subject
Business, 20.09.2019 19:30 jaymoria16

Tanner-unf corporation acquired as a long-term investment $160 million of 5.0% bonds, dated july 1, on july 1, 2018. company management has the positive intent and ability to hold the bonds until maturity. the market interest rate (yield) was 8% for bonds of similar risk and maturity. tanner-unf paid $130.0 million for the bonds. the company will receive interest semiannually on june 30 and december 31. as a result of changing market conditions, the fair value of the bonds at december 31, 2018, was $140.0 million. required: 1. & 2. prepare the journal entry to record tanner-unf’s investment in the bonds on july 1, 2018 and interest on december 31, 2018, at the effective (market) rate. 3. at what amount will tanner-unf report its investment in the december 31, 2018, balance sheet? 4. suppose moody’s bond rating agency downgraded the risk rating of the bonds motivating tanner-unf to sell the investment on january 2, 2019, for $110.0 million. prepare the journal entry to record the sale.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 14:40
Easel manufacturing budgeted fixed overhead costs of $ 1.50 per unit at an anticipated production level of 1 comma 350 units. in july easel incurred actual fixed overhead costs of $ 4 comma 700 and actually produced 1 comma 300 units. what is easel's fixed overhead budget variance for july?
Answers: 2
question
Business, 21.06.2019 21:30
What are the main advantages and disadvantages of organizing a firm as a c corporation? the advantages are: (select all the choices that apply.) a. there is no limit on the number of owners a c corporation may have, thus allowing the corporation to raise substantial amounts of capital. b. the life of the business can continue beyond the death of any of the owners. c. the corporation can use the assets of the owners to pay for corporate liabilities. this attracts smaller investors to the corporation. d. the liability of the owners is limited to the amount of their investment in the firm. the disadvantages are: (select all the choices that apply.) a. income to a c corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. b. the life of the business usually ends with the death of any of the owners. c. the c corporation is more complicated and more expensive to set up than other business entities. d. corporate liabilities can be passed on to the share
Answers: 1
question
Business, 22.06.2019 01:20
As a project manager for a large construction company, shaun decided to make the performance appraisal process as painless as possible for his crew. he spent a considerable amount of time creating performance standards he felt were reasonable, and after six months' time, he scheduled individual appointments with each worker to discuss strengths and weaknesses and areas that needed improvement according to the standards he privately set. some employees were sent to vestibule training, and one even got a promotion with additional compensation. what did he fail to do correctly
Answers: 2
question
Business, 22.06.2019 14:20
In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5
Answers: 1
You know the right answer?
Tanner-unf corporation acquired as a long-term investment $160 million of 5.0% bonds, dated july 1,...
Questions
question
Mathematics, 04.06.2020 01:57
question
Computers and Technology, 04.06.2020 01:58