<span>B.financially protect against unexpected accidents definitely the answer.</span>
Answer:
The amount to record as the cost of this long-term investment in bonds is $771,500
Explanation:
The computation of long term investment in bonds is shown below:
= (Face value × cost of bond) + brokerage cost
= ($750,000 ×1.01) + $14,000
= $757,500 + $14,000
= $771,500
The accrued interest should not be included in the computation of long term investment because it is not a received cost, it is earned but actually it is not received. Hence, this accrued interest would not be considered in the computation part.
Thus, The amount to record as the cost of this long-term investment in bonds is $771,500
Answer:
1) For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.
- original cost = $9,800
- accumulated depreciation = $1,020
- cash received = $5,980
2) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?
- the loss on sale of equipment ($2,800) should be added to the cash flows from operating activities.
3) What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?
- the cash received ($5,980) should be added to the cash flow from investing activities
Explanation:
equipment cost = beginning equipment - ending equipment = $20,000 - $10,200 = $9,800
equipment's accumulated depreciation = beginning accumulated depreciation + depreciation expense - ending depreciation = $1,950 + $860 - $1,790 = $1,020
book value = $9,800 - $1,020 = $8,780
cash received = book value - loss = $8,780 - $2,800 = $5,980