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
Zepler [3.9K]
3 years ago
11

Crawford Inc. has bonds outstanding during a year in which the general (risk-free) rate of interest has risen. Crawford elected

the fair value option for the bonds upon issuance. What will the company report for the bonds in its income statement for the year? Multiple Choice Interest expense and a gain. Interest expense and a loss. A gain and no interest expense. Interest expense and no gain or loss.
Business
1 answer:
kiruha [24]3 years ago
7 0

Answer:

Interest expense and a gain.

Explanation:

US GAAP allows companies to report their financial assets or financial liabilities at their fair market value, this is called the fair value option.

If interest rates increase, and of course the coupon rate is fixed, then they value of bonds will decrease. The same logic applies to bonds sold at a discount.

In this case, the company must report an interest expense in the income statement regardless of what happens to the interest rate, since the company must pay the coupon rate.

Since the price of the bonds decreased, then the company's liabilities (bonds payable) decrease, so the company must report a gain = bond's previous value - bond's current value

You might be interested in
Julia received a notice that her son’s tricycle had been recalled. Which consumer right protected Julia? the right to be informe
suter [353]
The right to service
8 0
3 years ago
Read 2 more answers
8. Which users could be targeted with Dynamic Remarketing to bring them back to a website? (select all that apply) Users who pos
DochEvi [55]

Answer:

- Users who viewed a website search result page

- Users who viewed product detail pages

- Users who abandoned their shopping carts

Explanation:

Remember, the ultimate aim of marketing is achieved only when the seller makes a sale to the user.

However, in all the above scenarios no sale was actually made, and so there's a need for dynamic remarketing in other achieve the sales objective.

6 0
3 years ago
Indicate whether it would appear on the statement of cash flows as a(n)? operating activity, investing activity, or financing ac
nikitadnepr [17]

Indicate whether it would appear on the statement of cash flows as operating activities.

There are three types of cash flow: operating cash flow, investment cash flow, and financial cash flow. Operating cash flow is generated from the company's normal operating activities. This includes cash proceeds from sales, cash outlays on goods sold (COGS), and other operating expenses such as overheads and salaries.

Investing cash flows include amounts spent to purchase securities intended to be held as investments, such as securities. B. Stocks or bonds of other companies or the Treasury. Inflows are generated by interest and dividends paid on these holdings.

Learn more about cash flows at

brainly.com/question/735261

#SPJ4

7 0
2 years ago
The north american free trade agreement continues to spark debate today, particularly concerning?
raketka [301]

The North American free trade agreement continues to spark debate today because of their concerns with the agreements and alliances of three countries namely United States, Mexico and Canada. There have been agreements and beliefs in which had cause concerns and had cause a continuous debate within the three countries.

8 0
4 years ago
Total surplus equals the sum of consumer plus producer surplus. what happens to total surplus in a market when the government im
Margarita [4]
The correct answer should be that <span>the total surplus increases but by less than the amount of the tax. This happens if the tax is not larger than the producer surplus in which case it would negate and the total would not grow at all. This doesn't happen however since imposing such higher taxes is impossible and riots would surely happen.</span>
5 0
3 years ago
Read 2 more answers
Other questions:
  • The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the
    13·1 answer
  • An organization has recently suffered a series of security breaches that have significantly damaged its reputation. Several succ
    6·1 answer
  • Which of these employee's primary duty is to see that the shop is run efficiently and that customers are satisfied with the serv
    13·2 answers
  • South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $
    15·1 answer
  • Amounts debited to the Work in Process Inventory account may best be described as:
    10·1 answer
  • Complex projects such as research and development for new products often employ rolling wave planning to estimate costs. Which o
    10·2 answers
  • Number 53 934 is divisible by which of the following number brain​
    8·1 answer
  • Sales revenue equals $367,810, sales returns &amp; allowances are $10,000, and sales discounts total $14,180. The cost of goods
    5·1 answer
  • What is agriculture refer the attachment!​
    8·1 answer
  • If total liabilities increased by $91000 and stockholders’ equity increased by $25000 during a period of time, then total assets
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!