Answer: I'm sorry but, if you don't have any back round information for me I cant help because you've already learned this stuff I haven't so, if you provide a paragraph or something maybe I can help...
He should use a business email and or tell them directly
Answer:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Explanation:
A deferred tax asset occurs when taxes are either been overpaid or there's an advance payment for them. In this scenario, they're not yet acknowledged in the income statement.
Valuation allowance is a reserve used by a business to offset the deferred tax asset. The statements that are true about the valuation allowance are:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Answer:
June 30, 2020 Bond Interest expense Debit $5,756.25
Discount on Bonds payable Credit $506.25
Cash Credit $5,250
Explanation:
We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount
Given,
Bond price = $150,000
Interest = 7%
Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20
Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)
Cash payment for semiannual interest = $5,250 (Credit)
Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)
Discount on bonds payable = $506.25 (Credit)
Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)
Answer:
The ratio of flotation cost to funds raised is 20.13%
Explanation:
First of all, it is noteworthy that actual amount received per share by Deep Hollow Oil is the issue price minus the underwriting spread of $2.6565
(8.05% of $33),in other words the net issue price is $30.3435
The total amount raised is $ 4,096,372.50 (135000*$30.3435
),while total flotation costs are as follows:
Underwriting costs $ 358,627.50
Legal and accounting fees $418,000
Indirect costs $48,000
Total flotation costs $824,627.50
However, the flotation costs as a percentage of funds raised is given below:
$824,627.50 /$4,096,372.50=20.13%
