User Account

All Pages

If the change in fair value is attributable to a change

Assignment Help Accounting Basics
Reference no: EM131006349

1. AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2011. The bonds sold for $150 million. For bonds of similar risk and maturity the market yield was 9%. Upon issuance, AI elected the option to report these bonds at their fair value. On June 30, 2011, the fair value of the bonds was $145 million as determined by their market value on the NASDAQ. Will AI report a gain or will it report a loss when adjusting the bonds to fair value? If the change in fair value is attributable to a change in the interest rate, did the rate increase or decrease?

Reference no: EM131006349

Questions Cloud

Each of the bond issues matures on december : Other things being equal, which of the bond issues offers the most attractive investment opportunity at the prices stated? The least attractive? Why?
When a binding price ceiling is introduced into a market : When a binding price ceiling is introduced into a market, economists generally expect what outcome?
Minimum wage : According to our discussion in class, which of the following is true of the minimum wage in the U.S.?
Identify how delivery of nursing care could be affected : Identify how delivery of nursing care could be affected where standards are being met and where they are not being met.
If the change in fair value is attributable to a change : Will AI report a gain or will it report a loss when adjusting the bonds to fair value? If the change in fair value is attributable to a change in the interest rate, did the rate increase or decrease?
Determine the economic service life of the sifter : The operating cost is expected to follow the series described by 40,000 + 10,000k, where k is the number of years since it was purchased (k = 1 through 7). The salvage value is estimated to be $30,000 for years 1 and 2 and $20,000 for years 3 thro..
Find the z-transform using the residue method : Derive the transfer function and Compute and plot C(kT) when the input is a step input with magnitude - Find the z-transform using the residue method.
Develop an educational health promotion project : You will develop an educational health promotion project addressing the population/culture in your area. For or example, if you are in the Hispanic concentration, your project might be educational interventions to address how food choices are rela..
Prepare the journal entry to record interest on december : Prepare the journal entry to record their issuance by The Bradford Company on January 1, 2011.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Solve the process costing problem

Spectre Chemicals produces Zaloff in a two department process. Information on the two departments for March and April, 2011 are as follows

  Confidence intervals-chi-square tests

Many people do not "like" or "trust" single point estimates for things they need measured. Looking back at the data examples you have provided in the previous discussion questions on this issue, how might adding confidence intervals help managers..

  Land and a warehouse were acquired for 710000 what amounts

land and a warehouse were acquired for 710000. what amounts should be recorded in the accounting records for land and

  Ted and marvin brown purchased an apartment building

Ted and Marvin brown purchased an apartment building in building in 2002

  Debited cash and credited unearned rental income

Stan received $12,000 from a tenant on December 1 for four months' rent of an office. This rent was for December, January, February, and March. If Stan debited Cash and credited Unearned Rental Income for $12,000 on December 1, what necessary adju..

  Also given are the employees salaries or wages

During the third calendar quarter of 20, the Beech tree Inn, owned by Dawn Smedley, employed the persons listed below. Also given are the employees' salaries or wages and the amount of tips reported to the owner.

  Schrader inc uses a budgeted factory-overhead rate to apply

schrader inc uses a budgeted factory-overhead rate to apply overhead to production. the following data are available

  What might a declining balance of long term debt

1. If you won $1,000,000 in the state lottery and had a choice between receiving $50,000 a year for 20 years or getting a one-time payment of $560,000, which would you take?

  Apollo company manufactures a single product that sells for

apollo company manufactures a single product that sells for 160 per unit and whose total variable costs are 120 per

  Discuss whether esteban is performing in a professional

Discuss whether Esteban is performing in a professional manner. If you were a manager, what would you do differently in order to make sure your employees are not using the company's assets for their own benefit?

  Three years ago a machine was purchased for 5000 assuming a

three years ago a machine was purchased for 5000. assuming a ten-year life and straight line depreciation with a no

  Statements of retained earning in its most recent

statements of retained earning in its most recent financial statements newhouse inc. reported 50 million of net income

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