Answer: Vent should record $70,000
Explanation:
The requirement is to determine the amount of discount on the debentures that Vent should record at issuance.
ASC Topic 470 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the bonds and the warrants based upon their relative fair values at the time of issuance.
In this case, the fair value of the bonds is not known, but the fair value of the warrants is $10 per warrant. Thus, the total fair value of the warrants is $20,000 ($10 × 2,000 warrants). The fair value of the debentures can be estimated to be $430,000 ($450,000 total proceeds – $20,000 fair value of warrants). The face value of the bonds $500,000 less the fair value of the bonds of $430,000 equals the bond discount of $70,000.
Answer:
C. $13,700
Explanation:
Given that;
Beginning retained earnings = $4,000
Net income during the period = $10,000
Dividends = $300
Computation of Ending balance in the retained earnings account
= Beginning retained earnings + Net income during the period - Dividends
= $4,000 + $10,000 - $300
= $13,700
Therefore, the ending balance in the retained earnings account is $13,700
Answer:
-$5,873
Explanation:
For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-
Net exposure = Received amount - Paid amount
= €200,000 - €50,000
= €150,000
Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)
= 2% - (1.96 × 2.5%)
= -2.9%
Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage
= €150,000 × $1.35 × (-0.029)
= -$5,873
Answer:
Option D is the correct option. Please choose option D that is $150,000.
Explanation:
Amount of paid-in capital from treasury stock transactions = Shares exchanged * (Market Price - Share purchase Cost)
Where Shares exchanged = 25000
Market price = $45
Cost of share = $39
Therefore, the amount of paid-in capital from treasury stock transactions = 25000 shares * (45 - 39) = $150,000
Option D $150,000 is correct
