subject
Business, 02.11.2019 03:31 Shayleechase

On january 1, year 2, southern corporation received $107,720 for a $100,000 face amount, 12% bond, a price that yields 10%. the bonds pay interest semiannually. southern elects the fair value option for valuing its financial liabilities. on december 31, year 2, the fair value of the bond is determined to be $106,460. southern recognized interest expense of $12,000 in its year 2 income statement. what was the gain or loss recognized on the year 2 income statement to report this bond at fair value?
a) $12,000 lossb) $1,260 gainc) $13,260 lossd) $6,460 gain

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 16:00
Match each feature with the savings account type
Answers: 3
question
Business, 21.06.2019 20:30
marketing strategies should be established before marketing objectives are decided. t/f
Answers: 1
question
Business, 22.06.2019 11:00
Zoe would like to be able to save for night courses at the local college. which of these would be a good way for zoe to make more money available for savings without dramatically changing her budget? economĂ­a
Answers: 2
question
Business, 22.06.2019 21:40
Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.
Answers: 3
You know the right answer?
On january 1, year 2, southern corporation received $107,720 for a $100,000 face amount, 12% bond, a...
Questions
question
Mathematics, 03.05.2021 21:40
question
Social Studies, 03.05.2021 21:40
question
Mathematics, 03.05.2021 21:40
question
Mathematics, 03.05.2021 21:40