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
ivanzaharov [21]
3 years ago
6

On January 1, 20X6, Nichols Corporation issued 10-year bonds at par to unrelated parties. The bonds have a 10% stated rate, face

value of $300,000, and pay interest every June 30 and December 31. On December 31, 20X9, Harn Corporation purchased all of Nichols' bonds in the open market at a $6,000 discount. Harn is Nichols' 80 percent owned subsidiary. Harn uses the effective interest method of amortization. The consolidated income statement for the year 20X9 should report with respect to the bonds:
I. interest expense of $30,000.
II. a gain of $6,000
a. I and II
b. II but not I
c. Either I or II
d. Neither I nor II
Business
1 answer:
BartSMP [9]3 years ago
4 0

Answer:

a. I and II

Explanation:

As there is an interest expense of $30,000 i.e come from

= $300,000 ×10%

= $30,000

This would be reflected on the consolidated income statement for the year 20X6. And the extraordinary gain which generally disclosed to the financial statement notes

Therefore in the given situation it is being considered as only a gain, not as an extraordinary gain

Hence, both the amounts i.e interest expense and the gain will be reported in consolidated income statement for the year 20X6  

You might be interested in
A car dealership spends $140,000 on cars to stock their lot. After a day of sales, they earn a total revenue of $300,000. What i
r-ruslan [8.4K]

Answer:

$160,000

Explanation:

Calculation of the car dealership's profit

Using this formula

Profit= Total revenue- Amount Spend

Where,

Total revenue=$300,000

Amount Spend=$140,000

Let plug in the formula

Profit =300,000-140,000

Profit =160,000

Therefore the car dealership's profit will be $160,000

5 0
3 years ago
What is the term for a more complex production strategy that combines approaches from more than one basic strategy?
VARVARA [1.3K]
On Harvard Business News it explained this connection on strategic management, it links all the strategies and complexities in the business. Because of the diversity and continuous change in business schemes and application, there is a need to merge everything and all the phases that occurred in the business. The aim of strategic management is to simplify everything and make it individualized and cater the clients on the services or products it has.
7 0
3 years ago
If​ eHermes' supplier of​ self-driving vehicle chassis is able to reduce costs by having better data on both finished goods inve
Allushta [10]

Answer:

Linkages

Explanation:

Running a business is a difficult and competitive job to do and it requires tremendous internal and external effort to make it successful. Using linkages across the various processes of business helps to complete the job in time and sometimes it is also cost-efficient. Ehermes' is using linkages to improve the business process to effectively produce goods and services.

5 0
3 years ago
Write a paragraph explaining the difference between renewable and nonrenewable natural resources
KATRIN_1 [288]

Answer:

A renewable resource is something that can be reused or replenished naturally over time.  The five major renewable energy resources are solar, wind, water (hydro), biomass, and geothermal. Renewable often can be looked at similar to recycling because you can reuse. Where as Nonrenewable energy resources include things like coal, nuclear, oil, and natural gas; which are limited supply. When those run out they are out they can't be reused or replenished.

Explanation:

Common knowledge

5 0
3 years ago
Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of ea
Westkost [7]

Answer:

See answers below

Explanation:

1 The predetermined overhead rate

= Cost of manufacturing overhead / Cost driver.

Where cost driver

= labor cost / labor rate

= $240,192 / $12.51

= 19,200 hours

Expected overhead

= depreciation + supervisor + supplies + property tax

= 56,500 + 140,000 + 46,400 + 27,750

Total overhead = 270,650

Overhead rate = 270,650 / 19,200

= 14.10 per hour

2. The amount t of applied overhead for of 18,500 actual hours were worked on

= 18,500 hours × $14.10

= $260,850

7 0
3 years ago
Other questions:
  • ​DeShawn's Detailing is a service that details cars at the​ customers' homes or places of work.​ DeShawn's cost for a basic deta
    8·1 answer
  • Cabell Products is a division of a major corporation. Last year the division had total sales of $13,420,000, net operating incom
    12·1 answer
  • Could somebody help me?
    11·1 answer
  • Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials a
    11·1 answer
  • John bought 1,000 shares of intel stock on october 18, 2014, for $30 per share plus a $750 commission he paid to his broker. on
    10·1 answer
  • Estelle has 30 years of experience in your field and has answered your questions giving you advice and help you make contacts sh
    5·1 answer
  • Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budg
    7·1 answer
  • During the current calendar year, Bowman Corporation purchased $660,000 of inventory. The beginning inventory balance was $84,00
    5·1 answer
  • 2019 balance sheet showed net fixed assets of $5.2 million, and the 2020 balance sheet showed net fixed assets of $5.8 million.
    7·1 answer
  • On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!