Walt Co. adopted the U.S. GAAP dollar-value LIFO inventory method as of January 1, when its inventory was valued at USD500,000. Walt's entire inventory constitutes a single pool. Using a relevant price index of 1.10, Walt determined that its December 31 inventory was USD577,500 at current year cost, and USD525,000 at base year cost. What was Walt's dollar-value LIFO inventory at December 31?

1 .During Year 1, Abaco Co., the 100% owned subsidiary of Walker Inc., sold merchandise to Walker at a 25% markup over its cost. Intercompany sales to Walker totaled USD800,000 during Year 1. On December 31, Year 1, Walker held USD200,000 of the inventory purchased from Abaco in its ending inventory. In Walker's December 31, Year 1 elimination of the intercompany sales transaction, the intercompany profit that must be eliminated from ending inventory is:

A USD40,000 B USD160,000 C USD120,000 D USD200,000

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2 .On December 31, Year 1, Largo, Inc. had a USD750,000 note payable outstanding, due July 31, Year 2. Largo borrowed the money to finance construction of a new plant. Largo planned to refinance the note by issuing long-term bonds. Because Largo temporarily had excess cash, it prepaid USD250,000 of the note on January 12, Year 2. In February Year 2, Largo completed a USD1,500,000 bond offering. Largo will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during Year 2. On March 3, Year 2, Largo issued its Year 1 financial statements. What amount of the note payable should Largo include in the current liabilities section of its December 31, Year 1, balance sheet?

A USD250,000 B USD0 C USD750,000 D USD500,000

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3 .On April 1, Aloe, Inc. factored USD80,000 of its accounts receivable without recourse. The factor retained 10% of the accounts receivable as an allowance for sales returns and charged a 5% commission on the gross amount of the factored receivables. What amount of cash did Aloe receive from the factored receivables?

A USD72,000 B USD68,000 C USD68,400 D USD76,000

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4 .On December 1, 1992, Alt Department Store received 505 sweaters on consignment from Todd. Todd's cost for the sweaters was USD80 each, and they were priced to sell at USD100. Alt's commission on consigned goods is 10%. At December 31, 1992, 5 sweaters remained. In its December 31, 1992, balance sheet, what amount should Alt report as payable for consigned goods?

A USD49,000 B USD45,000 C USD45,400 D USD40,400

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5 .Based on a physical inventory taken on December 31, Chewy Co. determined its chocolate inventory on a FIFO basis at USD26,000 with a replacement cost of USD20,000. Chewy estimated that, after further processing costs of USD12,000, the chocolate could be sold as finished candy bars for USD40,000. Chewy's normal profit margin is 10% of sales. Under the IFRS lower of cost or net realizable value rule, what amount should Chewy report as chocolate inventory in its December 31 balance sheet?

A USD26,000 B USD20,000 C USD28,000 D USD24,000

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7 .Tomson Co. installed new assembly line production equipment at a cost of USD175,000. Tomson had to rearrange the assembly line and remove a wall to install the equipment. The rearrangement cost USD12,000 and the wall removal cost USD3,000. The rearrangement did not increase the life of the assembly line but it did make it more efficient. What amount of these costs should be capitalized by Tomson?

A USD190,000 B USD187,000 C USD178,000 D USD175,000

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8 .On January 2, Year 1, Reed Co. purchased a machine for USD800,000 and established an annual depreciation charge of USD100,000 over an eight-year life. During Year 4, after issuing its Year 3 financial statements, Reed concluded that: (1) the machine suffered permanent impairment of its operational value, and (2) USD200,000 is a reasonable estimate of the amount expected to be recovered through use of the machine for the period January 1, Year 4, through December 31, Year 8. In Reed's December 31, Year 4 balance sheet, the machine should be reported at a carrying amount of:

A USD0 B USD160,000 C USD400,000 D USD100,000

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9 .Last year, Katt Co. reduced the carrying amount of its long-lived assets used in operations from USD120,000 to USD100,000, in connection with its annual impairment review. During the current year, Katt determined that the fair value of the same assets had increased to USD130,000. What amount should Katt record as restoration of previously recognized impairment loss in the current year's financial statements under U.S. GAAP?

A USD30,000 B USD20,000 C USD0 D USD10,000

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10 .Lease A does not contain a bargain purchase option, but the lease term is equal to 90 percent of the estimated economic life of the leased property. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property. How should the lessee classify these leases under U.S. GAAP?

A Lease A Operating lease；Lease B Operating lease B Lease A Capital lease；Lease B Capital lease C Lease A Capital lease；Lease B Operating lease D Lease A Operating lease；Lease B Capital lease

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