User Account

All Pages

What should Richman Co report as unrealized gain

Assignment Help Accounting Basics
Reference no: EM133047606

Problem - Richman Co. purchased P300,000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2022, with interest payable on July 1 and January 1. The bonds sold for P312,474 at an effective interest rate of 7%. The business model of Richman is both to collect contractual cash flows arising from principal and interests and sell financial assets.

Using the effective interest method, Richman Co. decreased the non-trading Debt Investments account for the Carlin, Inc. bonds on July 1, 2022 and December 31, 2022 by the amortized premiums of P1,062 and P1,098, respectively. At December 31, 2022, the fair value of the Carlin, Inc. bonds was P318,000.

What should Richman Co. report as unrealized gain to other comprehensive income for the year 2022?

A. P2,160

B. 9P5,526

C. P0

D. P7,686

Reference no: EM133047606

Questions Cloud

Identify three stocks that pay a 4 percent or more dividend : Identify three stocks that pay a 4 percent or more dividend. To learn more about each stock, click on its ticker symbol. What is the dividend rate (yield) of ea
Mitigating factors-solutions for npa management : 1. Indian Banking has witnessed major changes starting from nationalization in 1969 of 14 private sector banks again to privatization of banks in 1990s.
Evaluate the benefits of decision by tata group : Tata Group, a Mumbai based giant conglomerate was founded in 1868 and now consists of 90 companies focused on seven business segments that span, industrial prod
Utilitarian benefits of public order : Which is more important human rights to free speech or utilitarian benefits of public order?
What should Richman Co report as unrealized gain : What should Richman Co. report as unrealized gain to other comprehensive income for the year 2022
Las vegas condominium-california real estate : A developer is marketing his new condominium development on the Las Vegas Strip to upscale, Westside Los Angeles residents. Which law(s) must he follow: Subdivi
How much is the deposit in transit at the end of November : Bank debits for November, P600,000, including outstanding checks of P170,800 and November service charge of P1,200. How much is the deposit in transit
Calculate Blossom pension expenses : Blossom Corp. provides a defined contribution pension plan for its employees. Calculate Blossom pension expenses for 2020
Discuss the effects on distribution policy consistent : Discuss the effects on distribution policy consistent with: (1) the signaling hypoth-esis (also called the information content hypothesis)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the two common methods of depreciation

Determine the two common methods of Depreciation of depreciating assets, the useful lives or the depreciation rates used for Office Computer

  Calculate the residual income for the adams division

Washington Company has two divisions: the Adams Division and the Jefferson Division. Calculate the residual income for the Adams Division

  What should be hyde basic earnings per share

Net income for the year ended December 31, 2019, was $780,000. What should be Hyde's 2019 basic earnings per share

  Discuss the economic or damage related issues

Find some news related to intellectual property and discuss the economic or damage related issues

  Cumulative total net cash earnings for the past five years

alpha company is considering the purchase of beta company. alpha has collected the following data about betabeta

  Calculate a predetermined overhead rate

Problem - Allocation to accomplish smoothing, Calculate a predetermined overhead rate based on direct labor hours

  How much is the total dividend payable to shareholders

If preference is non-cumulative and participating up to 10%, how much is the total dividend payable to preference shareholders

  Many states pension plans have assumed they will earn 8

in recent years there has been a lot of media coverage about the funding status of pension plans for state employees.

  Prepare a budgeted income statement for the month of may

Prepare a budgeted income statement for the month of May 2016. Should Fairfield's management make the planned changes?

  Your grandmother has told you she can either give you 4000

your grandmother has told you she can either give you 4000 now or 5000 when you graduate from college in three years.

  Outline qualitative and quantitative guidelines

Outline the qualitative and quantitative guidelines of materiality. Prior to the withdrawal of AASB 1031 and with reference to the AASB 1031 Materiality

  Borrell company purchased 4 delivery trucks on january 2

borrell company purchased 4 delivery trucks on january 2 2013 for 22000 each. borrell expected 2 of the trucks to last

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