Quantacc carries fixed assets at revalued amounts fixed

Reference no: EM13594030

Quantacc Ltd. began operations on January 1, 2011, and uses IFRS to prepare its consolidated financial statements. Although not required to do so, to facilitate comparisons with companies in the United States, Quantacc reconciles its net income and stockholders' equity to U.S. GAAP. Information relevant for preparing this reconciliation is as follows:

1. Quantacc carries fixed assets at revalued amounts. Fixed assets were revalued upward on January 1, 2013, by $35,000. At that time, fixed assets had a remaining useful life of 10 years.

2. On January 1, 2012, Quantacc realized a gain on the sale and leaseback of an office building in the amount of $200,000. The lease is classified as an operating lease and has a term of 20 years.

3. Quantacc capitalized development costs related to a new pharmaceutical product in 2012 in the amount of $80,000. Quantacc began selling the new product on January 1, 2013, and expects the product to be marketable for a total of 5 years.

Net income under IFRS in 2013 is $100,000 and stockholders' equity under IFRS at December 31, 2013, is $1,000,000.

Required

a. Prepare a schedule to reconcile Quantacc's 2013 net income and December 31, 2013, stockholders' equity under IFRS to U.S. GAAP.

b. Provide a brief title/description for each reconciling adjustment made, indicate the dollar amount of the adjustment, and calculate total amounts for net income and stockholders' equity under U.S. GAAP.

Reference no: EM13594030

Questions Cloud

The purchasing agent of the clampett company ordered : the purchasing agent of the clampett company ordered materials of lower quality in an effort to economize on price and

The standards for direct labor for a product are 4 hours : the standards for direct labor for a product are 4 hours at 5 per hour. last month 8900 units of the product were made

Tecknik corporation has the following budgeted sales for : tecknik corporation has the following budgeted sales for the selected six-month periodjanuary unit sales is 15000

In 1969 martin and his father vince cleared the undeveloped : needing help in direction to classify the kdpg payments in relation to irc sections and rulings. thank you so

Quantacc carries fixed assets at revalued amounts fixed : quantacc ltd. began operations on january 1 2011 and uses ifrs to prepare its consolidated financial statements.

The ryan manufacturing company received its bank statement : the ryan manufacturing company received its bank statement for the month ending may31. the bank statement indicates a

How much would you have to invest today in the bank at an : 1.you have deposited 21618 in a special account that has a guaranteed interest rate of 18 per year. if you are willing

Infomal and formal organization how does informal : how does informal organization differ and resembles with formal organization? help me to narrate the solution of this

The following data relating to direct materials cost for : the following data relating to direct materials cost for november of the current year are taken from the records of tot

User Account

All Pages