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Sati [7]
3 years ago
12

On February 1, 2017, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar

y 1, 2018, at 102 for total proceeds of $1,020,000. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement
Business
1 answer:
Vlad [161]3 years ago
7 0

Answer:

$72,800

Explanation:

Book value:

= Value of bonds + Unamortized bond premium

= $1,000,000 + $92,800

= $1,092,800

Paid at redemption:

= 102% of value of bonds

= 102% × $1,000,000

= $1,020,000

Gain on bond retirement:

= Book value -  Paid at redemption

= $1,092,800 - $1,020,000

= $72,800

Therefore, gain should be recognized on this bond retirement will be $72,800.

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A company may focus on lost contribution margin or prepare comparative income statement when making a product line decision

<h3>What is income statement?</h3>

An income statement can be regarded as financial statement which helps to display company's income and expenditures.

It is a financial statement that shows you the company's income and expenditures. It also shows whether a company is making profit or loss.

Hence, when making a product line decision, a company may focus on lost contribution margin and avoidable fixed costs or prepare comparative income statement.

Learn more about income statement here : brainly.com/question/21851842

7 0
2 years ago
Spartan Corporation, a U.S. corporation, reported $2 million of pretax income from its business operations in Spartania, which w
pashok25 [27]

Answer:

A. = (15% X $2M) + (21% X $2M) = $720,000. Since there is no mechanism for mitigating double taxation, the branch profit will be taxed on the to tax rate of 15% and 21% which is $300,000 and $420,000.

B. The total tax for $2m branch profit if US corporations can remove foreign based profit from US taxation will be just the 15% x $2m = $300,000.

C.If they are allowed to take deductions for foreign income taxes, the total tax on the $2m branch profit will be (21% -15%) x $2m = $120,000.

Explanation:

D.1. If credit are allowed for foreign income tax paid, total tax will be ($2m - $300,000 been foreign tax paid) x 21% = $357,000

D.2.

If the charge foreign income taxes at 30% and US corporations can claim refundable credit for foreign income tax paid on foreign source income = ($2m - $300,000 been the foreign income tax paid) = $1 700,000 x 30% = $510,000

8 0
3 years ago
Heathcote Corporation is a manufacturer that uses job -order costing. The company closes out any over-applied or under-applied o
valentinak56 [21]

Answer:

I'm figuring this out for you!

5 0
3 years ago
10. Suppose the world price of coffee is $3 per pound and Brazil’s domestic price of coffee without trade is $2 per pound. If Br
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Answer:

no

Explanation:

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6 0
2 years ago
Communication barriers are the different factors that disrupt messages. There are a variety of different strategies that can be
vladimir1956 [14]

Answer:

Explanation below

Explanation:

Language Barriers - both language and linguistic abilities can serve as barriers to communications between people. When people communicate using the same language, terminologies used in the message can form as barrier in the communication. It is best to use the language that can be rightly understood by the receiver.  

Psychological Barriers – The psychological mind of the person receiving the message could serve as a barrier to communication. When people experience certain stress and personal issues, it could preoccupy their minds and that may make them not to be receptive to messages as expected. Stress management could help alleviate the challenges around this psychological barrier issues.  

Physiological Barriers simply have to do with the receiver’s physical state. If the person is not hearing well maybe due to background noise, then the entire messages may not be grasped by the receiver. It is best to ensure there are no background noises.

Physical Barriers include the geographical distances between both the sender and the receiver of the message. Modern technologies have been used to reduce the impact of physical barriers.  

Attitudinal Barriers are the behaviors or perceptions that hinder people from communicating effectively. Such barriers can come up as a result of personality conflicts between the people or resistance to change. It would be ideal if both parties that are communicating try to overcome their attitudinal barriers before they can communicate. Better enlightenment can be used here effectively to correct issues.

7 0
2 years ago
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