How much income will Hathaway recognize

Assignment Help Financial Accounting
Reference no: EM132855273

Question - On July 1, 20X1, Hathaway Inc. purchased a $100,000, five-year, 6% bond when the market rate of interest was 7%. Interest was payable semi-annually on June 30 and December 31. The price paid for the bond was $95,842. Hathaway has a December 31 year end and reports its financial results in accordance with IFRS. Hathaway irrevocably elects to classify this investment at FVPL to significantly reduce a measurement inconsistency. On December 31, 20X1, the bond was actively trading for $96,900.

How much income will Hathaway recognize on its financial statement for the year ended December 31, 20X1, relating to this investment?

a) $1,058

b) $3,355

c) $4,058

d) $4,413

Reference no: EM132855273

Questions Cloud

Implement the network on Packet Tracer : Implement the network on Packet Tracer (or similar) network simulation software and perform important steps to manage the network security configuration
What is the probability that a student grades will improve : a) Are internships and improved grades independent events? Prove. b) What is the probability that a student's grades will improve?
What proportion of times would a number appear : A computer's random number generator is set to produce any real number between 30 and 90; What proportion of times would a number appear between 38 and 45
Create a name and establish a location for the business : Create a name and establish a location for the business. Construct a mission statement for the business. Decide on the type of cookie you want to make and sell.
How much income will Hathaway recognize : How much income will Hathaway recognize on its financial statement for the year ended December 31, 20X1, relating to this investment
Find the probability that a randomly selected wow player : Find the probability that a randomly selected WoW player plays Horde (i.e. not Alliance).
How many shares each one will have : You invested $100,000 and 4 of your friends invested $50,000 each. How many shares each one will have
Identify two ways that noah and kelly can use website : Identify at least two ways that Noah and Kelly can use their website to increase their credibility as part of their persuasive strategy.
What is the total return to an investor in USA : At the same time the exchange rate moved from $/£ 1.70 to 1.58. What is the total return to an investor in USA who invested in this security

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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