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NON-MONETARY STOCK TRANSACTION (CASE 1) Spartan Corporation is a successful gold mining company who has operations in the U.S., Canada and South America. They are in the process of expanding their mineral holdings through acquisition of other gold companies. The current acquisition (another U.S. gold company) which Spartan has made an offer on will be financed by the issuance of Spartan's common stock. Spartan knows that in a non-monetary transaction such as this one, the measurement and valuation of the assets should be based first, on the fair market value of the consideration given (the stock) or second, the fair market value of the consideration received ( the value of the assets) if the stock does not have a value. Since Spartan's stock sells on the stock exchange, the value of the stock (consideration given up ) should be used to value the cost of the acquisition However, Spartan tells you they would like to value the acquisition at the fair market value of the consideration received (using appraisal values, realizable values, etc) and is willing to hire an outside appraisal firm to prepare the valuation. They believe that gold stocks are traditionally overvalued because the financial markets project future discoveries of gold into the stock value and when Spartan issues the stock for the acquisition, the stock price will drop (more shares in the market will lower the price). Because this acquisition is material to Spartan's financial statements, they want to review their accounting position with the SEC before implementation. Assuming the SEC does not agree with the Company's position, answer the following questions:
What do you think is motivating the Company to want to account for the transaction this way and if they cannot, what might be the future accounting implication.
How much of Intels 2012 total provision for income taxes was current tax expense, and how much was deferred tax expense?
The company settled the option on April 20 and purchased 300,000 pounds of soybean oil on May 3 at a spot price of $1.63 per pound. During May, the soybean oil was used to produce food. One-half of the resulting food was sold in June.
Cost of ending work in process inventory in the first processing department according to the companys cost system
Do you think that expenditures on human capital should be treated as an asset or an expense? Why or why not?
Plot the date of your answer to above inthe form contribution sales graph known as profit volume graph. and to comment on the result shown and state the break- even point.
Prepare income statements for both years using both absorption and variable costing methods.
1. does your support department give significant support to other support departments and does it receive important
market value of shares as on 31st December 1993 Rs. 16,000 - depreciation to be provided on furniture at 10% motor car at 0%. Premises at 2.5%
The Lands Company has developed standards for labor. During June, 75 units were scheduled and 100 were produced. Data related to labor are.
questionpartnership starts its first year with the following capital balancesarthur capitalnbspnbsp
Determine the manufacturing costs incurred
How would you respond to Morris' solution to the pricing problem? Please explain your reasoning - how might target costing be used to help solve this pricing dilemma?
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