Question
X company's 10 year 8% 10,000,000 face value of bonds have a carrying value of 9,672,300 on December 31, 2020. The bonds pay interest semiannually
X company's 10 year 8% 10,000,000 face value of bonds have a carrying value of 9,672,300 on December 31, 2020. The bonds pay interest semiannually at 8% on June 30 and December 31. On january 1, 2021, the bonds are called at 102. What loss be reported for the called bonds on the company 2021 income statement*
A. 102,000 loss
B. 200,000 loss
C. 327,700 loss
D. 527,700 loss
On January 1, 2020 , U Company received a 1,077,200 for 12% bonds with face amount of 1,000,000. The bonds were sold to yield 10% . Interest is payable semi annually every January 1 and July 1. The entity has elected the fair value option for measuring the financial liability. On December 31, 2020 the fair market value of the bonds is determined to be 1,064,600 due to market and interest factor.What amount should be reported as interest expense for 2020?
A. 129,264
B. 100,000
C. 120,000
D. 107,720
Lebron james is indebted to Kobe Bryant under 400,000 12% three year note dated December 31, 2013. Because of Lebron's financial difficulties developing in 2015, Lebron owed accrued interest of 48,000 on the note at December 31, 2015. Under a debt settlement, on December 31, 2015, Bryant agreed to settle the note and accrued interest for a tract of land having a fair value of 360,000. Lebron's acquisition cost of the land is 290,000 . Ignoring income taxes on its 2015 income statement Lebron should report as a result of of the debt settlement
A. Gain on disposal: 158,000. Extinguishment Gain: zero
B. Gain on disposal: 110,000. Extinguishment Gain: zero
C. Gain on disposal: 70,000. Extinguishment Gain: 40,000
D. Gain on disposal: 70,000. Extinguishment Gain: 88,000
answer only fast
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started