1. SCK Company granted the employee stock options on January1, Year1. the vesting period and fair values of options are as follows:
Number of options granted 100

Vesting periods 2years
Exercise price 20
fair value of option on Jan. 1 Year1 10
fair value of option on Dec. 31 Year1 11
fair value of option on Dec. 31 Year 2 12
share price on Jan.1 Year1 20
share price on Dec. 31 Year1 26
share price on Dec.31 Year 2 30

1. Please do the journal entry on Dec. 31 Year 1 and on Dec.31Year2. The options are equity-settled
2. Please do the journal entry on Dec. 31 Year 1 and on Dec.31Year2. The options are cash-settled
3. Please do the journal entry on Dec. 31 Year 1 and on Dec.31Year2. 30% of the options are cash-settled

2. Assume that jk Company has adopted the revaluation model for its property, plant, and equipment. Cost and fair values are as follows:
Land. Buildings

cost 1000000 735000
fair value at the end of year1 1100000 600000
fair value at the end of year2 1200000 1000000
fair value at the end of year3 1100000 720000

1. What amount should be recorded into revaluation surplus ( or loss on revaluation) for land at the end of Year 1
2. Please do all necessary journal entries at the end of Year1
3. What is the net change in comprehensive income for Year 1
4. What is the net change in net income for Year 1
5. Please do all necessary journal entries at the end of Year2
6. What is the net change in comprehensive income for Year 2
7. What is the net change in net income for Year 2
8. Please do all necessary journal entries at the end of Year3
9. What is the net change in comprehensive income for Year 3
10. What is the net change in net income for Year 3

3. K Company acquired the outstanding shares of D. Company as follows:

Ownership acquired by K. 80%
Cash paid to D by K. 500000
D's identifiable assets(fair value) 630000
D's identifiable liabilities (fair value). 205000

1. Please calculate the total amount of goodwill on the B/S this year. Also indicate the amount of goodwill that belongs to the noncontrolling interest account on B/S

2. K Co must conduct an impairment test of the goodwill related to the acquisition of Duo. The assets of Duo are the smallest group of assets that generate cash inflows and it is a separate cash generating unit.K.Co estimated the following items for the unit's net assets:

Fair value less costs to sell 370000
Present value of future cash flows 350000
Please calculate the impairment loss that should be recorded on I/S

4. The following inventory information was taken from the records of KP Inc:
Historical cost 13000
Replacement cost 7000
Expected selling price 8500
Expected selling cost 500
Normal profit margin 10%

1. Under IAS2, what should be the ending balance of inventory on B/S
2. Under IAS2, what should be the inventory loss on I/S
3. Under US GAAP, what should be the inventory loss on I/S
4. Assume that subsequent to your adjustment the expected selling price increases as follows (all the rest of the facts are the same)

What adjustment to inventory should be made under IAS2 after this event?