Reference no: EM132708711
Questions -
A. On March 31, 20x7, BRIT issued for $1,774,000, $2,000,000 face amount of its 10%, $1,000 bonds. The bonds were issued to yield 12%. The bonds are dated July 1, 20x7 and mature on July 1, 20x10. Interest is Payable annually on July 1. BRIT uses the interest method to amortize bond discount. Determine the carrying value of the Bonds on December 31, 20x7.
B. One Company sells 500 laptop computers in 20X9 for $100,000 each. Each one has a one-year warranty. It is estimated that the warranty cost for each computer will be $10,000 for each computer. In 20X9, the company actually incurs warranty cost of $1,000,000. What is the warranty expense for 20x9?
C. On February 5, 2020, an employee filed a $2,000,000 lawsuit against Mithril Company for damages suffered when one of Mithril's plant exploded on December 9, 2019. The legal counsel believed the entity would probably lose the lawsuit and estimated the loss to be $500,000. The employee offered to settle the lawsuit out of court for $900,000 but the entity did not agree to the settlement. On December 31, 2019, what amount should be reported as liability from lawsuit?
|
What are the perils of historical premiums
: In the United States, for example, there is a wealth of historical information by which to make such estimates. What are the perils of historical premiums?
|
|
Give an example of one that would pose a threat
: Stakeholder conflict can occur when the goals, Give an example of one that would pose a threat to the long-term valuation of a firm.
|
|
Which cost flow method should Quality Diamonds select
: Quality Diamonds carries only one brand and size of diamonds - all are identical. Which cost flow method should Quality Diamonds select
|
|
Explain the nature of the gain
: Maria meets all of the requirements of § 1237 (subdivided realty). Explain the nature of the gain (i.e., ordinary income or capital gain).
|
|
What is the warranty expense
: One Company sells 500 laptop computers in 20X9 for $100,000 each. In 20X9, the company actually incurs warranty cost of $1,000,000. What is the warranty expense
|
|
What the amount that sunland should record as depreciation
: On January 1, 2019, Sunland Corporation acquired machinery, What the amount that Sunland should record as depreciation expense for 2022 is?
|
|
Prepare journal entries for the transactions occurred
: Prepare journal entries for the transactions occurred in 2017 and make the appropriate entry to apply the fair market valuation for these investments
|
|
What amount will be debited to construction in process
: Cullumber Inc., a real estate developing company, What amount will be debited to Construction in Process account, to record the change at beginning of 2021?
|
|
What is the labor rate variance
: The job was completed in 540 hours and the average actual labor rate was $18.20 per hour. What is the labor rate variance
|