Prepare a reconciliation of lilys stockholders equity of

Assignment Help Finance Basics
Reference no: EM13576380

Prepare a reconciliation of Lily's stockholders' equity of $100,000 to U.S. GAAP. Ignore income taxes.

The following financial information is for Lily Company, a non-U.S. firm with shares listed on a U.S. stock exchange.

Net income, computed according to home country GAAP                                

$ 10,000

Stockholders' equity, computed according to home country GAAP                           

100,000

Research and development costs last year of $80,000; amortization

 

of these costs this year (same amortization amount as last year)                          

16,000

Interest expense                                                               

4,700

If Lily were following U.S. GAAP, the entire $80,000 in research and development costs would have been expensed immediately last year when it was incurred. Under U.S. GAAP, the entire $4,700 in interest expense would have been capitalized. There was interest expense of $2,000 recognized in the prior year in association with the same project; the associated construction is not yet completed, so no depreciation would have been recognized. Reconcile Lily's net income of $10,000 to U.S. GAAP. Ignore income taxes.

Reference no: EM13576380

Questions Cloud

Set up the amortization schedule for a five-year 1 million : set up the amortization schedule for a five-year 1 million 9 percent loan that requires equal annual end-of-year
Trevi corporation recently reported an ebitda of 31975600 : trevi corporation recently reported an ebitda of 31975600 million and 9566600 million of net income. the company has
On january 1 helmut pays 2000 for a 10 capital profits and : 1 identify which of the following statements is true. a. a partnership can be an s corporation shareholder. b. a
If a result is significant at the 1 level is it also : if a result is significant at the 1 level is it also always signicant at the 5 level? if a result is significant at the
Prepare a reconciliation of lilys stockholders equity of : prepare a reconciliation of lilys stockholders equity of 100000 to u.s. gaap. ignore income taxes.the following
Company abc was formed on january 1 2009 by selling and : company abc was formed on january 1 2009 by selling and issuing 25000 shares of 12 par value common stock at 15 per
Material labor and overhead are used to calculate the : material labor and overhead are used to calculate the standard cost. what are some actions a company can take to lower
Barry dan and edith together form a new corporation barry : 1.regulations are a. equal in authority to legislation if statutory b. equal in authority to legislation c. presumed
Return on sales for long pond is lower in 2008 than in 2007 : comparative income statements for long pond company for 2008 and 2007

Reviews

Write a Review

Finance Basics Questions & Answers

  If the fed decides to raise interest rates next year what

if the fed decides to raise interest rates next year what effect would rising rates have upon the npv calculation and

  The bond pays 3000 every six months the current market

you have an opportunity to buy a 1000 bond which matures in 10 years. the bond pays 30.00 every six months. the

  What amount of gain or loss does ron realize on the form

Ron and Hermione formed Wizard Corporation on January 2.  Ron contributed cash of $200,000 in return for 50 percent of the corporation’s stock.  Hermione contributed a building and land with the following fair market values and tax-adjusted bases in ..

  What is the stock worth today

WSU Inc. is a young company that does not yet pay a dividend. You believe that the company will begin to pay dividends 5 years from now, and that the company will then be worth $50 per share. If your required rate of return on this risky stock is ..

  Identify the industry that each of the companies a b and c

selected ratios for three different companies that operate in three different industries merchandising pharmaceuticals

  Explain the concept of company and bank cash balances

Explain the concept of company and bank cash balances. What are the two types of delays in the movement of money among depositors and banks?

  Gem systems has recently issued preferred stock the stock

gem systems has recently issued preferred stock. the stock has a 12 annual dividend based on a par value of 100 per

  Suppose jc penneys has a nonmaturing perpetual preferred

suppose jc penneys has a nonmaturing perpetual preferred stock outstanding that pays 1.56 quarterly dividend and has a

  What do you think about the dilemma facing mark miller

what do you think about the dilemma facing mark miller? Does this case present an ethical issue? if so, to which party or parties? if you could act as the ultimate authority in this situation, what would you do?

  You own a stock portfolio invested 35 percent in stock q

you own a stock portfolio invested 35 percent in stock q 20 percent in stock r 25 percent in stock s and 20 percent in

  You are hired as a consultant by starpucks the company

you are hired as a consultant by starpucks. the company would like to experiment locally with a new marketing strategy

  Solve the investments and cost volume profit analysis

Objective type questions on investments and cost volume profit analysis and the fixed costs of the Maintenance Department are determined by the number of cases produced by the operating departments during the peak period

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