Answer:
$65,000
Explanation:
Borasco was the person who purchased the land for $65,000 in which the land was later transferred to Alvo. Therefore no gain or loss is been recognized in this liquidation because it subsidiary is been liquidated by the parent which is why the basis of land is said to be carryover basis of $65,000 at the end of the transaction.
Answer:
A) $560 million
Explanation:
First lets calculate the NPV of the cash stream by this investment,
PV Cash stream = Cash flow/ (r-g), where r = avg cost of capital and g = growth of the cash stream.
PV = 50 / (0.09 - 0.04) = $1000 million
We assume that external finance issuance costs are payable as a part of initial outlay of the project and so,
Total initial outlay = 420 + 20 = $440 million
NPV of the project then,
NPV = 1000 - 440 = $560 million
Hope that helps.
Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $500,000
To Bond Payable $500,000
(Being the issuance of the bond is recorded)
On Dec 31
Bond Payable $500,000
Loss on redemption $15,000 ($500,000 × 3%)
To Cash ($500,000 × 103%) $515,000
(Being the redemption of the bond is recorded and the remaining balance or we can say balancing figure is debited to loss on redemption)
Answer:
$1,076,000
Explanation:
The computation of the carrying value of the bonds is shown below:
= Face value of the bond + unamortized bond premium
= $1,060,000 + $16,000
= $1,076,000
We simply added the face value of the bond and the unamortized bond premium so that the carrying value of the bond could come
All other information which is given is not relevant. hence, ignored it
IT IS LETTER C BECAUSE THE OTHER ONES HAVE NOTHING TO DO
