Sandhill Company purchased $2800000 of 7%, 5-year bonds from Whispering, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $2924740 at an effective interest rate of 6%. Using the effective-interest method, Sandhill Company decreased the Available-for-Sale Debt Securities account for the Whispering, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10220 and $10580, respectively.
At February 1, 2019, Sandhill Company sold the Carlin bonds for $1316800. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2019 was $1320500. Assuming Sandhill Company has a portfolio of available-for-sale debt investments, what should Sandhill Company report as a gain (or loss) on the bonds?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Sandhill Company purchased $2800000 of 7%, 5-year bonds from Whispering, Inc. on January 1, 2021, with interest payable on July 1 and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
You contacted your stock broker this morning and placed an order to sell 300 shares of a stock that trades on the nyse. this sale will occur in the:
Answers (1)
Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average number of shares outstanding in 2017 was 50,000 shares.
Answers (1)
Ms. smith borrowed $2,000 at an 8% stated rate of interest and was to pay back the loan in 24 monthly payments. what is her effective rate of interest using the installment loan formula?
Answers (1)
The process of hiring an external provider to do the work that was previously done internally is referred to as
Answers (1)
Janus Coat Company purchased a delivery truck on June 1 for $30,000, paying $10,000 cash and signing a 6%, 2-month note for the remaining balance. The truck is expected to depreciate $6,000 each year.
Answers (1)
New Questions in Business
On January 3rd, Gates Gems returned merchandise they purchased on account from Jewelry Wholesalers in the amount of $1,450. What is the transaction to reflect this return?
Answers (1)
Do you feel ethics is critical in every business transactions? and why?
Answers (1)
An increase in the size of a tax is most likely to increase tax revenue in a market with elastic demand and elastic supply. a) elastic demand and inelastic supply. b) inelastic demand and elastic supply. c) inelastic demand and inelastic supply.
Answers (1)
Earth's Treasures Mining Co. acquired mineral rights for $93,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 16,800,000 tons were mined and sold. a. Determine the depletion rate.
Answers (1)
Using your resources wisely means using the smallest amount of resources to produce the greatest amount of output. True / False.
Answers (1)