Income statement from the investment

Assignment Help Accounting Basics
Reference no: EM13157824

On October 1, 2007, Lyman Co. purchased to hold to maturity, 200 of the $1,000 face value, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, what was the amount reported in Lyman's 2007 income statement from this investment?

A. $5,460

B. $4,020

C. $4,500

D. $4,980

Reference no: EM13157824

Questions Cloud

Modern forensic techniques can be beaten or circumvented : 1. Usually, if a work of art carries a significant price tag, it requires a credible provenance. The task is different for stolen than for fake material. Please explain.  2. Discuss and explain how modern forensic techniques can be beaten or circumve..
Business process where production is small : Identify and explain a business process where production (product or service based) is small lot/batch size. What are the supply chain implications of the lean system emphasis on small lot sizes for such business?
What do the unusually large maturity yield differentials : What do the unusually large maturity yield differentials noted above suggest about investor expectations of future short term interest rates?
State what is the mass of the aluminum cylinder : If we add a solid aluminum cylinder to a graduated cylinder containing 19.2 mL of water, and the water level in the cylinder rises to 24.7 mL, what is the mass of the aluminum cylinder?
Income statement from the investment : Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, what was the amount reported in Lyman's 2007 income statement from this investment?
Specific functions of incident command system : Confusion and chaos are often at the heart of any disaster. Identify how the Incident Command System can aid in coordination efforts. Describe specific functions of the Incident Command System.
What will be the concentration of h2so4 in the battery : Suppose that a fully charged lead-acid battery contains 1.50 L of 5.00 M H2SO4. What will be the concentration of H2SO4 in the battery after 3.30 A of current is drawn from the battery for 8.00 hours?
Uderstanding of james and russell philosophies : Based on your understanding of James's and Russell's philosophies, explain what James means by ‘cash value' of truth (true beliefs), and answer the following question:
State saturated mixture of steam and water : A piston-cylinder device contains a saturated mixture of steam and water having a total mass of 0.5 kg at a pressure of 160 kPa and an initial volume of 100 liters

Reviews

Write a Review

Accounting Basics Questions & Answers

  Computing its annual deloetion expense for the minerals

Which depletion method does Kent use to compute its annual deloetion expense for the minerals remove from the ground?

  Payoff matrix and nash equilibrium for monsanto

Now assume that eh interaction is sequential where Holland Sweetener chooses to enter and if so they face the pricing problem in the second stage.  Should Holland Sweetener enter?

  What is the full cost of the globe

Assume that the quantity demanded at the price calculated in part a is only 600 units. What is the full cost of the globe, and what is the price with a 25 percent markup?

  Cost of equity capital-allegheny valley power company

The Allegheny Valley Power Company common stock has a beta of 0.80. If the current risk-free rate is 6.5%(Krf)and the expected return on the common stock as a whole is 16%(Km)

  Basics of determining operating profit

A firm operated at 90% of capacity for the past year, during which fixed costs were $320,000, variable costs were 60% of sales, and sales were $1,000,000. Operating profit was:

  What are retained earnings

What are retained earnings? What items increase the balance in retained earnings? What items decrease the balance in retained earnings?

  What is the reason for the apparent inconsistency

A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and in which type of fund, should it recognize the related expense? What is the reason for the apparent inconsistency..

  Determine the price variance

Determine the (a) price variance, (b) quantity variance, and (c) cost variance -  Diamond Company produces a chair that requires 5 yds. of material per unit.

  Interest in a passive activity

In the current year, Louise invests $50,000 for a 10% interest in a passive activity. Her share of the loss this year is $10,000. If this is her only passive activity, the $10,000 loss is suspended for use in a future year.

  Determine the company most profitable sales mix

Determine (1) the company's most profitable sales mix and (2) the contribution margin that results from that sales mix.

  Present value of machine investment

The machine is expected to reduce labor costs by $70,000 per year and material scrap by $20,000 per year. The machine is expected to have a 5-year life. What is the present value of this investment, assuming a 12% interest rate?

  Problem on revenue and payroll cycles

What internal controls components are commonly found among the revenue and payroll cycles? What components are unique to each cycle? - Answer 150-200 words.

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