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alex41 [277]
2 years ago
9

Jent Corp. purchased bonds at a discount of $10,000. Subsequently, Jent sold these bonds at a premium of $14,000. During the per

iod that Jent held this investment, amortization of the discount amounted to $2,000. What amount should Jent report as gain on the sale of bonds?A. $12,000B. $22,000C. $24,000D. $26,000
Business
1 answer:
MAXImum [283]2 years ago
3 0

Answer: Amount should Jent report as gain on the sale of bonds : <em>$22000</em>

Explanation:

Given:

Bonds purchased at a discount of $10,000

Bonds sold at a premium of $14,000

Amortization of the discount amounted to $2,000.

Therefore, gain on the sale of bonds can be computed as:

Gains = (Cost + Premium) - (Cost - Carrying Cost)

∵ Carrying Cost = Purchasing Cost - Amortization

Carrying Cost = 10000 - 2000

Carrying Cost = $8000

∴ Gains = (10000 + 14000) - (10000 - 8000)

<u><em>Gains = $22000 </em></u>

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Answer:

B) $617,000

Explanation:

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8 0
3 years ago
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6 0
3 years ago
Which of the following is an example of a hidden variable? Quality of life is a hidden variable because it cannot be measured di
My name is Ann [436]

Answer:

<u>Quality of life is a hidden variable because it cannot be measured directly but must be inferred from measurable variables such as wealth, success, and environment. </u>

Explanation:

<u>Hidden variable:</u> The term "hidden variable" is described as the proposition that specific "statistical models" of any physical systems, for example, Quantum mechanics are being incomplete inherently, and along with this the apparent randomness of a particular system is being dependent not on "collapsing functions" but instead it is due to any unmeasurable or unseen or hidden variables.

8 0
3 years ago
A(n) __________ refers to a complete ban on importing or exporting of products from a specific country
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An embargo refers to a complete ban <span>on the importing or exporting of products from a specific country.</span>
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2 years ago
An aging of a company's accounts receivable indicates that $8,000 are estimated to be uncollectible. If Allowance for Doubtful A
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Answer:

c. debit to Bad Debts Expense for $6,900.

Explanation:

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Required Adjustment                    $ 6900 credit

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