51.              Presented below is information related to Peach Corporation’s defined benefit pension plan for calendar 2017. The corporation uses IFRS. Defined benefit obligation, Jan 1……………..$200,000 Fair value of plan assets, Jan 1………………180,000 Current service cost………………………27,000 Contributions to plan……………………..25,000 Actual and expected return on plan assets………9,000 Benefits paid to retirees……………………40,000 Interest (discount) rate…………………….10% The fair value of the plan assets at December 31, 2017 is a) $187,000. b) $174,000. c) $165,000. d) $149,000. 52.              Presented below is information related to Kiwi Ltd. for calendar 2017. The corporation uses IFRS. Defined benefit obligation, Jan 1……………..$720,000 Fair value of plan assets, Jan 1………………700,000 […]

41.              Initial direct costs are a) costs incurred by a lessee that are directly associated with negotiating and arranging a lease. b) expensed in the year of incurrence by the lessor in a financing-type lease. c) spread over the term of a sales-type lease by the lessee. d) deferred and allocated over the term of an operating lease in proportion to the amount of rental (lease) income that is recognized. 42. When is a lease recognized as an operating lease under ASPE? a) if it is of low-value to the corporation b) if it is less than one year c) […]

21) Taxable income of a corporation a)differs from accounting income due to differences in intraperiod allocation between the two methods of income determination. b) differs from accounting income due to differences in interperiod allocation and permanent differences between the two methods of income determination. c) is based on generally accepted accounting principles. d) is reported on the corporation's income statement. 22) Allocating income tax expense or benefit for the period (both current and deferred) to the income and other statements to reflect transactions that attract income tax is known as a)intraperiod tax allocation. b) interperiod tax allocation. c) current tax […]

79) When making a pricing decision, it is not necessary to separate costs into fixed and variable. 80) Cost-plus price minus desired profit equals total cost. 81) When using a target costing approach, the company starts with revenue at market price, and then subtracts its desired profit, to yield the target total cost. 82) Companies often try to gain more control over pricing by attempting to differentiate their products. 83) Product differentiation allows companies to become more of a price-setter, and less of a price-taker. 84) When setting prices, managers need to consider all costs. 85) Managers need to consider […]

110) The selling price of a Road King bicycle is $700, unit variable costs are $350, and total fixed costs are $12,600. How many bicycles will Road King need to sell to breakeven? A) 25,200 B) 12 C) 36 D) 18 111) The selling price of a Road King bicycle is $700, unit variable costs are $350, and total fixed costs are $12,600. What are breakeven sales in dollars? A) $8,400 B) $36 C) $12,600 D) $25,200 112) Barbara's Candles provides the following information about its single product. Targeted operating income$55,000 Selling price per unit$100.00 Variable cost per unit$60.00 Total […]