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vitfil [10]
1 year ago
8

Washington inc. issued $705,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $8,

200 of the bond discount. On January 1, 2017. Washington Inc. retired the bonds at 102 (after making the interest payment on that date). What is the gain or loss that Washington Inc. would report for the retirement of this bond?
Business
1 answer:
cestrela7 [59]1 year ago
6 0

Answer:

$20,000

Explanation:

Bond discount at the issuance of bond:

= Worth of Bonds issued -  [(Worth of Bonds issued ÷ 100) × Issue price]

= 705,000 - [($705,000 ÷ 100) × 98]

= $705,000 - $690,900

= $14,100

Bond Payable = $705,000

Unamortized bond discount:

= Bond discount at the issuance of bond - Amortized amount

= $14,100 - $8,200

= $5,900

Redemption Value of Bond = Retired price of bonds × 7,050

                                              = 102 × 7,050

                                              = $719,100

Loss on retirement on Bond:

= Redemption Value of Bond - (Worth of Bonds issued -  Unamortized bond discount)

= 719,100 - (705,000 - 5,900)

= 719,100 - 699,100

= $20,000

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weqwewe [10]

Answer: $2151

Explanation:

The amount of the discount on these bonds at issuance will be the difference between the par value of the bond issues by Tank company and the price at which the bonds were sold. This will be:

= $82000 - $79,849

= $2151

Therefore, the amount of the discount on these bonds at issuance is $2151.

3 0
1 year ago
Normander Corp. is a large media corporation that owns all the media outlets in Liecheben and a few news agencies internationall
White raven [17]

Answer:

The correct answer is letter "B": monopoly.

Explanation:

A monopoly exists when one business is the sole or almost sole supplier of a good or service within a market.  This potentially allows the business to become dominant enough to prohibit rivals from entering the marketplace resulting in minimal consumer choice, higher prices, and reduced response to customer requests.

7 0
2 years ago
George walks in and wants to send multiple back to back transactions to the
Gala2k [10]

The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

The sender i.e. Geroge who not even know the receiver that sells the homeopathy remedies online so this could raise a few issues but it is not to be considered very serious for red-flagged:

  • Since e-commerce arises each and every time that lies between non-known parties online.

This is due to the dirt chape that could make it suspicious also they don't know each other so this should be considered red-flagged.

  • The instructions with regard to the payment do not represent any signal of reliability and truthfulness so might me the receiver is trustworthy and genuine.
  • In the case when the homeopathy remedies do not have the licensing and permissions so it would become questionable.

No one could suggest the specific brand of homeopathy as it becomes nonprofessional and non-appropriate, so the last option is not be considered.

Therefore we can conclude that The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

Learn more about homeopathy here: brainly.com/question/7460064

8 0
1 year ago
Read 2 more answers
Habib withdrew $100,000 from his bank account paying 5% interest to purchase equipment for his construction company. If Habib ea
daser333 [38]

Answer:

$5,000

Explanation:

Given that,

Accounting profit = $10,000

Interest rate = 5%

Amount withdraw = $100,000

The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.

Accounting profit is determined by subtracting explicit costs from the total revenue.

Accounting profit = Total revenue - Explicit costs

Economic profit:

= (Total revenue - Explicit costs) - Implicit costs

= $10,000 - (Interest income)

= $10,000 - (5% × $100,000)

= $10,000 - $5,000

= $5,000

6 0
2 years ago
During the year,Liptom Company made an entry to write off a $4,000 uncollectible account. Before this entry was made, the balanc
Andru [333]

Answer:

$55,500

Explanation:

The computation of the net realizable value after the write off entry is show below:

The credit balance in allowance with terms to bad debts is

= $4,500 - $4,000

= $500

Now the net realizable value is

= ($60,000 - $4,000) - ($4,500 - $4,000)

= $56,000 - $500

= $55,500

Hence, the same is to be considered

7 0
2 years ago
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