Solution-How much gain or loss should be recognized

How much gain or loss should be recognized

Reference no: EM131979567

Question - On February 1, 2010, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on January 1, 2011, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement?

A. $0 gain.

C. $72,800 gain.

B. $111,800 gain.

D. $96,000 gain.

Reference no: EM131979567

Questions Cloud

Briefly identify the basic motives economic theorists : Briefly identify the basic motives economic theorists conventionally assume when attempting to explain human behavior. (I.e., describe homo economicus.)

What is the correcting entry : Assume the same information given except you credited rent expense for $12000. What is the correcting entry in 2012 assuming the books in 2011 are closed

What amount should n report as capitalized lease liability : The rounded present value of an ordinary annuity for nine years at 11% is 6. What amount should N report as capitalized lease liability at December

Children available for adoption from china : In the case of children available for adoption from China, is the extent of adverse selection greater among male or female children?

How much gain or loss should be recognized : Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement

What is the yield to maturity of bond with par value : What is the yield to maturity of a bond with a par value of $1,000, a 6% coupon rate with semi-annual payments,

How much is basic earnings per share : The net income was $250,000. How many shares should ABC Corp. use to calculate 2008 basic EPS? How much is basic earnings per share

Compute the basic eps and diluted eps for ramon inc : Ramon Inc. reported net income of $300,000 for the year ended December 31, 2006. Compute the basic EPS and diluted EPS for Ramon Inc. for 2006

Risky portfolio by investing half of her money in stocks : Ashley wants to form a risky portfolio by investing half of her money in stocks and half in bonds.

Reviews

Write a Review

Required(*) Message

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?

Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

Accounting problems

Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.

Theory of interest - term structure of interest rates

Term Structure of Interest Rates

Write a report on internal controls

Write a report on Internal Controls

Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

Liquidity and profitability

Distinguish between liquidity and profitability.

What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

User Account

All Pages

How much gain or loss should be recognized

Reference no: EM131979567

Reference no: EM131979567

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT