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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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In some instances accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit in
Zepler [3.9K]

Answer:

1   $12.80

2   $16.10

3   $13.00

4   $9.20

5   $15.90

Explanation:

The unit value of inventory is to be valued  the lower of cost price and net realizable value.

Cost is the original purchase price while the net realizable value is the estimated selling price less of costs to complete and costs to sell as computed in the attached file.

Download xlsx
3 0
3 years ago
As treasury secretary, Alexander Hamilton Select one: a. wanted to eliminate the national debt. b. opposed the federal governmen
Anna35 [415]

Answer:

C) supported the creation of a national bank.

Explanation:

As the first treasury secretary, Alexander Hamilton supported the creation of a national bank because he believed it would strengthen the national economy, since the country had been recently formed.

He finally succeeded in creating the Bank of the United States in 1791, which was the first national bank of the US. The Bank of the US started operating in 1797 in Philadelphia.

5 0
3 years ago
On January 1, 2009, Diego owed $14,033 to his friend Ricardo, who was kind enough not to charge Diego any interest. Each month d
aleksandrvk [35]

Answer:

$481

Explanation:

Amount paid = Amount lent - Amount left

Amount paid = $14,033 - $8,261

Amount paid = $5,772

Average amount paid each month = Amount paid / Number of months

Average amount paid each month = $5,772 / 12

Average amount paid each month = $481

So, the average amount of Diego's monthly payments is $481.

6 0
2 years ago
The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price
sleet_krkn [62]

Answer:

C) budget constraint

Explanation:

The budget constraint is a graph of all the combinations of goods and services a consumer can purchase given prices and income of the consumer.

The absolute slope of the budget constraint is the relative price of the two goods represented on the graph.

I hope my answer helps you

8 0
3 years ago
BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it p
gayaneshka [121]

Complete Question:

BrainTrust company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost?

a. 50%

b. 75%

c. 30%

d. 100%

Answer:

a. 50%

Explanation:

In this scenario, BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is 50% of total distribution cost.

In supply chain management, the total distribution cost can be defined as the overall expenses incurred by a manufacturer in the process of delivering finished goods and services from the production stage to the final consumer. The total distribution cost can either be direct or indirect expenses incurred on insurance, handling, storage, shipping, packing and logistics.

<em>Generally, the total amount spent on the movement of goods and services from one location to another, usually accounts for half (50%) of the overall expenses incurred in total distribution cost. </em>

8 0
3 years ago
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