Appling Enterprises issued 9% bonds with a face amount of $510,000 on January 1, 2021. The bonds sold for $466,244 and mature in 2040 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2021 as determined by their market values in the over-the-counter market were the following:
March 31 $530,000June 30 510,000September 30 501,000December 31 508,000 General (risk-free) interest rates did not change during 2021. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Appling Enterprises issued 9% bonds with a face amount of $510,000 on January 1, 2021. The bonds sold for $466,244 and mature in 2040 (20 ...” 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
Hazard Corporation had beginning inventory of $ 28 comma 000 and ending inventory of $ 36 comma 000. Its net sales were $ 153 comma 000 and net purchases were $ 75 comma 000. Cost of goods sold for the period was $ 67 comma 000.
Answers (1)
Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control a company's operations. True/false
Answers (1)
Based on the chart, which of these statements is true? Administrative assistants and attorneys require the most training. Attorneys and construction managers are in high demand. Attorneys and teachers have the least amount of training.
Answers (2)
When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account. a. True b. False?
Answers (1)
The General Fund of a city pays all utility bills received from private companies for services provided to city agencies. It then bills other funds for their shares of the bills. On May 10, the General Fund pays an electric bill for $230,000.
Answers (1)
New Questions in Business
Sal, a production manager, knows that some of his employees are upset with a new corporate policy that eliminates a tuition reimbursement program. As a result, some of these employees are participating in soldiering.
Answers (1)
An investment project provides cash inflows of $1,275 per year for eight years. a. What is the project payback period if the initial cost is $4,100? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) b.
Answers (1)
Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals : A. 118 B. 116 C. 86 D. 85
Answers (2)
Jim, who has an internal locus of control, failed his last history test. jim is apt to respond to the failing grade by
Answers (1)
Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation Select one: a.
Answers (1)