On January 1, 2022, Sami Company purchased P1,000,000, 12% bonds for P1,031,024, a price that yields...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2022, Sami Company purchased P1,000,000, 12% bonds for P1,031,024, a price that yields 11%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2025. On April 1, 2023, Sami Company sold P800,000 face value bonds at a total proceeds of P825,000. Market values of the bonds were as follows: December 31, 2022 December 31, 2023 102 101 How much is the gain (loss) on sale on April 1, 2023 assuming that Sami Company has no objective of collecting contractual cash flows? On January 1, 2022, Sami Company purchased P1,000,000, 12% bonds for P1,031,024, a price that yields 11%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2025. On April 1, 2023, Sami Company sold P800,000 face value bonds at a total proceeds of P825,000. Market values of the bonds were as follows: December 31, 2022 December 31, 2023 102 101 How much is the gain (loss) on sale on April 1, 2023 assuming that Sami Company has no objective of collecting contractual cash flows?
Expert Answer:
Related Book For
Taxation of Individuals 2017
ISBN: 9781259548666
8th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
James and Kate Sawyer were married on New Years Eve of 2019. Before their marriage, Kate lived in New York and worked as a hair stylist for one of the citys top salons. James lives in Atlanta where...
-
James and Kate Sawyer were married on New Years Eve of 2017.Before their marriage, Kate lived in New York and worked as a hair stylist for one of the citys top salons.James lives in Atlanta where he...
-
James and Kate Sawyer were married on New Year's Eve of 2014. Before their marriage, Kate lived in New York and worked as a hair stylist for one of the city's top salons. James lives in Atlanta where...
-
1. Prepare program using threads in java that can print 10 times the numbers 1,2,3,4,5 in a series. 2. Prepare program using threads and a semaphore in java that can print the numbers 1,2,3,4,5 in a...
-
Swaps often contain caps or floors. In this problem, you are to construct an oil contract that has the following characteristics: The initial cost is zero. Then in each period, the buyer pays the...
-
A stock has a beta of 1.14, the expected return on the market is 10.9 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be?
-
On December 31, 2020, Raven Company's portfolio of equity securities was valued at \(\$ 1,800\). The original cost of the investments in the portfolio was \(\$ 1,600\). Raven does not have...
-
Video Superstore has hired you to design two online data entry screens. Based on what you know about the operation of a video rental store, complete the following assignments. 1. Design a weekly...
-
Are there any control weaknesses in this process? Other Accounting System Features Monthly financial statements consist of a balance sheet, an income statement, and a statement of cash flows a...
-
In November 2011, after having incorporated Cookie Creations Inc., Natalie begins operations. She has decided not to pursue the offer to supply cookies to Biscuits. Instead, she will focus on...
-
Lauzon Mfg.'s July 31 inventory of raw materials is $160,000. Raw materials purchases in August are $420,000, and factory payroll cost in August is $235,000. Overhead costs incurred in August are:...
-
You deposit $14,039.38 in the bank today and want to withdraw $2,000 at the end of each of the next 8 years. What interest rate do you have to earn to accomplish this goal?
-
Linux is an open source variation of the Unix OS and there are many versions of the OS freely distributed on the internet. Research 3 (three) major distributions of Linux, and compare them (uses,...
-
For the chosen company, Chick-fil-A. Find out some emerging markets that they are doing business in and then research for information about their challenges and risks when entering emerging markets....
-
You plan to purchase a $ 1 5 0 , 0 0 0 house using a 3 0 - year mortgage obtained from your local credit union. The mortgage rate offered to you is 4 percent. You will make a down payment of 2 0...
-
I have seen an example of an emerging approach that has been successful in the commercial world. Competition from other businesses operating in the same industry was fierce for the company I worked...
-
Problem 1 Rocco Corporation has a book net worth of P10,380. Long-term debt is P7,500. Net working capital, other than cash, is P2,105. Fixed assets are P15,190. How much cash does the company have?...
-
United Business Forms capital structure is as follows: Debt ............................................ 35% Preferred stock ........................... 15 Common equity .......................... 50...
-
Whitney received $75,000 of taxable income in 2016. All of the income was salary from her employer. What is her income tax liability in each of the following alternative situations? a. She files...
-
To help pay for the city's new stadium, the city of Birmingham recently enacted a 1 percent surcharge on hotel rooms. Is this a tax? Why or why not?
-
Brooke works for Company A for all of 2016, earning a salary of $50,000. a. What is her FICA tax obligation for the year? b. Assume Brooke works for Company A for half of 2016, earning $50,000 in...
-
Adaris Group, headquartered in the UK, owns a 70 percent interest in Adaris Malaysia. The acquisition cost was 200 million. At the date of acquisition, 1 January 2012, Adaris Malaysia's book value...
-
Misre Nim is played just like Nim but where the last player to move loses. A losing position is therefore a single Nim heap with a single token in it (which the player then has to take). Another...
-
The impartial game Cram is played on a board of \(m \times n\) squares, where players alternately place a domino on the board which covers two adjacent squares that are free (not yet occupied by a...
Study smarter with the SolutionInn App