High GDP and high price levels best describes what phase of the business cycle?

On January 1, 2017, Swen paid $184,000 for $200,000 of the 8%, 20-year bonds of Penn Corporation, issued on January 1, 2013, at

zimovet [89]

The determination of the gain and the character of the gain if the Penn Corporation bonds are sold by Swen on January 1, 2019, for the proceeds of each sale is as follows:

(a) (b) (c)

Sales proceeds $191,000 $185,750 $183,000

Carrying value $185,600 $185,600 $185,600

Capital gain (loss) $5,400 $150 ($2,600)

<h3>What is the carrying value of bonds?</h3>

The carrying value of a bond is the net amount between the bond's face value plus (minus) any unamortized premiums or discounts.

The carrying value is the book value of the bond.

When a bond receivable is sold, capital gain or loss is realized from the sale, which gives rise to capital gain tax.

<h3>Data and Calculations:</h3>

Bond's price = $184,000

Face value of bonds receivable = $200,000

Premium received = $16,000 ($200,000 - $184,000)

Interest rate = 8%

Maturity period = 20 years

Payment date = January 1, 2017

Straight-line amortization of premium = $800 ($16,000/20)

Carrying value after two years, January 1, 2019, = $185,600 ($184,000 + $1,600)

(a) (b) (c)

Sales proceeds $191,000 $185,750 $183,000

Carrying value $185,600 $185,600 $185,600

Capital gain (loss) $5,400 $150 ($2,600)

Carrying value:

Face value $200,000

Unamortized premium $14,400 ($16,000 - $1,600)

Carrying value $185,600

Learn more about capital gain from bond sales at brainly.com/question/19422959

8 0

2 years ago

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct

nadezda [96]

Answer:

The correct answer is option (c) $264 underapplied

Explanation:

Given data;

Direct labour hour = 22160

Total Manufacturing overhead cost= $585,024

Actual direct labor hour = 22150

Actual Manufacturing overhead cost = $585024

Calculating the Predetermine overhead rate using the formula;

Predetermined Overhead rate=Total Overhead Cost/Total Direct Labor Hour

Predetermined Overhead rate = $585024/22160

=$26.4 per labor hour

To determine the under-applied amount of overhead cost, we use the formula;

Under−Applied amount= Estimated Overhead Cost*Actual Overhead Cost

Substituting into the formula, we have

(22150*26.4)-585024

Under applied = $ 264

8 0

2 years ago

The balance between supply and demand is called

OLEGan [10]

Answer: O EQUILIBRIUM

HOPE THIS HELPS

CAN YOU PLEASE HELP ME TOO

6 0

3 years ago

Angus works as a dairy farmer in Minnesota. He loves his work and finds a great deal of personal satisfaction in providing the h

weeeeeb [17]

Answer:

Explicit costs are the costs which requires the money to pay.

On the other hand, implicit costs refers to the benefit that is foregone by choosing some other work or doing some other activity.

Therefore,

Explicit costs are as follows:

1. Wages pays to his hired hand

2. Buys feed for his cows.

3. Gas expense that is used in truck

Implicit costs are as follows:

1. Foregone income of $27,000 from working at a dairy plant as a technician.

2. Time taken for extracting milk from all the cows.

5 0

3 years ago

Colorado Mountain Mining paid $ 896,900 for the right to extract mineral assets from a 500,000-ton deposit. In addition to the

Zepler [3.9K]

Answer:

(a) The asset would be recorded in accordance to IAS 16 Property, plant & equipment.

Dr Mining Asset 896,900

Cr Bank 896,900

(b) IAS 16 says that the costs incurred to make the asset ready for use must be capitalized as part of the asset. This means the license fee $1000 filing fee, License fee $2100 and $50,000 amount paid for geological survey must be capitalized. So the entry is as under:

Dr Mining asset (1k+2.1k+50k) $53,100

Cr Bank $53,100

(c) This assets must be depreciated on the basis of tons of minerals extracted which is 60 thousands tons in the first year.

Depreciation Expense = (60k tons / 500k tons) * (Total capitalized cost)

=(60,000/500,000) * (896,900+53,100) = $108,000

The Double entry of Depreciation Expense would be as under:

Dr Depreciation Expense $108,000

Cr Accumulating Depreciation $108,000

3 0

3 years ago