Reference no: EM133001464
BTS Inc.'s portfolio of debt securities on December 31, 2020 and 2021 are shown below:
Face Value, Term, Classification
12% TWICE Corp. P1,000,000 10 years DI@FVTOCI
10% BP Corp. 2,000,000 12 years DI@AC
12% GOT7 Corp. 3,000,000 15 years DI@FVTPL
All of the bonds were acquired on January 2, 2020 when the effective rate was 10%. Prevailing market rate of interest at the end of 2020 and 2021 were 12% and 8% respectively.
Problem 1: How much is the total amount unrealized gain or loss recognized in OCI in 2020?
Problem 2: How much is the total Interest income in 2020?
Problem 3: If the GOT7 bonds were sold at 100 on January 2, 2022, how much is the realized gain (loss)?
|
Calculate the material price variance
: Calculate the material price variance and the material quantity variance related to the M640 electrical relay
|
|
Dividend discount model
: A stock's current annual dividend is $1 per share and its current expected return is 10%. It is currently traded at $40 per share. Assume future expected return
|
|
Discuss the benefits of investment in properties
: Discuss the benefits of investment in properties. Discuss the differences between investment in equity and investment in debt securities
|
|
Should the company purchase the new machine
: The Triple-A Manufacturing Co. is considering the purchase of a machine. The machine will cost a total of $50,000 and has an expected useful life of 6 years. Th
|
|
How much is the realized gain
: If the GOT7 bonds were sold at 100 on January 2, 2022, how much is the realized gain (loss)? All of the bonds were acquired on January 2, 2020.
|
|
What is the purpose of this step
: Explain what happens when an accountant does the third step in the closing process. What is the purpose of this step? What information is needed
|
|
What is the balance of direct origination cost on december
: On January 1, 2020, Lunox Bank granted a 12%, P5,000,000 loan to Nana Company. What is the balance of direct origination cost on December
|
|
Undertake an investment project
: A Namibia firm ABC Holdings has a subsidiary company ABC Corporation, which is located in France. ABC Holdings trades with a British company TN Holdings and an
|
|
What are the ethical issues involved in the case
: Meredith Ward is the assistant chief accountant at Frazier Company, a manufacturer of computer chips. What are the ethical issues involved in this case?
|