Item 1
Blackburn Bank has invested in assets of $1 million a 30-year, 3.12 percent semiannual coupon Treasury bond selling at par. The assets are financed with equity and a $900,000 , two year, 2.20 percent semiannual coupon capital note selling at par. What would be the duration of this Treasury Bond?
$900,000=par value
Item 2
CoursHeroTranscribedText: Check my work Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $303,100. On that date, the noncontrolling interest had a fair value of $129,900 and the book value of Square's net assets was $397,000, The book values and fair values of Square's assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired. PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20x9 Plaza Corporation Item Square Company Debit Credit Cash and Receivables Dable Credit 90, 300 $ 94,000 Inventory 210,000 119,000 Land, Buildings, & Equipment (net) 283,000 263,000 Investment in Square Company 304, 552 Cost of Goods & Services 188, 000 138,000 Depreciation Expense 27,000 17,000 Dividends Declared 22,000 5,000 Sales & Service Revenue 303,000 $203,000 Income from Square Company 47, 252 Accounts Payable 50,000 29,000 Common Stock 186,000 167,000 Retained Earnings 538, 600 237,000 $1, 124, 852 $636,000 Total $1, 124, 852 $636,000 On January 1, 20X9, Plaza's inventory contained $46,000 of unrealized intercompany profits recorded by Square. Square's inventory in that date contained $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 20X8 ventories to unrelated companies in 20X9.Check my work During 20X9, Square sold inventory costing $54,000 to Plaza for $79,000. Plaza held all inventory purchased from Square during 20X9 on December 31, 20X9. Also during 20X9, Plaza sold goods costing $70,800 to Square for $118,000. Square continues to hold $40,120 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equity method. Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Import a new list A Record the basic consolidation entry. B Record the excess value (differential) reclassification entry. C Record the entry to reverse last year's deferral. D Record the deferral of this year's unrealized profits on inventory transfers. CreditHelp Save & Exit Su b. Prepare a consolidation worksheet as of December 31, 20X9. (Values in the first two columns (the "parent" and "subsidiary" Check my v balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries Into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount enter this amount in the credit column of the worksheet.) PLAZA CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X9 Consolidation Entries Plaza Corp. Square Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Depreciation Expense Income from Square Company Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income I ass- nivirlande declared
