User Account

All Pages

What is the carrying amount of the financial asset

Assignment Help Accounting Basics
Reference no: EM133015308

Question - On January 1, 2018, Cane Company purchased bonds with a face value of P4,000,000 for P3,500,000 plus transaction costs of P211,618 with the business model of collecting contractual cash flows that are solely payments of principal and interest and to sell financial assets. The entity does not elect the fair value option in measuring financial assets. The bonds mature on December 31, 2020 and pay interest of 10% annually every December 31 with a 12% effective yield. What is the carrying amount of the financial asset on December 31, 2017?

A. 4,293,343

B. 4,070,364

C. 3,864,795

D. 3,807,853

Reference no: EM133015308

Questions Cloud

What is business analysis : What is business analysis? Write a sentence or two describing what it is and give an example of some tasks.
Describing a very difficult situation : A client is describing a very difficult situation and the helper says, "As you are talking, it feels as if my shoulders a weighted down. I'm wondering if that's
Identify the risks for accounts receivable at Victoria : Identify the risks for accounts receivable at Victoria Waterworks Ltd. and the related assertions. Document the audit procedures to address the risks
How much will she have at the end of years : How much will she have at the end of 30 years? Should she make this investment? Show all calculations to help her make a decision
What is the carrying amount of the financial asset : The entity does not elect the fair value option in measuring financial assets. What is the carrying amount of the financial asset on December 31, 2017
Is Fast Audits liable to Pinnacle Ltd : After the restatement of the financial statements, Argyle Ltd recognized a loss of $2,900,000 in the take-over deal. Is Fast Audits liable to Pinnacle Ltd
Make entries for the required consolidation data adjustments : Fair value of the land at 31 December 20X4 was $90,000. Make entries for the required consolidation data adjustments on 31 December 20X4, the year end
Explain health information exchange : Explain Health Information Exchange. Please provide examples.
What is the gain or loss from change in fair value : On December 31, 2018, a share of Doux Corp. has a fair value of $153/share. What is the gain or loss from change in fair value to be recognized

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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