1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alik [6]
3 years ago
10

On December 1, Year 1, Childe Company purchased $100,000 of bonds issued by Paperman Company at face value. The bonds mature in

ten years. Childe’s intent was to keep the bonds available to sell when cash needs arise in future years. The fair value of those bonds increased to $102,000 on December 31, Year 1. Which of the following statements are correct with regards to this investment? (Select all that apply.) Check All That Apply The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported at their fair value of $102,000 in the balance sheet. The bonds should be reported at their fair value of $102,000 in the balance sheet. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.
Business
1 answer:
REY [17]3 years ago
5 0

Answer: A- The bonds should be reported among assets in the balance sheet at December 31, Year 1.

B- The bonds should be reported at their fair value of $102,000 in the balance sheet.

D- An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.

Explanation:

You might be interested in
When firms are said to be price takers, it implies that if a firm raises its price: a. buyers will go elsewhere. b. buyers will
MatroZZZ [7]

Answer:

The correct answer is a. buyers will go elsewhere.

Explanation:

This situation occurs when there is competition, that is, other businesses that offer the same or similar products as those of a particular company. In this scenario, the potential buyer will notice the difference according to their previous experiences and will find a way to acquire products from another brand that offer the same satisfaction as the product that rose in price. You must be very cautious with this practice, since it can end up damaging the operation, and in the worst case, leading to bankruptcy.

3 0
3 years ago
An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has
aliya0001 [1]

Answer:

Years to maturity       Price of Bond C            Price of Bond Z

         4                               $1,084.42                       $711.03

         3                               $1,065.93                       $774.31

         2                               $1,045.80                      $843.23

         1                                $1,023.88                       $918.27

Explanation:

Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.

The price of each bond of the bond can be calculated using the following excel function:

Bond price = -PV(rate, NPER, PMT, FV) ........... (1)

Where;

rate = Yield to maturity of each of the bonds

NPER = Years to maturity

PMT = Payment = Coupon rate * Face value

FV = Face value

Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:

Years to maturity       Price of Bond C            Price of Bond Z

         4                               $1,084.42                       $711.03

         3                               $1,065.93                       $774.31

         2                               $1,045.80                      $843.23

         1                                $1,023.88                       $918.27

Download xlsx
4 0
3 years ago
The reason of taxation? ​
elena-14-01-66 [18.8K]

Answer:

The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as police and firefighters. Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks.

6 0
3 years ago
Read 2 more answers
Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly
lubasha [3.4K]

Answer:

By formation of legally binding contract.

Explanation:

Contacts are a good way for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments. Because of the high quality expected in the goods procured, having a legally enforceable contact will make the vendor provide high quality products that meets required specifications.

However when contracts dictate a particular price, so if the market price of input were to go down we will still be obligated to buy at the higher price from the vendor.

4 0
3 years ago
Kimberly Young started her own consulting firm, Young Consulting Inc., on May 1, 2022. The following transactions occurred durin
Softa [21]

Answer:

I used an excel spreadsheet to answer this question.

           

Download pdf
7 0
3 years ago
Other questions:
  • Wu Company incurred $97,200 of fixed cost and $111,600 of variable cost when 3,100 units of product were made and sold. If the c
    11·1 answer
  • Seble wants to open a floral shop in a downtown business district. She doesn't have fundsenough to purchase inventory and pay si
    10·1 answer
  • Nick is going to be graduating in December and has already accepted a position with a major accounting firm. His employer will p
    8·1 answer
  • 10 pts and who ever ansers fisrt is brainleist
    8·2 answers
  • You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year
    10·1 answer
  • On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flo
    9·1 answer
  • g How would you define the role of human resources in your organization? How does it compare with the information in this week's
    14·1 answer
  • Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It alloca
    5·1 answer
  • In a economy, the government owns the means of production.
    10·1 answer
  • in 2021, kiana's house boat was destroyed by a storm in a region that was declared a federal disaster area by the president. she
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!