User Account

All Pages

Discuss what is the new cost basis of the municipal bonds

Assignment Help Accounting Basics
Reference no: EM131771256

Hagar Corporation has municipal bonds classified as held-to maturity at December 31, 2017. These bonds have a par value of $800,000, and amortized cost of $800,000, and a fair value of $720,000. The company believes that impairment accounting is now appropriate for these bonds.

a) Prepare the journal entry to recognize the impairment.

b) What is the new cost basis of the municipal bonds? Given that the maturity value of the bonds is $800,000, should Hagar Corporation amortize the difference between the carrying amount and the maturity value over the life of the bonds?

c) At December 31, 2018, the fair value of the municipal bonds is $760,000. Prepare the entry (if any) to record this information.

Reference no: EM131771256

Questions Cloud

Conducting a randomized experiment : "People who often attend cultural activities, such as movies, sports events and concerts, are more likely than their less cultured cousins to survive.
Identify the various conflicts and resistance to change : Identify the various conflicts and resistance to change. Determine whether the change is programmatic, discontinuous, or emergent.
Journalize the three transactions : On March 1, Year 1, Chase Inc. purchases 35% of the outstanding shares of Glory Corporation stock for $325,000. Journalize the three transactions
Interest compounded two times per year : How long will it take to double $300 if it is invested at 7% annual interest compounded two times per year?
Discuss what is the new cost basis of the municipal bonds : What is the new cost basis of the municipal bonds. Given that the maturity value of the bonds is $800,000
Equation of motion and find its general solution : 1 An object stretches a spring 6 inches in equilibrium. 1. Set up the equation of motion and find its general solution.
Which value of a does the system exhibit a resonance : Consider the forced spring mass system (dy2/dt2) + 5y = 6 sin(at). Where a is a parameter.
Mary perception of her performance : 1. What is Mary's perception of her performance? How did she come to this conclusion?
Critically evaluate the factor in the external environment : Critically evaluate the factor in the external environment that impact directly on the HR strategy in its creation and execution .use example to support.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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