Reference no: EM131289275
Auerbach Inc. issued 5% bonds on October 1, 2016. The bonds have a maturity date of September 30, 2026 and a face value of $475 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2017. The effective interest rate established by the market was 7%. How much cash interest does Auerbach pay on March 31, 2017? (Answer should be in million rounded to two decimal places.)
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Income taxation
: Income Taxation: Sean owns stock in the McGee Corporation. Sean has a basis in the stock of $100. Which of the following would not be included in Sean's income?
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About the straight-line amortization
: Nickel Inc. bought $400,000 of 3-year, 7% bonds as an investment on December 31, 2015 for $428,000. Nickel uses straight-line amortization. On May 1, 2016, $80,000 of the bonds were redeemed at 111. As a result of the retirement, Nickel will report.
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Bonds and amortizing premium by straight-line method
: Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2014, Daan Corporation issued $4,700,000 of 8-year, 7% bonds at a market (effective) interest rate of 4%, receiving cash of $5,657,227. Journalize the entry to record..
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Assume annual interest payments and amortization
: On January 1, 2016, an investor paid $298,000 for bonds with a face amount of $318,000. The contract rate of interest is 8% while the current market rate of interest is 11%. Using the effective interest method, how much interest income is recognized ..
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Effective interest rate established by the market
: Auerbach Inc. issued 5% bonds on October 1, 2016. The bonds have a maturity date of September 30, 2026 and a face value of $475 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2017. The effective interest rate esta..
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Issuing bonds-amortizing discount by straight-line method
: On the first day of its fiscal year, Robbins Company issued $1,700,000 of 8-year, 6% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. Journalize the entries to record the following:..
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Which of these are absorption
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What should the calculation of the current ratio
: Jasper Inc. has a December 31 year-end. The covenants for Jasper Inc.’s long-term debt A require, among other things, a current ratio (current assets/current liabilities) of at least 1.2. Based on the following financial information, what should the ..
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The straight-line method is used for depreciation
: Windsor Company purchased a depreciable asset for $300,000 on April 1, 2015. The estimated salvage value is $30,000, and the estimated total useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated..
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