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4vir4ik [10]
3 years ago
7

On January 2, 2015, Vaughn Corporation issued $1,650,000 of 10% bonds at 96 due December 31, 2024. Interest on the bonds is paya

ble annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method".) The bonds are callable at 102 (i.e., at 102% of face amount), and on January 2, 2017, Vaughn called $1,140,000 face amount of the bonds and redeemed them. Ignoring income taxes.
Required:
Compute the amount of loss, if any, to be recognized by Vaughn as a result of retiring the $1,140,000 of bonds in 2017
Business
1 answer:
saul85 [17]3 years ago
6 0

Answer:

$59,280

Explanation:

This can be calculated as follows:

Bond issue price = $1,650,000 * 0.96 = $1,584,000

Discount on bonds payable = $1,650,000 - $1,584,000 = $66,000

Annual amortization of discount on bonds payable = $66,000 / 10 = 6,600

Bond carrying value on January 2, 2017 = Bond issue price + (Annual discount on bonds payable * Number of years) = $1,584,000 + ($6,600 * 2) =  $1,597,200  

Value of $1,140,000 of bonds = ($1,597,200 / $1,650,000) * $1,140,000 = $1,103,520

Loss on recognized on redemption = ($1,140,000 * 102%) - $1,103,520 = $59,280

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2007 to the year of 2009
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2 years ago
The law of demand states that, other things equal, when the price of a good.
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The law of demand states that when the price of a good increases, the quantity demanded decreases.

<h3>What is the law of demand?</h3>

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. The quantity demanded of a good is inversely related to the price of the good. This explains why the demand curve is downward sloping.

For example, if the price of a shoe increases, the quantity demanded of the good decreases.

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4 0
2 years ago
The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear belo
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Answer:

Net loss of $24,600

Explanation:

Sales              $773,900

Variable Expenses ($402,100)

Contribution Margin $371,800

Avoidable Expenses of B90D

Fixed Manufacturing Expenses        $186,000

Fixed Selling and Admin Expenses  %161,200

Total Avoidable expenses                 $347,200

If the product B90D is discontinued,the contribution margin of $371,800 will be lost by Wengel corporation and costs of $347,200 will be saved.

Therefore there will be net loss of $(371,800-347,200) $24,600 to the company if the product is discontinued.

3 0
3 years ago
Grouper Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item
zhuklara [117]

Answer:

Normal profit was missing, so I looked for it:

Item   Q        Cost        Cost to    Estimated       Cost                Normal*  

No.                p/ unit     replace   selling price   of Completion  profit

                                                                            and Disposal

1320 1,500   $3.87       $3.63         $5.45           $0.42                $1.38

1333 1,200   $3.27       $2.78         $4.24            $0.61                $0.67

1426 1,100    $5.45       $4.48         $6.05          $0.48                 $0.47

1437 1,300    $4.36       $3.75         $3.87          $0.30                 $0.25

1510 1,000    $2.72       $2.42         $3.93          $0.97                  $1.18

1522 1,200   $3.63       $3.27         $4.60          $0.48                 $0.84

1573 3,300   $2.18        $1.94          $3.03          $0.91                 $0.93

1626 1,300   $5.69       $6.29          $7.26         $0.61                  $1.56

we have to first determine the ceiling NRV and floor NRV

Item     Cost to    Estimated       Cost                NRV           NRV

No.       replace   selling price   of Completion   ceiling        floor

                                                    and Disposal

1320   $3.63         $5.45             $0.42                 $5.03        $3.65

1333   $2.78         $4.24              $0.61                 $3.63         $2.96

1426   $4.48         $6.05             $0.48                 $5.57         $5.10

1437    $3.75         $3.87             $0.30                 $3.57         $3.32

1510    $2.42         $3.93             $0.97                 $2.96         $1.78

1522   $3.27         $4.60             $0.48                  $4.12         $3.28

1573    $1.94          $3.03             $0.91                  $2.12          $1.19

1626   $6.29          $7.26             $0.61                 $6.65         $5.09

we have to determine the market value:

Item     Cost to    NRV           NRV           Market value

No.       replace   ceiling        floor           (middle of the 3)

1320   $3.63        $5.03        $3.65             $3.63

1333   $2.78         $3.63         $2.96            $2.96

1426   $4.48         $5.57         $5.10            $5.10

1437    $3.75         $3.57         $3.32           $3.57

1510    $2.42         $2.96         $1.78            $2.42

1522   $3.27         $4.12         $3.28            $3.28

1573    $1.94          $2.12          $1.19            $1.94

1626   $6.29         $6.65         $5.09          $6.29

Item     Market value       Cost              Quantity           Inventory

No.                                    per unit                                  value

1320      <u>$3.63</u>                   $3.87           1,500                 $5,445

1333      <u>$2.96</u>                   $3.27           1,200                 $3,552

1426       <u>$5.10</u>                   $5.45           1,100                 $5,610

1437       <u>$3.57</u>                   $4.36           1,300                 $4,641

1510       <u>$2.42</u>                   $2.72           1,000                 $2,420

1522      <u>$3.28</u>                   $3.63           1,200                 $3,939

1573       <u>$1.94</u>                    $2.18           3,300                 $6,402

1626      $6.29                   <u>$5.69</u>           1,300                 $7,397

total                                                                                   $39,406

               

7 0
3 years ago
terrence’s team is very close and tends to agree on most decisions with little discussion. terrence should be concerned about
ad-work [718]

Terrence should be concerned about groupthink.

  • Groupthink refers to the common opinion or group consensus suppresses people's ability to provide alternative solutions to the problem as a result all the members of the group agree on the same conclusion.
  • The desire to promote group cohesion and deduction of common conclusion to a problem negatively affects the promotion of thinking abilities, good decision making abilities, and problem solving abilities of group mates.
  • When a team mates derive a common conclusion without an elaborate discussion or with a little discussion. It is indicative of problem of groupthink.

Hence, Terrence should be concerned about groupthink as the team agree on most decisions with little discussion.

Learn more about decision:

brainly.com/question/24128805

4 0
3 years ago
Read 2 more answers
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