What amount should abc report as investment in bonds

Assignment Help Accounting Basics
Reference no: EM132568098

Question 1: On July 1, 2017, ABC Co. purchased an investment measured at amortized cost P1,000,000 of DEF, Inc's 8% bonds for P946,000, including accrued interest of P40,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1,2024 and pay interest annually on January 1. ABC uses the effective method of amortization. In its December 31,2017 balance sheet, what amount should ABC report as investment in bonds?

Option 1: P916,600

Option 2: P911,300

Option 3: Answer not given

Option 4: P960,600

Option 5: P953,300

Reference no: EM132568098

Questions Cloud

Compute adjusted gross income : If Tara materially participates in the business of both corporations, compute her Adjusted Gross Income (AGI)
What is the mass of the lightest vector meson : What is the mass of the lightest vector meson formed by bottom quarks and antiquarks (b)? Please give a value in GeV accurate to within 10%.
How an attack on a computer or computer network began : You are to take one of the web browsers from the top 10 (see website below) and provide in depth research on the web browser to include such things as history.
What is the approximate temperature in degrees celsius : On a nice winter day at the South Pole, the temperature rises to -47°F. What is the approximate temperature in degrees Celsius?
What amount should abc report as investment in bonds : ABC uses the effective method of amortization. In its December 31,2017 balance sheet, what amount should ABC report as investment in bonds?
Determine resultant in newtons : Given are the vectors A = 30 Newtons 45 degrees N of W and B = 45 Newtons 75 degrees S of E. Determine their resultant in Newtons
What is the peak height measured from the throwing point : An object was thrown vertically upwards and it reached it peak height after 2.5 seconds before dropping back.
How tam is impacting educational settings : The key focus of the article was how technology-based leadership has driven the digital age. Also, that the role of technology leadership incorporates.
Determine the tax cost for the shareholders Larry : Larry and Katy are the equal shareholders in LK Corporation. Both shareholders have a 37 percent marginal tax rate. Determine the tax cost for the shareholders

Reviews

Write a Review

Accounting Basics Questions & Answers

  What were the corporation net sales and cost of goods sold

ACCT 221 Principles of Accounting Assignment, University of Maryland University College, USA. What were the corporation net sales and cost of goods sold

  Determine number of units of widgets for bravo to breakeven

During FY 2016, Bravo Company plans to sell Widgets for $5.00 a unit. Use this information to determine the number of units of Widgets for Bravo to breakeven

  Identify which aspects of this narrative fit

Identify which aspects of this narrative fit each of the following parts of the definition of auditing

  Storing and retrieving information at a high rate

How tightly the bits can be packed next to one another on a disk is referred to as

  Prepare complete depreciation schedule

Prepare complete depreciation schedule, beginning with the current year, using the 150 percent declining-balance, switching to straight-line

  Cane company manufactures two products called alpha and

cane company manufactures two products called alpha and beta that sell for 150 and 110 respectively. each product uses

  What is current price of the bonds

Midland Oil has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 15 years. What is current price of the bonds

  Discuss the implication of your findings in terms of the

1. use appropriate descriptive statistics to summarize the transmission failure data. discuss. 2. develop a 95

  Preparing financial statements on a liquidation basis

has determined that the company will be preparing its financial statements on a liquidation basis of accounting due

  What you learned about independence in the accounting

Submit a 100-150 word summary of what you learned about "independence" in the accounting profession

  Discuss the political-economic and technological trends

Evaluate and discuss the political, economic, and technological trends of the emerging market. Remember to discuss any financial actions that have been taken.

  Entity relationship problemsdraw the entities and the

entity relationship problemsdraw the entities and the minimum and maximum cardinalities for the two entities described

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