Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem1: Which of the following must be disclosed relative to long-term debt maturities & sinking fund requirements?

[A] The amount of scheduled interest payments on long-term debt during each of the next 5 years.

[B] The amount of future payments for sinking fund requirement & long-term debt maturities during each of the next 5 years.

[C] The present value of future payments for sinking fund requirements & long-term debt maturities during each of the next 5 years.

[D] The present value of scheduled interest payments on long-term debt during each of the next 5 years.

problem2: A company issues $20,000,000, 7.8%, 20-year bonds to yield 8 percent on January 1, 2007. Interest is paid on June 30 & December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2007?

[A] $1,568,498

[B] $1,568,332

[C] $780,000

[D] $1,560,000

problem3: On January 1, 2002, Pine Corp. issued 1,000 of its 10%, $1,000 bonds for $1,040,000. These bonds were to mature on January 1, 2012 but were callable at 101 any time after December 31, 2005. Interest was payable semiannually on July 1 & January 1. On July 1, 2007, Pine called all of the bonds & retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Pine's gain or loss in 2007 on this early extinguishment of debt was

[A] $10,000 gain

[B] $8,000 gain

[C] $30,000 gain

[D] $12,000 gain

problem4: Limeway Company issues $5,000,000, 6 percent, five year bonds dated January 1, 2007 on January 1, 2007. The bonds pay interest semiannually on June 30 & December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?

 

2.50%

3.00%

5.00%

6.00%

Present value of a single sum for 5 periods

0.88385

0.86261

0.78353

0.74726

Present value of a single sum for 10 periods

0.7812

0.74409

0.61391

0.55839

Present value of an annuity for 5 periods

4.64583

4.57971

4.32948

4.21236

Present value of an annuity for 10 periods

8.75206

8.5302

7.72173

7.36009

[A] $5,218,809

[B] $5,217,308

[C] $5,000,000

[D] $5,216,494

problem5: The December 31, 2006, balance sheet of Eddy Corporation includes the following items:

9% bonds payable due December 31, 2015 

$1,000,000

Unamortized premium on bonds payable  

27,000

The bonds were issued on December 31, 2005, at 103, with interest payable on July 1 & December 31 of each year. Eddy uses straight-line amortization. On March 1, 2007, Eddy retired $400,000 of these bonds at 98 plus accrued interest. What should Eddy record as a gain on retirement of these bonds? Ignore all taxes.

[A] $18,600

[B] $20,000

[C] $18,800

[D] $10,800

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918743
  • Price:- $10

Guranteed 24 Hours Delivery, In Price:- $10

Have any Question? 


Related Questions in Basic Finance

A uk-based multinational company has sold an overseas

A UK-based multinational company has sold an overseas chemical plant, the price for the plant being determined by an earn-out agreement. The amount of the receipt under the agreement is likely to be $10m, with a maximum ...

An insurance company checks police records on 1200 randomly

An insurance company checks police records on 1200 randomly selected auto accidents and notes that teenagers were at the wheel in 180 of them. Construct a 90% confidence interval estimate of the proportion of auto accide ...

Write a questionnaire about a new storeassume that you have

Write a questionnaire about a new store. Assume that you have been asked to write a report on the feasibility of opening a packaging and shipping store, such as a UPS Store, in your town. Because students at your school ...

The performance of a journal bearing around a rotating

The performance of a journal bearing around a rotating shaft is a function of the following variables: Q, the rate of flow lubricating oil to the bearing in volume per unit time; D, the bearing diameter; N, the shaft spe ...

The president of fly-by-night airlines has asked you to

The president of Fly-by-Night Airlines has asked you to evaluate the proposed acquisition of a new jet. The jet's price is $40 million, and it is classified in the 10-year MACRS class. The purchase of the jet would requi ...

1 when preparing a personal statement of financial

1. When preparing a personal statement of financial condition, should assets and liabilities be presented on the basis of historical cost or estimated current value? 2. In a personal statement of financial condition, wha ...

1 what are sources of economic profits for a company or an

1 .What are sources of economic profits for a company or an industry? 2. The following is an excerpt that appeared in an article "Strategic Planning: Not Just for Big Business" published at www.smallbusinessnotes. com/pl ...

Healthy foods just paid its annual dividend of 162 a share

Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all future dividends will be increased by 2.1 percent annually. What is one share of this stock worth to you if you require a ...

Analyze print communication-find an example of print

Analyze print communication:- Find an example of print communication, for example, a flyer on campus, a newsletter, or a magazine ad. With a partner, discuss why the creator of the message may have chosen a print medium. ...

If benchmarking does not exist at any level within an

if benchmarking does not exist at any level within an organization, identify some organizational goals that could benefit from benchmarking activities, and strategies you would recommend to employ benchmarking

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen