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
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
You might be interested in
What is meant by the term target market?
Agata [3.3K]

Answer:

<h3>A target market is the set of consumers that a company plans to sell to or reach with marketing activities. A target audience is the group or segment within that target market that is being served advertisements.</h3>

<h2>hope it helps.</h2><h2>stay safe healthy and happy...</h2>
7 0
3 years ago
If the demand for product x is inelastic, a 4 percent decrease in the price of x will.
NeTakaya

A 4 percent decrease in the price will lead to an increase in the quantity demanded by less than 4 percent.

<h3>What is demand?</h3>

Demand simply means the amount of goods and services that a buyer wants to buy at a particular price and time.

When the demand for product x is inelastic, a 4 percent decrease in the price of x will lead to an increase in the quantity demanded by less than 4 percent.

Learn more about demand on:

brainly.com/question/1245771

3 0
2 years ago
During a recent​ month, Company planned to provide cleaning services to customers for per hour. Each job was expected to take ho
givi [52]

Answer: B.  $1,050  more than expected.

Explanation:

The company originally planned to have revenue resulting from 30 customers and charging $30 for an estimated 33 hours.

Estimated revenue was;

= 30 * 30 * 3

= $2,700

However, in actuality, they sold to 20 more customers than estimated but only spent 2.5 hours each.

Number of customers = 30 + 20

= 50 customers

Actual revenue

= 50 * 30 * 2.5

= $3,750

Difference is;

= 3,750 - 2,700

= $1,050 more

7 0
4 years ago
True or false? until recently, congress provided subsidies to tobacco growers and has been very reluctant to pass legislation op
Vera_Pavlovna [14]

That is "True".

For around seventy years, going back to the Great Depression, the legislature forced production constrains on individual tobacco cultivates yet ensured a artificially high cost for the harvest. The strategy kept up order in the tobacco developing business for a considerable length of time and kept numerous little agriculturists alive. At the point when Congress voted a ballot in late 2004 to take out the government's contribution in the business, it was seen as an approach to standardize the cost of tobacco and make U.S. tobacco cultivating more focused over the long haul.

5 0
3 years ago
In all cases of identity theft, you should notify the
ludmilkaskok [199]
President of the United States
3 0
3 years ago
Other questions:
  • The biggest perk or benefit you will receive for donating to a charitable organization is:
    9·1 answer
  • Credit cards all use the same interest and finance charges. <br> a. True <br> b. False
    11·2 answers
  • The decision-making themes covered in Business Analytics: Data Analysis &amp; Decision Making include which of the following?
    9·1 answer
  • B approached L and proposed they form a partnership to exploit a profitable idea of B’s. L declined, citing the risk of unlimite
    11·1 answer
  • "A potential client is 81 years old and has asked his representative for recommendations of speculative "Dot Com" stocks. The cu
    9·1 answer
  • Which of the following is true about the equilibrium federal funds​ rate? A. The equilibrium federal funds rate is constant beca
    8·1 answer
  • Net income $160,000 Preferred dividends $10,000 Shares of common stock outstanding 20,000 Market price per share of common stock
    7·1 answer
  • Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction
    13·1 answer
  • Morgan Stanley's wealth management unit offers to invest profits of $750,000 made by an artist on a world tour at 7% compounded
    8·1 answer
  • If bonds are issued with a stated interest rate higher than the market interest rate, the bonds will be issued at:
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!