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

User Account

All Pages