五、On December 31, 2016, Flessel plc issues 120,000 share-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its shares and a pre-established price of $10. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2017； $1 on December 31, 2018； $11 on December 31, 2019； and $9 on December 31, 2020. The service period is 4 years, and the exercise period is 7 years. Instructions (8%) Assuming that all 120,000 SARs are exercised, please prepare all the entry on December 31, 2020.

10. A trademark was acquired at the beginning of 2018 for $50,000. No amortization has been recorded since its acquisition. The maximum allowable amortization period is 10 years. Instructions (20%)  Assume the trial balance has been prepared but the books have not been closed for 2019. Assuming all amounts are material, prepare journal entries showing the adjustments that are required. (Ignore income tax considerations.)

二、Cleveland Group leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2019. Terms of the lease require payments of $48,555 each January 1, starting January 1, 2019. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Cleveland of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendo’s incremental borrowing rate is 8%, and Cleveland’s implicit interest rate of 8% is known to Abriendo. Instructions (20%) a. Prepare all the entries related to the lease contract and leased asset for the year 2019 for the lessee and lessor, assuming Abriendo uses straight-line amortization for all similar leased assets, and Cleveland depreciates the asset on a straight-line basis with a residual value of $15,000. b. How should be presented in the statement of financial position, the income statement, and the related notes of both the lessee and the lessor at December 31, 2019.

三、Hemera SA had a defined benefit obligation of $3,100,000 and plan assets of $2,900,000 at January 1, 2019. Hemera’s discount rate is 6%. In 2019, actual return on plan assets is $160,000. Hemera contributed $200,000 to the pension fund and paid benefits of $150,000. Service cost for 2019 is $50,000； Hemera reports that the defined benefit obligation at December 31, 2019, is $3,600,000. Instructions (12%) Determine (a) pension expense for 2019； (b) pension assets at December 31, 2019； and (c) pension asset and liability gains and losses.

四、On July 1, 2019, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2021, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2019, 2020, and 2021.  At 12/31/19 At 12/31/20 At 12/31/21 Contract costs incurred to date $ 300,000 $1,200,000 $2,100,000 Estimated costs to complete contract 1,200,000 800,000 -0- Billings to Gumbel 300,000 1,100,000 1,850,000 Instructions (12%) Using the percentage-of-completion method, compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2019, 2020, and 2021. (Ignore income taxes.)

六、Halvor Corporation is having financial difficulty and therefore has asked Frontenac National Bank to restructure its $5 million note outstanding. The present note has 3 years remaining and pays a current rate of interest of 10%. The present market rate for a loan of this nature is 12%. The note was issued at its face value. Instructions (16%) Presented below are three independent situations. Prepare the journal entry that Halvor would make for each of these restructurings. a. Frontenac National Bank agrees to take an equity interest in Halvor by accepting ordinary shares valued at $3,700,000 in exchange for relinquishing its claim on this note. The ordinary shares have a par value of $1,700,000. b. Frontenac National Bank agrees to accept land in exchange for relinquishing its claim on this note. The land has a book value of $3,250,000 and a fair value of $4,000,000. c. Frontenac National Bank agrees to modify the terms of the note, indicating that Halvor does not have to pay any interest on the note over the 3-year period.

七、Yu Ltd. lost most of its inventory in a fire in December just before the year-end physical inventory was  taken. Company records disclose the following. Inventory (beginning) $ 80,000 Sales $ 415,000 Purchases 290,000 Sales returns 21,000 Purchase returns 28,000 Gross profit % based on net selling price 35% Merchandise with a selling price of $30,000 remained undamaged after the fire, and damaged merchandise has a residual value of $8,150. The company does not carry fire insurance on its inventory. Instructions (6%) Please computing the fire loss incurred.

八、根據財務報導觀念架構，請分別列出 (a) 基本品質特性及 (b) 強化性品質特性為 何? (6%)

1. 組織的特性包括資本、成員及組織結構，唯有擁有這三種特性，才能成為組織。

2. 賽門(Herbert Simon)提出了限制理性的概念，認為個人不可能純理性的做出複雜的決 策。

3. 傳統目標建立(traditional goal setting) 的方式，是由下而上設定目標。