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m_a_m_a [10]
3 years ago
8

On 1/1/X1, Dolan Corp. pays $100,000 to retire its bonds early. At the time of the retirement, the bonds have a face value of $1

04,000 and a carrying value of $98,000. Question:______
What should be the amount of gain or loss, if any, the company will record as a result of the early retirement?
Business
1 answer:
galben [10]3 years ago
6 0

Answer:

2,000 loss on redemption

Explanation:

the company will recognzie considering the current value of the bonds, thus the carrying value:

as the face value is lower than carrying value there is a discoutn for the difference: 104,000 - 98,000 = 6,000

When we compare the cash outlay with the carrying value we sovle for the redemption result:

98,000 bonds are paid at 100,000 therefore 2,000 loss

bonds payable         104,000 debit

loss on redemption     2,000 debit

         discount on BP              6,000 credit

          cash                           100,000 credit

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At the beginning of the year, your neighbor bought 250 shares of Nu-Tek Corporation and paid $104.32 per share. The share price
Vesna [10]

Answer:

Return on investment= 87.87 %

Explanation:

Dollar return on investment is the sum  of the capital gains and the dividend received all expressed as a percentage of the cost of the investment.

Total  cost = 250×104.32=26,080

Total capital  gain = (193.65- 104.32)× 250 = 22,332.5

Dividend = $2.34 per share×250 = 585

Dollar return on Investment = (585 +22,332.5) /26080 × 100

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kirill115 [55]

Answer:

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Explanation:

In this question, we use the formula of the variable overhead rate variance which is shown below:

= Actual level of activity × (Standard rate - Actual rate  )

= 9,100 × ($7.60 - $7.32)

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= Actual total variable manufacturing overhead ÷ Actual level of activity

= $66,600 ÷ 9,100

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3 years ago
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Answer:

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Explanation:

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