan payment is interest? Bradly metals has an outstanding loan that calls for equal annual payments over seven years.
|
|
Make journal entries for equipment for the years
: Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS.
|
|
Compute the Diluted Earnings Per Share
: Suppose the corporate tax rate is 40% for the year. Compute the Diluted Earnings Per Share (EPS) for 2017 as per the IAS 33
|
|
Prepare projected statements of earnings
: As Arthur Greenway, Prepare projected Statements of Earnings. Statements of Retained Earnings, and Balance Sheets for 2018 and 2019.
|
|
What is the amount of inventory at the end of the year
: Ending inventory is twice as much as the beginning. The income after tax of 35% for the current year is P390,000. What is the amount of inventory at the end
|
|
Which account appearing on the balance sheet
: When salaries and wages are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet
|