Answer:
Assets should be recorded at cost basis. To determine cost basis we should determine the price that the company paid for the asset. If the only record about the purchase transaction is the note payable, then we can assume that the amount specified in the note payable is the purchase cost of the asset. The cost basis doesn't include any type of interest, but since the note doesn't specify any interest, then we can assume that there is no interest charged.
Answer:
Yes
Explanation:
Given:
- Coupon rate = 9%, because it pays the coupon semiannually, so
=> Coupon payment = 1000*9%/2 = 45
- Current market rate, YMT= 10%
So the current value of bond is:
C(1- (1+r)^(-n)/r + F/(
<=>45(1 - (1+0,1)^(-7/0.1)) + 1000(1+0,1)^7
<=> C = $951
So she will buy the bonds at the offered price 943.22 because it is smaller than $951
Answer:
Explanation:
Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.
1.
Goodwill calculation
Purchase price - $2,500,000
Fair value - $1,800,000
Goodwill - $700,000
2.
No
Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.
3
No
Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit
Haylie should reinvest her money elsewhere. Due to having her money locked up for 5 years and at an all time low with her current investments, it would not be beneficial to renew with them. Haylie’s best bet is to explore other options before her renewal rate starts so that she has a plan in place on where to reinvest her money. Haylie should focus on finding a bank that will provide better term agreements at a higher interest rate.
