Reference no: EM132764697
Question: On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $55 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 14%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: 1-a. Determine the price of the bonds at January 1, 2021.
1-b. Prepare the journal entry to record their issuance by Instaform.
2-a. Assume the market rate was 11%. Determine the price of the bonds at January 1, 2021.
2-b. Assume the market rate was 11%. Prepare the journal entry to record their issuance by Instaform.
3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.
|
How the irs collects income tax from each
: Davy Jones, a new tax client, walks into your office and informs you that he owns a charter fishing business. Jones is curious about the different legal.
|
|
Compute the passthrough to the shareholders
: Convey to HMI the tax effects of such a 2018 conversion to S status. Provide a restated HMI balance sheet as of June 30, 2018, and compute the passthrough.
|
|
How much income would be allocated to each partner
: XYZ has a Code Section 754 election in effect, and X sells her interest to W for $41,000 cash. The two Properties are both capital assets.
|
|
Are the given departments no longer necessary
: The level of day-to day department activity in advance technology systems is significantly lower than that of basic technology systems.
|
|
Prepare journal entry to record their issuance by instaform
: On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $55 million, dated January 1. The bonds mature in 2040 (20 years).
|
|
What the notes to the financial statements are
: Explain what the Notes to the Financial Statements are and identify and explain at least three items that are typically included in the notes.
|
|
What is the maximum amount she may contribute
: Victoria Perez (18) will be claimed as a dependent on her parents' 2019 tax return. During the year, she earned $1,575 in wages from a part-time job and $100.
|
|
What is the weighted average number of shares
: A company has 10,000 shares outstanding from 1/1 to 3/31, and 14,000 shares outstanding from 4/1 to 12/31. What is the weighted average number of shares used.
|
|
Explain which gaap principle applies to the scenario
: The famous singer Rihanna is going on a tour. She plans to perform at a concert on Sept 30th. Her agent is handling her financial transactions and recorded.
|