Answer:
False is the correct answer.
Explanation:
Answer:
c. $7,418
Explanation:
Calculation to determine What was Fei’s Interest Expense on the bond during fiscal year 2012
Using this formula
Interest Expense =Interest payable+Amortization of bonds discount interest expense
Let plug in the morning
Interest Expense=(5%*100,000)+$2,418
Interest Expense=$5,000+$2,418
Interest Expense=$7,418
Therefore Fei’s Interest Expense on the bond during fiscal year 2012 is $7,418
i think profession
Explanation:
so it can be right also wrong also
Answer:
d. Claims exchange transaction
Explanation:
Claims exchange transaction -
It refers to any discrepancy in the claims , is referred to as claims exchange transaction .
In this case the claim of one reduces and others increases and hence the total claim remains constant .
Hence , from the given scenario of the question ,
The correct option is d. Claims exchange transaction .
Answer:
Gain recognized by Tom is $10000
So option (b) will be correct answer
Explanation :
We have given liability on bulding assumed by Paul Corp = $30,000
Tom's adjusted basis in the building = $20,000
Since the liability assumed by Paul Corp on the building is greater than Tom's adjusted basis, Tom must recognize gain equal to the difference between the liability on the building and his adjusted basis.
So gain recognized by Tom = $30,000 - $20,000 = $10,000
