Suppose $20.000 of 8% bonds were purchased on March 1, 2020, for a purchase price of 90. The purchasing company, whose year-end is December 31, expects to hold the bonds until their maturity date five years from the date of purchase. Interest on the bonds will be paid every March 1 and September 1 until maturity Assuming the premium or discount is amortized every interest payment using straight-line amortization, how much interest payment will be received by the investor on September 1, 2020? O A. $800 OB. 5600 OC. $1,000 OD. $1.200 Suppose a Canadian company purchased merchandise from a British firm for 200,000 British pounds. Assume the exchange rates for the British pound were as follows: Date of purchase: $2.36 Date of cash payment $2.33 What was the exchange gain/loss for the Canadian company on this transaction? O A. $6,000 gain OB. $4,000 loss O C. $2,000 gain OD. $8,000 loss Suppose that $5,000 of 5% bonds were purchased on April 1, 2020. by a company whose year-end is December 31, as a Long-Term Investment. Interest dates are April 1 and October 1. The bonds mature 36 months from date of purchase. The purchase price of the bonds was $5,120, and the premium is amortized on a straight-line basis. Assume the proper adjusting entry was made on December 31, 2020, to record accrued interest receivable and amortization of the premium. What will be the total interest revenue recorded by the investor on April 1, 2021? O A. $52.50 OB. $125.00 OC. $62.50 OD. $72.50 On September 1, 2020, Jacob Ltd, purchased 100,000 common shares for a 20% interest in Blue Sky Drilling Corporation for $15 per share, and paid a $7,000 brokerage commission for the purchase. Jacob Lid intends to hold this investment for several years and does not have significant influence over Blue Sky Drilling the market value of the Blue Sky Drilling shares at December 31, 2020, is $19 per share on February 15, 2021 Blue Sky Drilling distributed a total dividend to its shareholders of $50,000 Jacob Ltd, sold one half of the shares on June 30, 2021 for $16 per share Which of the following is the correct journal entry to record the purchase? Short-Term Investments O A Brokerage Commission Expense Cash 1,500 000 7,000 1.507 000 1,500,000 Investment in BlueSky Drilling Common Shares OB. Brokerage Commission Expense Cash 7.000 1,507 000 Long-Term Investments OC. Brokerage Commission Expense Cash 1.500.000 7,000 1,507.000 1507.000 OD Investment in Blue Sky Drilling Common Shares Cash 1.507 000 Click to select your answer 6:50 PM On January 2, 2020. Didek Corporation purchased 30% of the outstanding shares of Sim Corporation for $500,000. Net income reported by Sim Corporation for 2020 and 2021 was, respectively. $90,000 and 5130,000 Dividends paid by Sim Corporation during 2020 and 2021 were, respectively. 530,000 and $45,000 Didek Corporation has representation on the board of directors for Sim Corporation The investment in common shares account will appear on Didek Corporation's December 31, 2021, balance sheet at O A $566,000 OB. 5575.000 OC. $543,500 OD. $500,000 Big Corporation paid 595,000 to acquire a 30% investment in the common shares of Little Corporation on January 3 2020 On December 31, 2020 Little Corporation's net income was $210,000 and Little Corporation paid dividends of $80,000. On December 31, 2021 Little Corporation's net income was $170,000 and Little Corporation paid dividends of $60,000 Big Corporation used the equily-method to account for this investment Big Corporation sells 50% of its shares of Little Corporation for $77,000 on January 3, 2022 This would result in a O A. loss on sale of investment of $6.500 OB. gain on sale of investment of $4,000 OC. gain on sale of investment of 590.000 OD gain on sale of investment of $6,500 Bailey Corporation accounts for its 35% investment in Carnes Corporation using the equity method of accounting. The investment was made on January 2, 2020, at a cost of $450,000. During 2020. Carnes Corporation reported $100,000 of income and paid $40,000 in dividends. After making all appropriate entries the balance in Bailey Corporation's investment in Carnes Corporation common shares account will equal O A $429,000 OB. 5450,000 OC. $471,000 OD. 5510,000 Click to select your answer Suppose 520,000 of 8% bonds were purchased on March 1, 2020 for a purchase price of 90. The purchasing company, whose year-end is December 31, expects to hold the bonds until their maturity date five years from the date of purchase Interest on the bonds will be paid every March 1 and September 1 until maturity. Assuming the premium or discount is amortized every interest payment using straight-line amortization, how much interest revence will be recorded by the investor on September 1, 2020? O A $1,000 OB. 51,200 O C 5600 OD. $800 On July 15, 2020. Sanders Lid purchased 5.000 common shares in Signet Mining Corporation for $32 per share and paid a 5800 brokerage commission for the purchase. Sanders intends to hold this investment for less than a year and classifies it as a Short-Term Investment. The market value of the shares at December 31, 2020, is $29 per Share On February 15, 2021, Signet Mining announced a 2-for-1 stock split. Sanders sold one half of the shares on March 31, 2021 for $15 per share After the distribution of shares relating to the stock spil, the Sanders Ltd total cost of the investment O A increases by 150% O B. decreases by 50% O C. increases by 100% OD. remains the same Tiger Inc purchased $185,000,8%, five year bonds to hold until maturity. The bonds were purchased on July 1, 2020, and will mature on July 1, 2025. Interest payment dates are July 1 and December 31, Market value of the banda on July 1, 2020 was 94. Tiger uses the straight-line method to amortize any bond discount or premium The journal entry at December 31, 2020 to record the amortization of the discount will include a O A. debit to Interest Revenue of 51.110 OB. credit to Investment in Bonds of $1.110 OC. credit to Interest Revenue of 51,110 OD. credit to Interest Revenue of 58 510 Parson Products Inc. purchased 5186,000, 10% five year bonds to hold until maturity. The bonds were purchased on July 1, 2020 at market value which was 103, and will mature on July 1, 2025 Interest payment dates are June 30 and December 31. Parson uses the straight-line method to amortize any bond discount or premium What is the debit to Investment in Bonds at July 1, 2020? O A $186.000 OB. $191,580 OC. $182,520 OD $180,420