Question
Please answer the Q18 and Q17 both, Thanks very much! Your help can give me power! Q18: On January 1, 2020, Company Y issued a
Please answer the Q18 and Q17 both, Thanks very much! Your help can give me power!
Q18:
On January 1, 2020, Company Y issued a bond at 103 with a par value of $2,000,000, due in 30 years. On January 1, 2030, the company calls the entire issue at 104. What is the loss or gain on redemption? Assume the premium is amortized using straight-line.
Group of answer choices
$60,000 loss
$60,000 gain
$40,000 loss
$40,000 gain
Q17:
Which of the following is true about the presentation of liabilities and their disclosures?
Group of answer choices
a . All of the above is true
b. If an estimate of a loss contingency cannot be made, the company must issue a statement explaining that it is difficult to come to an estimate
c. Companies can use their own discretion to decide how to list the current liabilities accounts on the balance sheet (e.g. maturity, descending amount, liquidation preference)
d. Current liabilities are reported at their full maturity value
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