Compute the carrying value of this investment

Assignment Help Financial Accounting
Reference no: EM132980967

Question - On January 1, 20X1, ABC acquired 5,000 of XYZ's bonds denominated at P1,000, 12% interest rate, 5 years, intending to collect contractual cash flows and sell them. The effective rate in the market at that time is 10%. On December 31, 20X1, the market value of the bonds is P5,200,000. ABC changes its business model in managing this financial asset by collecting contractual cash flows representing principal and interest. On December 31, 20X2, compute the carrying value of this investment?

Reference no: EM132980967

Questions Cloud

Develop training program for employment interviewers : Your hoes asks you to develop a training program for employment interviewers. How will you proceed? What will be the elements of your program, and how will you
Write end of the year adjusting journal entries : How to write end of the year 2018 adjusting journal entries for this exercise: Insurance Policy, the original cost of $2,700, 3 yr term, taken out on Oct 1 2018
Describe the privacy issues related to the inclusion : Describe the privacy and security issues related to the inclusion of patient information on the poster. A nurse educator is preparing a presentation poster.
Executive compensation program : You are an HR specialist for a national beverage distributing company. The company has been losing top executives to rival companies.
Compute the carrying value of this investment : On January 1, 20X1, ABC acquired 5,000 of XYZ's bonds denominated at P1,000, 12% interest rate, Compute the carrying value of this investment
Describe privacy related to the social media posting : Describe the privacy and security issues related to this social media posting. ICU nurses are such divas and you wasn't in the mood for their whining.
Write two lessons can learn from transcultural theories : Write two lessons you can learn from transcultural theories. Write 2 lessons you can learn from Culturally competent care class.
What are the portfolio weights : Question - If a portfolio of the two assets has a beta of 2.57, what are the portfolio weights? Explain the result
Discuss the key leaders and historical events : Discuss the key leaders and historical events that have influenced the advancement of nursing, nursing education, and nursing roles that are now part.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate each venture capital firm implied post-money

Calculate each venture capital firm's implied post-money valuation and pre-money valuation. Given the calculated result, which offer fits better for QBER's need

  Prepare a production budget for january and february

Fuqua Company's sales budget projects unit sales of part 198Z of 10,000 units in January. Prepare a production budget for January and February 2017. Prepare a direct materials budget for January 2017.

  Calculate the equity method balance in corgan investment

Calculate the equity method balance in Corgan's investment in smashing, inc., account as of december 31, 2011. prepare the worksheet adjustment for the december 31, 2011, consolidation of corgan and smashing.

  Compute How item dealt with in the financial statements

Joey, Compute Discuss how the item should be dealt with in the financial statements of Joey for the year ended 30 November 20x4.

  What is the wacc for company b

What is the WACC (weighted average cost of capital) for Company B? The marginal corporate tax rate is 35%. The YTM (yield to maturity) on the debt of Company B

  Lifo inventory method

Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29, 2014, of $46,130,000 under the LIFO inventory method

  What is the return of an investment in treasury stock

Explain if there is a market for treasury stock? Who would buy treasury stock? What is the return of an investment in treasury stock compare to common and preferred stock?

  What are the amounts for share capital and share premium

AB Co issues 5.000 50c shares for $6.000. What are the amounts for share capital and share premium in the statement of financial position

  Record liabilities separately because helps users to assess

Given that most current liabilities will be settled with cash, it is important to identify and record these liabilities separately because helps users to assess

  What sort of investment should go for

You are now 20. What sort of investment should you go for? Perform the same analysis as if it happened when you are 55 and 80.

  Compute taxable income and income taxes payable

Zurich Company reports pretax financial income of $84,090 for 2014. The following items cause taxable income to be different than pretax financial income. Depreciation on the tax return is greater than depreciation on the income statement by $20,010...

  Income flows versus cash flows

At the end of the fifth year, the owners sold equipment for 22,000, instead of the 20,000 salvage value initially estimated - present a table to support

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd