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Rainbow [258]
3 years ago
15

Tanner-UNF Corporation acquired as a long-term investment $240million of 6% bonds, dated July 1, on July 1, 2018. The marketinte

rest rate (yield) was 8% for bonds of similar risk and maturity.Tanner-UNF paid $200 million for the bonds. The company willreceive interest semiannually on June 30 and December 31. Companymanagement is holding the bonds in its trading portfolio. As a result ofchanging market conditions, the fair value of the bonds at December31, 2018 was $210 million.Part 1: Prepare the journal entry to record Tanner-UNFâs investment inthe bonds on July 1, 2018.Investment in Bonds 240.0Discount on Bond Investment 40.0Cash 200.0
Business
1 answer:
horrorfan [7]3 years ago
8 0

Answer:

Journal Entry

01 July Debit Investment $240 million Credit Bank $200 million Credit Discount on investment $40 million

31 Dec Debit Bank $7,2 Million Debit Discount on Bond $0.8 million Credit Interest Income $8 million

Debit Fair Value loss on investment $30 million Credit Investment $30 million

Explanation:

Interest is received semiannually

6%/2 = 3%

interest = $240 million * 3% =7,200,000

8%/2 = 4%

Interest market $200 million * 4% =8,000,000

Fair value loss = 240 million - 210 million

                        = 30 million loss because cost is greater than fair value

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The average total cost of producing electronic calculators in a factory is $20 at the current output level of 100 units per week
olga_2 [115]

Answer:

C. total cost is $3000

Explanation:

Fixed cost is $1000 no matter what per week.

Your output is 100 units, average cost to produce each is $20.

so 100 * $20 = $2,000

total cost is $3000

hope this helps

4 0
3 years ago
How can an injection benefit the South African economy​
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If you were the leader of a country facing a rebellion, how would you deal with it?
Ilia_Sergeevich [38]
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6 0
3 years ago
Read 2 more answers
Armando Company owns 17,000 of the 70,000 shares of common stock outstanding of Tito Company and exercises a significant influen
mario62 [17]

Answer:

The correct answer is C

Explanation:

Equity method is the method which involve the process for treating the investment in the associate companies. The proportional share of investor, in the associate company's net income income increases the investment whereas net loss decreases the investment and the proportional payments of dividends decrease it.

So, in this case, the Armando company owning the 17,000 of the 70,000 shares of Tito company, therefore, the investment should be accounted by the equity method.

5 0
3 years ago
the two industries most commonly receiving protection are? a. agriculture and steel. b. pharmaceuticals and steel. c. agricultur
svet-max [94.6K]

Agriculture and clothing  are the two industries  receiving protection.

Protectionism in agricultural trade takes numerous shapes from charges and red tape at the border to so-called non-tariff measures such as agricultural and nourishment security guidelines that surpass those suggested by international public health bodies. The World Trade Organization (WTO) does not set benchmarks but emphatically energizes part nations to utilize universally acknowledged science-based benchmarks at whatever point available along with that The textile and apparel sectors are the foremost ensured segments within the world. not at all like the assurance managed other manufactured items, the materials and apparel segments within the created nations show up to be the beneficiaries of changeless security. Beneath the MFA, trades from creating nations are restricted by sending out shares coming about from bilateral courses of action arranged with bringing in created nations. MFA was at first aiming to supply an efficient but controlled liberalization of universal exchange in materials and attire.

To know more  about agriculture industries refer to the  link brainly.com/question/1863824?referrer=searchResults.

#SPJ4

5 0
1 year ago
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