Chapter 9: Q15DQ (page 428)
Assume that a company buys another business and pays for its goodwill. If the company plans to incur costs each year to maintain the value of the goodwill, must it also amortize this goodwill?
Goodwill will not be amortized, but only checked for impairment.
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Ticketsales, Inc., receives $5,000,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales.
Refer to Google’s balance sheet in Appendix A. What “accrued” expenses (liabilities) does Google report at December 31, 2015?
Suppose a company has a facility located where disastrous weather conditions often occur. Should it report a probable loss from a future disaster as a liability on its balance sheet? Explain.
What is a wage bracket withholding table?
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first \(118,500 paid to its
employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 2.9% of the first \)7,000 paid to its employee. Compute BMX’s amounts for each of these
four taxes as applied to the employee’s gross earnings for September under each of three separate situations
(a), (b), and (c). (Round amounts to cents.)
Gross Pay through August Gross Pay for September
a. \( 6,400 \) 800
b. 18,200 2,100
c. 112,200 8,000
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