Answer:
Dr Bonds payable $50,700
Dr premium on bonds payable $4,265
Cr Cash $53,000
Cr gain on bonds retirement($50,700+$4,265-$53000) $1,965
Explanation:
The premium yet to be amortized on the bond at retirement is the carrying value minus face value i.e $54,965-$50,700=$4265
The premium on bonds payable would now be debited with $4265
The cash paid on retirement would be credited to cash account
The face value of the bonds payable of $50,700 would be debited to bonds payable in order to show that the obligation has been discharged.
Answer: she should buy the cheaper house with interest because even with interest its still prob cheaper and you didnt give the interest amount
Explanation:
Answer: D
Explanation:
Total assets changes when an account is written off under the allowance method.
Answer:
c. $11,480
Explanation:
Given that
Cost recovery allowed Cost recovery allowable
Year 1 $16,000 $8,000
Year 2 $9,600 $12,800
Year 3 $5,760 $7,680
The computation of gain should Tara recognize is shown below:-
Cost $40,000
Less:
Greater cost of recovery
allowable or allowed
Year 1 $16,000
Year 2 $12,800
Year 3 $7,680 $36,480
Adjusted basis $3,520
Gain to be recognized = Residual value - Adjusted basis
= $15,000 - $3,520
= $11,480
So, for computing the gain to be recognized we simply deduct the adjust basis from residual value.
