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kumpel [21]
3 years ago
11

Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2016. Company manag

ement has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2016 was $210 million.
Required:

1. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2016.

2. Prepare the journal entry by Tanner-UNF to record interest on December 31, 2016, at the effective (market) rate.

3. At what amount will Tanner-UNF report its investment in the December 31, 2016, balance sheet? Why?

4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2017, for $190 million. Prepare the journal entry to record the sale.
Business
1 answer:
Arte-miy333 [17]3 years ago
8 0
I don’t know what you’re telling me to do here! Where’s the question ?
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Indicate which of the following statements is true. a. Public transportation may be covered by an employer-provided spending acc
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Answer:

B.Dependent care plans can only be used to cover the costs of caring for a dependent child

Explanation:

Dependent Care  with the high cost of child care these days a  Dependent Care Account makes it easy to save on taxes.  

5 0
3 years ago
At December 31, 2022, the following information (in thousands) was available for Ayayai Inc.: ending inventory $22,000; beginnin
Anuta_ua [19.1K]

Answer:

Inventory turnover in days = 43.59 days

Inventory turnover (No of times)=  8.37 times

Explanation:

<em>Inventory turnover days is the average length of time it takes a business to sell its inventory before replacement.</em>

Inventory turnover in days

= Average inventory /Cost of goods sold × 365 days

<em>Average inventory = (Opening Inventory + closing inventory)/2</em>

<em>Average inventory </em>

= (21,000 + 22,000)/2

= 21,500

<em>Inventory turnover in days</em>

(21,500/180,600) × 365 days

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4 0
3 years ago
Suppose that you buy a two-year 7.4% bond at its face value. a-1. What will be your total nominal return over the two years if i
Harman [31]

Answer: 15.35%

Explanation:

The total nominal return over the two years if inflation is 2.4% in the first year and 4.4% in the second year will be calculated thus:

= (1+Interest rate)² -1

= (1 + 7.4%) - 1

= (1 + 0.074)² - 1

= 1.074² - 1

= 1.153476 - 1

= 0.153476

= 15.35% over the two years

8 0
3 years ago
For each of the goods, identify the characteristics that describe each good. Note that each good will be described with two char
Bad White [126]

Answer: PLEASE  see below for answer

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Also, Non-rivalrous goods are those goods that even though consumed by the people will not cause shortage of the  availability of the same goods to others.   A rivalrous good is the opposite as it causes shortage in availability  to others when used.

National Defence----Non excludable and Non Rivalrous

Pay-Per-View cable television---Excludable and NonRivalrous

a Hot Pocket sandwich--- Excludable and Rivalrous

private classroom education--- Excludable and Rivalrous

pajamas--- Excludable and Rivalrous

a unicycle ---- Excludable and Rivalrous

7 0
3 years ago
A datacenter recently experienced a breach. When access was gained, an RF device was used to access an air-gapped and locked ser
alex41 [277]

Answer:

a. Faraday cage

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Faraday cage -

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It is also known as Faraday shield .

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5 0
3 years ago
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