User Account

All Pages

How much interest will he report the year

Assignment Help Accounting Basics
Reference no: EM132607934

At the beginning of his current tax year, David invests $12,430 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 20 years. David receives $800 in interest ($400 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 6 percent. (Round your intermediate calculations to the nearest whole dollar amount.)

Question a. How much interest income will he report this year if he elects to amortize the bond premium?

Question b. How much interest will he report this year if he does not elect to amortize the bond premium?

Reference no: EM132607934

Questions Cloud

What is sue gain on the sale : Sue has 5,100 shares of Sony stock that have an adjusted basis of $29,070. What is Sue's gain or loss on the sale of 5,100 shares of Sony stock?
Simulated disaster and comprehensive recovery test : A simulated disaster and comprehensive recovery test may involve many of an organization's key personnel for several days:
Which figure should be included on income statement : If Julie's records show $380,000 in revenue, $64,000 in liabilities, $540,000 in assets, which figure should be included on income statement?
What are the research questions or hypotheses : What are the research questions or hypotheses? Does answering the research question or conclusions on the hypotheses resolve the research problem?
How much interest will he report the year : At the beginning of his current tax year, How much interest will he report this year if he does not elect to amortize the bond premium?
Find total manufacturing costs incurred during fiscal year : The Cost of Goods Manufactured was $690,000. Use this information to find the total manufacturing costs incurred during the fiscal year 2018
Calculate the equivalent value of the payment : Liz was supposed to make a payment of $2,750 in 2 years. Calculate the equivalent value of the $2,750 payment and the $1,900 payment today
How much gain or loss will the firm recognize upon the sale : Deprecation for two years and then decides to sell the asset for $11,000. How much gain or loss (if any) will the firm recognize upon the sale of asset?
How is the dividend allocated : The corporation declares a dividend of $120,000. How is the dividend allocated between preferred and common stockholders

Reviews

Write a Review

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

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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