What is the unrealized holding gain or loss to be recognized

Assignment Help Accounting Basics
Reference no: EM132774692

On January 1, 2011, ABC Inc. issued a 3-year term bonds payable with face value of P1,000,000 at 97. The annual interest of 10% is payable annually every December 31. ABC Inc. incurred and paid transaction cost related to issuance of stocks in the amount of P18,037. On December 31, 2021, the quoted price of the bonds is at 102. The increase in the fair value of the bonds payable attributable to credit risk amounted to P20,000.

Problem 1: What is the unrealized holding gain or loss to be recognized by ABC Inc. for the year ended December 31, 2011 in profit or loss section if it irrevocably designated the bonds payable at financial liability at fair value through profit or loss?

a. (P30,000) loss
b. (P20,000) loss
c. (P48,037) loss
d. (P78,037) loss

Reference no: EM132774692

Questions Cloud

The influence of cloud computing adoption : The Influence of Cloud Computing Adoption on Organisational Performance in SMEs in China Ensure to follow an appropriate dissertation outline
What factors would you consider in making decision : Or they will pay you a lump sum of $25 million today. What factors would you consider in making this decision? Which do you choose?
What are the three common accounts : Do you agree that the audit of Property, Plant and Equipment is much easier as compared with other accounts such as inventories, receivables
What should those supervisors have done differently : What did Carpenter's supervisors do correctly in terms of applying the MBO for his performance - What should those supervisors have done differently?
What is the unrealized holding gain or loss to be recognized : What is the unrealized holding gain or loss to be recognized by ABC Inc. for the year ended December 31, 2011 in profit or loss section
Define the aim of the content for the program : Develop three training objectives that will clearly define the aim of the content for the program - Prepare a facilitator's guide, or lesson plan
Find the interest expense to be recognized by abc inc : Find the interest expense to be recognized by ABC Inc. for the year ended December 31, 2011 if it classified the bonds payable at financial liability
What is total dividend income to be recognized by investor : What is the total dividend income to be recognized by the investor for the year ended December 31, 2010? Cash dividend in the amount of P100,000 from Investment
What is the value of a three-year : Given the information below on the prices (per $100 of face) of comparable zero coupon bonds, what is the value of a three-year $1,000 bond that pays a 5% annua

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd