1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anastaziya [24]
3 years ago
9

Prince Company acquires Duchess, Inc. on January 1, 2016. At the date of acquisition, Duchess has long-term debt with a fair val

ue of $1,500,000 and a carrying amount of $1,200,000.
With respect to long-term debt consolidation worksheet adjustments in periods following the acquisition, which of the following is correct:

Multiple Choice:

Debit Interest Expense and Credit Long-Term Debt Expense.

Prince must recognize an increase in interest expense if the amount is material.

Do not adjust the value of the debt because Prince is not obligated to repay the debt.

Credit Long-Term Debt and Debit Interest Expense on the balance sheet of Duchess.

Debit Long-Term Debt and Credit Interest Expense.
Business
1 answer:
vlabodo [156]3 years ago
5 0

Answer:

Debit Interest Expense and Credit Long-term Debt Expense.

Explanation:

When Price is acquiring the Duchess Incorporation, it is agreeing upon everything that the Duchess is liable to pay and and receive from any other party. Duchess has a long term debt with a fair value of $1500000, which needs to be paid by the acquiring company now i.e. Prince. Hence, the interest expense would be paid and the long-term debt expense would be decreased by the same amount.

Therefore, for that the entries would be as follows:

                                                     Debit             Credit

Interest Expense                           $xxx

Long-term debt expense                                    $xxx

You might be interested in
Developing an awareness of your perceptions is an important part of ______________.
Ede4ka [16]
Developing an awareness of your perceptions is an important part of <span>building perceptual accuracy.

>Perceptual accuracy is c</span><span>hecking the accuracy of your perception involves separating interpretation from.
></span>Enculturation sometimes termed as acculturation is the process by which people learn the needs of their surrounding culture<span> and earn values and behaviors . I hope this helps!!

</span>
3 0
3 years ago
The type of engine that contains 2 camshafts mounted in its cylinder head is called a/an A. overhead camshaft engine. B. push ro
vampirchik [111]
C.


Hope this help! :3
6 0
3 years ago
Read 2 more answers
A. Calculate the net present value of the following project for discount rates of 0, 50, and 100%:
kherson [118]

Answer:

Net present value when discount rate is 0% = $15,750

Net present value when discount rate is 50% = $4,250

Net present value when discount rate is 100% = $0

IRR =100%

Explanation:

The net present value is the present value of after tax cash flows from a project.

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The net present value can be calculated using a financial calculator

Cash flow in year 0 = $-6,750

Cash flow for year one = $+4,500

Cash flow in year two = +18,000

Net present value when discount rate is 0% = $15,750

Net present value when discount rate is 50% = $4,250

Net present value when discount rate is 100% = $0

IRR =100%

I hope my answer helps you

5 0
3 years ago
What is the Garch model
Ilya [14]

Answer:

GARCH is a statistical model that can be used to analyze a number of different types of financial data, for instance, macroeconomic data. Financial institutions typically use this model to estimate the volatility of returns for stocks, bonds, and market indices

6 0
3 years ago
Read 2 more answers
Valuation of a swap during its life will least likely involve the:
crimeas [40]

Valuation of a swap during its life will least likely involve in the application of the principle of no arbitrage.

<h3>What is Swap?</h3>

Swap involves two individual that exchanging properties or money. This individual use different tools for the exchange as desired by them.

Arbitrage allows for sale of goods or property at the highest asking price and valuation will most like involve in it.

Therefore, valuation of a swap during its life will least likely involve in the application of the principle of no arbitrage

Learn more on swap below,

brainly.com/question/22298763

#SPJ12

3 0
2 years ago
Other questions:
  • HELPPP!!!!
    15·2 answers
  • Fergie has the choice between investing in a State of New York bond at 9.4 percent and a Surething Inc. bond at 12.0 percent. As
    10·1 answer
  • Which customers are typical for the Agriculture, Food, and Natural Resources career cluster?
    6·1 answer
  • In Florida it is customary for the seller to pay the document tax on the deed. If the sale price is $115,000, how much will the
    5·1 answer
  • A car dealer carries out the following calculations. List price $ 5,368.00 Options $ 1,625.00 Destination charges $ 200.00 Subto
    14·1 answer
  • Eve was stressed as she had got transferred to italy. she decided to look at the brighter side of her relocation by telling hers
    14·1 answer
  • What is the state of education today with respect to technology use by teachers?
    5·1 answer
  • The exponential form of 6×6×6×6 is 6 the base is 4 True or False?​
    15·1 answer
  • Discussion Topic
    8·1 answer
  • Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!