The amount of the payment on May 12 will be the full amount of $230.00
6/10 n/30 means a 6% discount <em>if </em>paid within 10 days and the net amount is due within 30 days. Since the payment was made after 10 days there would be no discount, just the full amount due.
Answer:
Other than Temporary Impairment loss (Dr.) $400,000
Discount on bond investment (Cr.) $400,000
Fair value Adjustment (Dr.) $150,000
Net unrealized holding gain/losses - OCI (Cr.) $150,000
Explanation:
To record impairment loss on bond we debit the Other than temporary impairment loss account debit and discount on bond investment as credit by $400,000 which is the decline in fair value of Taylor bond.
To record the impairment loss recognized due to fair value method we debit the Fair value adjustment account as debit and Unrealized holding gains/losses as credit by $150,000.
This scenario would best be viewed as a QUID PRO QUO SEXUAL HARASSMENT.
Quid pro quo sexual harassment is the type of sexual harassment that occurs in the workplace, in which an higher authority figure offers or drop a hint that he or she will give rewards to an employee under him [or her] in exchange for sexual gratification.
