subdivide the land. Section 351 and Accounting Standards Codification (ASC) 845 can both be used to determine the tax treatment for their transactions. Section 351 “No gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in control of the corporation.” Accounting Standards Codification (ASC) 845 “Most business transactions involve exchanges of
Premium Asset Balance sheet Exchange
ABONG Rose AKENJI 13200149 Question 1 Is the Enterprise a VIE as defined in the Codification Master Glossary? If so‚ what criteria cause it to be deemed a VIE? Assume that (1) the Enterprise does not qualify for any scope exceptions and (2) the equity investment by the Nominee Shareholders in the Enterprise represents equity investment at risk. The enterprise is a VIE as defined in the codification of the master glossary. From the narrative‚ nominee equity holders do not absorb the losses of the
Premium Generally Accepted Accounting Principles
10-7. The FASB undertook the codification project in order to: (1) Simplify user access by codifying all authoritative U.S. GAAP in one spot; (2) Ensure that the codified content accurately represents authoritative U.S. GAAP; and (3) Create a codification research system that is up-to-date for the released results of standard-setting activity. 10-19. Tax holidays are discussed in 740-10-S50‚ 740-10-S99‚ 323-740-10-S99 (Intersection Topic) and 740-10-25. 10-20. ASC 740-10-25-5 et seq. requires that
Premium Taxation Taxation in the United States Tax
Inc. John‚ E.‚ & Bill‚ C. B. (1997). The FASB ’s New Earnings per Share Standard. The CPA Journal. Retrieved from http://www.nysscpa.org/cpajournal/1997/0897/aug/F20897.htm Kelliher‚ J. (1996). The FASB and the IASC Redeliberate EPS. Journal of Accountancy. Retrieved from http://www.allbusiness.com/professionalscientific/accounting-tax/541912-1.html FASB ASC Paragraph 260-10-45-2 [‚ Earnings Per Share – Overall – Other Presentation Matters] FASB ASC Paragraph 260-10-45-11 [‚ Earnings Per Share
Premium Management Balance sheet Costs
ship as of December 31‚ 2010? In addressing this question‚ consider: The following are the required steps to identify‚ recognize and measure the impairment of a long-lived asset (group) to be held and used: Step 1: Indicators of impairment — FASB ASC 360-10-35-21 “A long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.” In this case‚ there is a possibility of impairment because
Premium Asset Goodwill Generally Accepted Accounting Principles
Case 11-3 Master of the Universe Saturn Inc. (“Saturn”) and Venus Inc. (“Venus”)‚ two unrelated parties‚ form Jupiter‚ a joint venture. Saturn owns 51 percent of Jupiter and Venus owns 49 percent of Jupiter. The purpose of Jupiter is to own and operate organic clothing design and manufacturing facilities and sell organic clothing to unrelated retailers. When Jupiter was formed‚ Saturn contributed $561 million to Jupiter and Venus contributed four manufacturing facilities with an assembled
Premium Copyright Planet All rights reserved
significant growth. Your supervisor has asked you to research leases and lease structure issues on the Financial Accounting Standards Board (FASB) website‚ in particular the current practice and thought related to direct financing‚ sales type‚ and operating leases. Write a 700- to 1‚050-word memo addressed to your supervisor that summarizes your FASB research results. Keep the memo brief while exploring the issues. Remember that both the client and the supervisor have limited time‚ and you
Premium Financial Accounting Standards Board
Chapter 10 Property‚ Plant‚ and Equipment and Intangible Assets: Acquisition and Disposition Questions for Review of Key Topics Question 10-1 The difference between tangible and intangible long-lived‚ revenue-producing assets is that intangible assets lack physical substance and they primarily refer to the ownership of rights. Question 10-2 The cost of property‚ plant‚ and equipment and intangible assets includes the purchase price (less any discounts received from the seller)
Premium Depreciation Generally Accepted Accounting Principles Balance sheet
Case 13-3: Summary: This case is about a company named Hearts ‘R Us. This company provides research and development for medical devices. According to the information provided the company is in its early stage and has no products in the market. They have developed a Heart Valve System that would be revolutionary in the market if is approved. Also there’s another company called Bionic Body that is a biological medical device company‚ they have another product that would work well with this new
Premium Stock Preferred stock Stock market
costs for the equipment upgrades are expected to be $15 million. In ASC 230-10-45‚ which deals with the overall presentation of the statement of cash flows‚ Paragraph 13c says that “… the following are cash outflows for investing activities: c. Payments at the time of purchase or soon before or after purchase to acquire property‚ plant‚ and equipment and other productive assets…” To confirm that an EA is a productive asset‚ FASB Concept No. 6 Paragraph 26 states that “An asset has three essential
Premium Asset Balance sheet Goodwill