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jolli1 [7]
3 years ago
6

Fallen Company commonly issues long-term notes payble to its various lenders. Fallen has had a pretty good credit rating such th

at its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay's Bank and has the following data related to the carrying and fair value for these notes. Carrying Value Fair ValueDecember 31,2014 54,000 54,000December 31,2015 44,000 42,500December 31,2016 36,000 38,000a. Prepare the journal entry at December 31 (Fallen's year end) for 2014, 2015, and 2016 to record the fair value option for these notes.b. At what amount will the note be reported on Fallen's 2015 balance sheet?c. What is the effect of recording the fair value option on these notes on Fallen's 2016 income?d. Assuming that general market interest rates have been stable ove the period, does the fair value data for the notes indicate that Fallen's credit-worthiness has improved or declined in 2016? Explain.
Business
1 answer:
dexar [7]3 years ago
5 0

Answer:

b) $42,500

c) Fallen's 2016 net income will get reduced by $3,500  

Explanation:

The a, b, c, d is explained very well in the file attached i hope it works. Thank you.

Download docx
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Venezuela Company’s net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issu
Ira Lisetskai [31]

Answer:

$4.67 per share

Explanation:

The computation of the diluted earning per share is shown below:

= (Total income - preference dividends) ÷ ( outstanding shares + diluted shares)

where,

Total income is $50,000

Outstanding shares is 10,000

And, the diluted shares is

Amount paid towards shares = Options issued × Exercise price per share

= 1,000 × 6

= $6,000

And,

Value of options = Amount paid towards shares ÷ Current market price

= $6,000 ÷ $20

= 300

So,

Diluted shares is

= Options issued - value of options

= 1,000 - 300

= 700

So Diluted Earnings per share is

= ($50,000) ÷ (10,000 + 700)

= $4.67 per share

We simply applied the above formula

3 0
3 years ago
Modern Railways Co. operates a cargo railroad service between New York and Boston. A train owned by Modern Railways derails due
Verizon [17]

Answer: Special damages

Explanation: In simple words, special damages refers to the claim made by the injured person for the losses he or she suffered due to negligence of duty by the defendant.

In the given case, the train that is owned by the modern railways collided with a truck owned by craft co resulting in a loss of $100,000 of the former.

Hence if Craft co proves that the accident happened due to the negligence from the side of modern railways then they can claim special damages.

4 0
3 years ago
What is the purpose of the customs department of a country’s government?
soldi70 [24.7K]

Answer:

Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

8 0
3 years ago
A client presents with chief complaints of unexplained weight gain and back pain from a compression fracture of the vertebrae. O
kozerog [31]

Answer:

The correct answer is Cushing's Syndrome.

Explanation:

Cushing's syndrome, also known as hypercortisolism, is a disease caused by the increase in the hormone cortisol. This excess cortisol can be caused by various causes. The most common, which affects 60 or 70% of patients, is an adenoma in the pituitary gland; This form of the syndrome is specifically known as Cushing's disease. Other causes of Cushing's syndrome are tumors or abnormalities in the adrenal glands, chronic glucocorticoid use or excessive ACTH production caused by a pituitary adenoma. ACTH is the hormone, produced by the pituitary gland, that stimulates the adrenal glands to produce cortisol. This disorder was described by the American neurosurgeon doctor Harvey Cushing, who reported it in 1932.

5 0
3 years ago
Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs
Allisa [31]

Answer:

4,084

Explanation:

Calculation to determine the economic order quantity (EOQ) for Haulsee

Using this formula

Economic Order Quantity (EOQ) =((2* Annual Requirement * Cost per order)/Carrying cost per unit)^ (1/2)

Let plug in the formula

Economic Order Quantity (EOQ) = ((2*800,000*540)/(370*14%))^(1/2)

Economic Order Quantity (EOQ) = 4,084 units

Therefore the economic order quantity (EOQ) for Haulsee is 4,084 units

4 0
2 years ago
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