Cost of long-term investment in bonds

Assignment Help Accounting Basics
Reference no: EM13141663

Kern Company purchased bonds with a face amount of $400,000 between interest payment dates. Kern purchased the bonds at 102, paid brokerage costs of $6,000, and paid accrued interest for three months of $10,000. The amount to record as the cost of this long-term investment in bonds is

$424,000.

$414,000.

$408,000.

$400,000.

Reference no: EM13141663

Previous Q& A

  Find probability that three consumers recognize brand name

Find the probability that exactly 3 of the 5 consumers recognize the brand name. Also find the probability that the number who recognize it is not 3.

  Regarding in-text citations where no introduction is used

If you're using a pattern of development to explore the issues surrounding a topic, what pattern of development would you be using?

  Overstate current period net income

Which of the following would not overstate current period net income?

  What volume of a 0.150 m koh solution would have to be added

An acid solution is 0.100 M in HCl and 0.190 M in H2SO4.What volume of a 0.150 M KOH solution would have to be added to 550.0 mL of the acidic solution to neutralize completely all of the acid?

  Earnings per share of stoneland corporation

For 2010, Stoneland Corporation reported net income, $24,000; net sales, $400,000; and average shares outstanding, 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?

  Create confidence interval for proportion of all depositors

Construct a 90 percent confidence interval for the proportion of all depositors who ask for cash back. (Round your answers to 4 decimal places.)

  Explain power factor correction

Power factor correction, Three parallel impedances in rectangular form as follows

  What are some marketing objectives for a music festival?

What are some marketing objectives for a music festival?

  Amortization expense for the patent

Waves Company purchased a patent for $170,000 at the beginning of 2011, and estimated that its expected useful life was 10 years. The patent has a legal life of 17 years. What amount should be recorded as amortization expense for the patent in 201..

  What will happen if the volume of the container is reduced

A reaction vessel contains these compounds at equilibrium. What will happen if the volume of the container is reduced by 50% at constant temperature?

Reviews

Write a Review

 

Similar Q& A

  Expected return and standard deviation

Suppose Asset A has an expected return of 10% and a standard deviation of 20%. Asset B has an expected return of 16% and a standard deviation of 40%. I f the correlation between A and B is 0.35, what are the expected return and standard deviation ..

  What is suzys basis after the distribution

Suzy has been the sole shareholder of a calendar year S-Corporation since 1979. The S-Corporation has the following balances.

  Journal entries related to long term bonds

Prepare journal entries to record the following transactions related to long-term bonds of XYZ Co. On July 1, 2008 XYZ retired $150,000 of the bonds at 102 plus accrued interest. XYZ uses straight-line amortization.

  Accounting-current and future periods

Which type of accounting change should always be accounted for in current and future periods?

  What will its average inventory level be during the year

A firm expects to sell 10,000 units of its product annually. It estimates that it costs $200 to place an order and that each unit costs $7 annually to carry in inventory. It takes 7 days to receive an order once it is placed, and the store is open..

  What is the amount and character of the recognized gain

Sylva transfers to Leaf Corporation a machine she had purchased a year ago for $50,000. The machine has a $40,000 adjusted basis and a $55,000 FMV on the transfer date.

  Determine the book value of purchase

The Digby team has just purchased $39,660,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for $3,966,000 (1/10th of its original cost). What will b..

  Computing the factory overhead volume variance

The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units.

  What sort of ongoing training should take place

What are some of the most common costs incurred associated with an audit engagement? Which costs could be better controlled? Why?

  Description of total profit

The Loebuck grocery sells milk. The grocer orders milk from a local farmer fro $13 per case and sells for $16 per case. Unsold cases are disposed for $1.5 per case, and each case of shortage causes $3.7 loss of profit.

  Outside basis of partner

What is each partner's outside basis and how much gain (loss) must the partners recognize in 20X9 when Picture Perfect was formed?

  Basics of consolidated statements

Emron Company owns a 100% interest in the common stock of the Dietz Company. On January 1, 20X2, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period. The asset was sold at a $5,000 profit. In the consolidated statements, this p..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd