Determining income statement from investment

Assignment Help Accounting Basics
Reference no: EM13141424

On October 1, 2010, Menke Co. purchased to hold to maturity, 200, $1,000, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2014. Menke uses straight-line amortization. Ignoring income taxes, the amount reported in Menke's 2010 income statement from this investment should be

$4,500.

$4,020.

$4,980.

$5,460.

Reference no: EM13141424

Questions Cloud

What happens to serum ph : When many excess hydrogen ions accumulate in the blood, what happens to serum pH? The pH: Decreases, increases, or remains constant? Please be clear with explanation.
Explain ac circit analysis and max power transfer : AC Circit analysis and max power transfer, If the output impedance of a certain driving circuit is 50 Ohm - j10 Ohm, what value of load impedance will result in the maximum power to the load?
Annotated bibliography : Type your question here Is there anyone that can write an annotated bibliography for me this week? I don't know and understand how to do one.
What are some of major differences in our budget process : What are some of major differences in our budget process for "For Profit" and "Not For Profit" organizations?
Determining income statement from investment : On October 1, 2010, Menke Co. purchased to hold to maturity, 200, $1,000, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2014. M..
Cubbie group is reportedly the largest water license holder : Cubbie Group is reportedly the largest water license holder and commercial agricultural operation on the Murray-Darling Basin, with a cotton growing enterprise that spans two main properties located near Dirranbandi and St George in south-west Queens..
How is the solubility of manganese(ii) sulfide affected : Consider the dissolution of MnS in water (Ksp = 3.0 × 10-14). MnS(s) + H2O(l)-> Mn2+(aq) + HS-(aq) + OH-(aq) How is the solubility of manganese(II) sulfide affected by the addition of aqueous potassium hydroxide to the system?
What should black report as its allowance for doubtful : Black estimates that 5% of accounts receivable will prove to be uncollectible. What should Black report as its Allowance for Doubtful Accounts at 12/31/12?
What are the frequencies of the m alleles : In a population of 10,000 individuals, where 3600 are MM, 1600 are NN, and 4800 are MN, what are the frequencies of the M alleles and the N alleles?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining optimal price and output

Suppose the two firms act as perfect competitors and try to out compete each other and do not collude, what would be the optimal industry price and output?

  Vertical axis representing per-unit cost

ABC company pays a sales commission of 5% on each unit sold. If a graph is prepared with the vertical axis representing per-unit cost and the horizontal axis represented units sold how would a line that depicts sales commission be drawn?

  Net operating income-operating assets

Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's turnover rounded to the nearest tenth?

  Should every company adopt a set of ethical standards

Do you agree with Pat's decision? Why or why not? How important do you think Pat's assessment of his personal risk was in decision? Should it be a factor?

  Concept of allowance for doubtful accounts

Determine the amount to be added to Allowance for Doubtful accounts in each of the following cases. (a) Balance of $500 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of $9,500.

  Tax treatment of social security benefits

Based on your understanding of how social security benefits are taxed when received, is the tax treatment of social security benefits fair?

  Calculation of cash flow from operations treats depreciation

On a statement of cash flows that uses the indirect approach, calculation of cash flow from operations treats depreciation as an adjustment to reported net income because:

  Impairment loss for collier company

What is the impairment loss for Collier Company under a) IFRS and b) US GAAP?

  Benefits of maximization of stock price

Discuss the benefits of maximization of stock price to the society, focusing on three groups of stakeholders: owners, consumers and employees.

  Corporations conducting performance measurement

What are the issues and complications that may arise when multinational corporations conduct performance measurement and comparisons among subsidiaries located in different countries?

  Recast the income statements

If the East territory is discontinued, one sales manager (whose salary is $40,000 per year and is part of the fixed costs) will be relocated to the West territory. By how much would Green's income change if the East territory is eliminated? Recast..

  Preparing the stockholders equity section

The paid-in capital in excess of par value on the preferred stock was $12,000. Retained earnings at December 31, 2010 was $172,000. Prepare the stockholder's equity section of the balance sheet, as of December 31, 2010. If need be, prepare in an E..

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