Exchanging things of value is what consideration is in a contract.
Answer:
loss at extinguishment 8,122.50 dollars
Explanation:
we should compare the amount we pay for the bonds and the book value of the bonds:
book value 978,877.50*
call price <u> (987,000.00) </u>
loss (8,122.50)
*We are given with the value at January 1st we must adjust for the value at july 1st using effective-rate method
970,500 x 11%/2 = 53,377.5 interest expense
1,000,000 x 9%/2 = 45,000 cash outlay
amortization 8,377.5
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<em><u>carrying value:</u></em>
970,500 + 8,377.5 = 978,877.5
Answer:
The correct answer is letter "A": True.
Explanation:
Nonmonetary assets are objects a firm possesses in which cash value is complicated to determine for accounting purposes. The value of those assets may vary with time in front of different economic scenarios. When these types of assets are sold in markets where there is few to no liquidity and the calculated amount for the object is not transferred, the loss is recognized as it happens.