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Inessa05 [86]
3 years ago
10

Landis Company purchased $2,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with interest payable on July 1 an

d January 1. The bonds sold for $2,083,160 at an effective interest rate of 7%. Using the effective-interest method, Landis Company decreased the Available- for-Sale Debt Securities account for the Ritter, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $7,080 and $7,320, respectively. At December 31, 2018, the fair value of the Ritter, Inc. bonds was $2,120,000. What should Landis Company report as other comprehensive income and as a separate component of stockholders' equity?a. $36,840
b. $14,400

c. $51,240

d. No entry should be made.
Business
1 answer:
yanalaym [24]3 years ago
7 0

Answer:

correct option is c. $51,240

Explanation:

given data

fair value of Ritter  Inc = $2,120,000

Landis Company purchased = $2,000,000

rate = 8 %

time = 5 year

bonds sold =  $2,083,160

rate = 7%

premiums July 1 =  $7,080

premiums December 31 = $7,320

solution

we get here Landis Company  comprehensive income as separate component of stockholders' equity  that is express as

comprehensive income = fair value of Ritter - ( bonds sold - premiums July 1  - premiums December 31 )  ..................1

put here value and we get

comprehensive income = $2,120,000 - ( $2,083,160 - $7,080 - $7,320  )

comprehensive income =  $51240

so correct option is c. $51,240

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The cash account for Norwegian Medical Co. at April 30 indicated a balance of $403,784. The bank statement indicated a balance o
agasfer [191]

Answer:

Explanation:

cash account balance $403,784

note collected by bank $50,630

Error in check ($8,244)

Bank service fees ($170)

reconciled cash account $446,000

bank account balance $468,460

outstanding checks ($73,870)

deposit in transit $51,230

error in charging check $180

reconciled bank account $446,000

Dr Cash 50,630

    Cr Notes receivable 48,220

    Cr Intertest revenue 2,410

Dr Accounts payable 8,244

    Cr Cash 8,244

Dr Bank fees expense 170

    Cr Cash 170

Cash balance = $446,000

5 0
3 years ago
Which fema mitigation program assists in implementing long-term hazard mitigation measures following presidential disaster decla
Elodia [21]

Answer:

correct option is hazard mitigation grant

Explanation:

solution

Hazard Mitigation projects was funded by FEMA Hazard Mitigation Assistance grant programs

and  ( HMGP ) Hazard Mitigation Grant Program was created in 1988

and FEMA administer provide three program

  1. Hazard Mitigation Grant Program
  2. Flood Mitigation Assistance
  3. Program and the Pre Disaster Mitigation

Hazard Mitigation Grant Program assist in implement long term hazard mitigation planning and projects which follow Presidential major disaster declaration

so correct option is hazard mitigation grant

3 0
3 years ago
Solving for rates what annual rate of return is earned on a $2,800 investment when it grows to $6,100 in eleven years?
Flura [38]
To solve use equation:
FVn = 6100 - investment amount after 11 years
PV = 2800 - initial investment amount
n = number of years

Fvn = Pv(1+i)^n
6100 = 2800(1+i)^11
(1+i)^11 = 6100/2800
(1+1)^11 = 2.17857143
i = (2.17857143)^(1/11)-1
i = 0.07335
i = 0.07335 x 100
i = 7.34%

The annual rate of return is 7.34%
4 0
3 years ago
Harbor Wheel Company manufactures two tractor wheels: the Ultimate which sells for $1,600 and the Standard, which sells for $1,3
algol [13]

Answer:

Harbor Wheel Company

Overhead applied to a single Ultimate wheel using traditional costing:

= $228

Overhead applied to a single Standard wheel using traditional costing:

= $190

Total manufacturing cost of the Standard wheel using traditional costing:

= $710,000 ($710 * 10,000)

Activity-based overhead rate for Quality Control:

= $25

Machining overhead applied to the Standard wheel using activity-based costing:

= $1,000,000

Total manufacturing overhead applied to each Ultimate wheel using activity-based costing:

= $161.40

Explanation:

a) Data and Calculations:

Total estimated overhead = $7,600,000

Estimated total direct labor hours = 200,000

Predetermined overhead rate = $38 per direct labor hour ($7,600,000/200,000)

Current Traditional Costing:

                                              Ultimate    Standard

Selling price per unit             $1,600         $1,300

Direct materials per wheel      $700           $420

Direct labor cost per wheel     $120            $100

Overhead applied per wheel $228            $190

Total cost per wheel            $1,048             $710

Direct labor hours per wheel    6                  5

Total units produced       25,000         10,000

Overhead to a single wheel $228 (6* $38)         $190 (5 * $38)

Activity-Based Costing:

Activity Cost            Cost               Estimated  Expected Use of Cost Drivers

Pools                     Drivers              Overhead           Total Ultimate Standard

                                                                           

Purchasing         purchase orders  $1,200,000    40,000    17,000   23,000

Machine setups machine setups       900,000     18,000     5,000    13,000

Machining          machine hours      4,800,000   120,000   75,000   45,000

Quality Control  inspections               700,000    28,000     11,000    17,000

Total                                               $7,600,000

Activity-based overhead rates

Purchasing = $30 ($1,200,000/40,000)

Machine setups = $50 ($900,000/18,000)

Machining = $40 ($4,800,000/120,000)

Quality control = $25 ($700,000/28,000)

Machining overhead applied to the Standard wheel using activity-based costing = $1,000,000 ($40 * 45,000)

Total manufacturing overhead applied to each Ultimate wheel using activity-based costing:

Purchasing = $510,000 ($30 * 17,000)

Machine setups = $250,000 ($50 * 5,000)

Machining = $3,000,000 ($40 * 75,000)

Quality control = $275,000 ($25 * 11,000)

Total overhead = $4,035,000

Total units = 25,000

Overhead cost per wheel = $161.40 ($4,035,000/25,000)

7 0
3 years ago
(a) If the demand equation is pq=k for a positive constant k, compute the elasticity of demand.
nirvana33 [79]

Answer:

a.Elasticity of demand is p = k/q (an inverse relationship between the price and quantity)

b.My answer in part (a) means that an increase in the price of the item will lead to a decrease in its demand, hence the following applies

1.All prices are critical points of the revenue function.

2.Revenue is increased by lowering the price

8 0
3 years ago
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