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Ksenya-84 [330]
3 years ago
10

On January 1, 2018, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The bonds had a carrying valu

e of $421,620, and Riley paid $401,937 for them. How should you account for the difference between the carrying value and the purchase price in the consolidated financial statements for 2018?
Business
1 answer:
Shalnov [3]3 years ago
7 0

Answer:

The gain on exthinguish will be       19,683

Explanation:

The bond had a carrying value of 421,620

They were purchase at                   401,937

The gain on exthinguish will be       19,683

That's because the bonds payable were purchase from third parties.

The subsidiary already issued the bond in a previous period.

When the parent company purchase the bonds, they were retired from other entities, so it is not a intra-entity transaction, therefore produces gains or losses.

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3 years ago
The government sector get its income mostly from exports to other countries.
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3 0
3 years ago
(CO 9) The Wiscow Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,74
ioda

Answer:

2.86 Q + 2,170 = overhead cost

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\left[\begin{array}{ccc}High&4,200&14,182\\Low&2,300&8,748\\Diference&1,900&5,434\\\end{array}\right]

We subtract one activity level from another, the result is telling us that 1,900 units generate 5,434 additional cost

That is variable cost we divide and get the unit variable cost

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Next we calcualte the fixed cost on any of both

Total Cost 14182

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Fixed Cost   2170

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the cost equation would be:

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5 0
3 years ago
In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,200 million of retained earnings
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Answer:

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Therefore, the dividend of $140 million were paid to shareholders during the year.

4 0
3 years ago
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