2019-01-25T11:00:33+00:00 Assignments

Prepare a partial balance sheet, intangibles section, a good form with required disclosures, for Tracer for 2015

This paper concentrates on the primary theme of Prepare a partial balance sheet, intangibles section, a good form with required disclosures, for Tracer for 2015 in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.

Financial Accounting

Financial Accounting

Question:

During  2015, Tracer Inc. purchased a franchise from Trail Holdings Corp. for $200,000. The contract to purchase also includes an obligation for Tracer to pay to Trail Holdings 1.5% of the revenue from the franchise operations annually. Revenue from the franchise for 2015 was $50,000. Tracer estimates the useful life of the franchise to  be 16 years and takes a full year’s amortization in the year of purchase. Tracer incurred the following research costs in 2015.

Materials and equipment         $25,000

Indirect costs                              $5,000

Tracer’s year end is Dec. 3, and reports under ASPE

Required:

a) Prepare a partial balance sheet, intangibles section, a good form with required disclosures, for Tracer for 2015.

b) Prepare a single-step income statement, a good form for Tracer for 2015. Income tax rate is 27%

c) In January 2016, the franchise business suddenly declined sharply and Tracer’s management gathered the following data about the franchise for purposes of an impairment test:

Fair value                                                                $150,000

Fair value less costs to sell                                 $140,625

Value in use                                                           $225,000

Undiscounted future cash flows                       $168,750

Analyze and determine if the franchise is impaired as at January 2016 and, if so, the impairment amount


0% Plagiarism Guaranteed & Custom Written, Tailored to your instructions


International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

UK Registered Company # 11483120


100% Pass Guarantee

Order Now

STILL NOT CONVINCED?

We've produced some samples of what you can expect from our Academic Writing Service - these are created by our writers to show you the kind of high-quality work you'll receive. Take a look for yourself!

View Our Samples

corona virus stop
FLAT 25% OFF ON EVERY ORDER.Use "FLAT25" as your promo code during checkout