User Account

All Pages

What amount should king recognize as gain

Assignment Help Financial Accounting
Reference no: EM131106377

On June 30, 2010, King Co. had outstanding 9%, $5,000,000 face value bonds maturing on June 30, 2015. Interest was payable semiannually every June 30 and December 31. King did not elect the fair value option for reporting its financial liabilities.

On June 30, 2010, after amortization was recorded for the period, the unamortized bond premium and bond issue costs were $30,000 and $50,000, respectively. On that date, King acquired all its outstanding bonds on the open market at 98 and retired them.

At June 30, 2010, what amount should King recognize as gain before income taxes on redemption of bonds?

Reference no: EM131106377

Questions Cloud

Translate assembly language program into machine code : Translate the following assembly language program into machine code Translate the following machoine language program into assembly code
What are the different bases for stock valuation : What are the different bases for stock valuation when assets other than cash are received for issued shares of stock?
Schedule promotional activities : What tool/scan be used to document the overall promotional objectives; identify, plan and schedule promotional activities in action plans and ensure that time lines and costs for promotion of activities are realistic? What should be included in th..
Define a two-dimensional array named temp of three rows : Define a two-dimensional array named temp of three rows and four columns of type int such that the first row is initialized to 6, 8, 12, 9; the second row is initialized to 17, 5, 10, 6; and the third row is initialized to 14, 13, 16, 20.
What amount should king recognize as gain : At June 30, 2010, what amount should King recognize as gain before income taxes on redemption of bonds?
Reducing the setup cost at compserve : Example 12.4 illustrates why a company might invest to reduce its setup cost. It all depends on how much this investment costs, as specified (in the model) by the cost of a 10% reduction in the setup cost.
Use the afn equation to forecast the additional funds : At the end of 2008, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 5%, and the forecasted retention ratio is 30%. U..
Difference between the proportional and incremental method : Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.
Ordering audio cds at gmb with shortages allowed : In Example 12.3, Solver Table was used to show what happens when the unit shortage cost varies. As the table indicates, the company orders more and allows more backlogging as the unit shortage cost decreases.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute receivables turnover and days sales uncollected

Compute receivables turnover and days' sales uncollected for 2011 and 2010 for CVS and Walgreens. Accounts receivable in 2009 were $5,457 million for CVS and $2,496 million for Walgreens.

  Cash provided by operating activities and net income

Comment on the difference between net cash provided by operating activities and net income. Speculate on which number is likely to be the better indicator of long-term profitability.

  Bond paying interest quarterly from the date of issue

On 2/1/16, you issue a 10-year $100,000 bond paying interest quarterly from the date of issue. The market rate of interest has increased to 6% and the stated rate is 5%. Prepare the necessary journal entry/entries for July 31, 2016

  String thing corporation produces electric guitars

String Thing Corporation produces electric guitars. Their “Flying Z” style guitars are mainly used for students and guitar players looking for an inexpensive practice guitar. What would be the break-even point if String Thing only sold “Les Doug” gui..

  Students who study accounting are expected to be aware of

students who study accounting are expected to be aware of current events that impact upon the profession and be able to

  Break-even point and make the business more profitable

For the past ten years, you've worked at a PETCO Salon as a dog groomer. You're thinking of starting your own dog grooming business. You found place you could rent that's right next to a popular shopping center, and two of your friends (who are also ..

  Question 1product development costs are a material cost for

question 1product development costs are a material cost for various companies. they are either written off as a

  Life of ten years

The equipment has a useful life of ten years-The insurance was paid at the beginning of the year and represents a two-year policy

  What was balance in eve prepaid insurance

The liability policy was $63,000 for eighteen-months, and the crop damage policy was $24,000 for a two-year term. What was the balance in Eve's prepaid insurance as of December 31, 2012?

  Find the entry to record the sale

Which of the following correctly presents the journal entries to record Lanier's equity in McCoy's net income and the receipt of dividends from McCoy?

  How many shares are outstanding

A company has 500,000 shares authorized, 100,000 shares issued, and 10,000 shares in Treasury Stock. How many shares are outstanding?

  Determine the implied fair value of goodwill

Prepare an aging analysis and show how accounts receivable and the related allowance for doubtful accounts would appear in the balance sheet at December 31, 2009.

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