25. In accounting for debt investments that are classified as FV throughprofit or loss:O a. any unrealized gain (loss) is reported as part of equity.b. a premium is reported separately.O c. interest income is based on nominal interest.O d. interest income is based on effective interest.

25. In accounting for debt investments that are classified as FV through profit or loss: O a. any unrealized gain (loss) is reported as part of equity. O b. a premium is reported separately. O c. interest income is based on nominal interest. Od. interest income is based on effective interest.

25. In accounting for debt investments that are classified as FV through profit or loss: O a. any unrealized gain (loss) is reported as part of equity. O b. a premium is reported separately. O c. interest income is based on nominal interest. Od. interest income is based on effective interest.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 4MCQ: What best describes the discount on bonds payable account? A liability An asset A contra liability...

See similar textbooks

Related questions

Q: Warren Company has two divisions with the following results: Sales revenue Ashland $ 447,000 $…

A: Solution:- a)Calculation of return on investments as follows under:-

Q: Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Direct Material Direct Labor Factory Overhead ??? Job #1 Job # 2 P 38,400 ??? P54,000 60,000 ??? ???…

A: a). Calculation of factory overhead in Job no. 1 Factory over head = 140% of direct labor cost =…

Q: Mary and l id costs for a solar na

A: Today due to rising pollution and environment hazards…

Q: On 1 July 2021 Collaroy Ltd acquired the following assets and liabilities from Bilgola Ltd Carrying…

A: In case one company overtake the assets and liabilities of another company , then accounting for…

Q: Information on XXX Company's direct materials costs is as follows: 20,000 P40,000 P2.10 Actual units…

A: Actual price per unit = P40,000 / 20,000 units = P2.00

Q: PLEASE ANSWER ALL QUESTIONS: 1.What is Mr. Maxwell’s apparent motivation for the change in the way…

A: Maxwells apparent motivation Firstly, when the company deducted funds from the employee contribution…

Q: Question 30: Match each form to its purpose. SS-4 W-4 SS-5 1-9 DROP HERE DROP HERE DROP HERE DROP…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The details of the accounts receivable of Dolor Corporation as December 31, 2022 shows the…

A: Cash Received from Financing of Receivables: It is the cash or money that the firm will receive from…

Q: The cash account of the Siopao Corporation as of December 31, 2022 consists of the following: On…

A: Cash is one of the important current asset being held by the business. It consists of cash in hand,…

Q: on December 31, 20X1, the Stockholders’ Equity section of Mercedes Corporation was as follows:…

A: The dividend is paid to shareholders from the retained earnings of the business.

Q: a. Calculate and interprete the following ratios Receivables days Payables days Inventory days

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: ABC Corporation is considering a business opportunity that would require an investment of P1,800,000…

A: Bailout Payback Method Investment= P1,800,000 Year Net Cash Flow Salvage Value Cumulative Payback…

Q: or ordered the collection of P1.00 "escalator tax" every time a person rides any of the high tech…

A: The answer has been mentioned below.

Q: Problem 20-4 (ATCPA Adapted) Koral Company incurred the following costs during the current year:…

A: Research and Development (R&D) is a process by which a company obtains new knowledge and uses it…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Under LIFO method, using perpetual inventory system, Cost of goods sold and value of ending…

Q: Thuy worked as the assistant manager at Burger Crown through August 2021 and received wages of…

A: The social security taxes are the payroll taxes required to be paid by the employers and employees.…

Q: Crane Corp. did some further research and found one other possible machine that would produce the…

A: The net present value (NPV) method is used to compute the present value of all future cash flows…

Q: Question 11: Which statement regarding the calculation of taxes is accurate? Answer: А. O For…

A: The income on which taxes are calculated and further deducted is the gross pay. The gross pay is…

Q: 7. Job order costing manufactures heterogenous products.

A: Costing Methods: Costing methods are the different practices specified in the Cost Accounting to…

Q: BB Corp.’s accounts receivable subsidiary ledger shows the following information: Customer Account…

A: There are 2 methods for estimating bad debt expense: Percentage of sales method Percentage of…

Q: Cala Manufacturing purchases land for $327,000 as part of its plans to build a new plant. The…

A: The cost of an asset includes all the cost that makes the assets ready to use. So the cost of tear…

Q: According to the original tipping page www.tipping.org it is appropriate to tip waiters and…

A: A. Tax on the Leesburg's dinner = Leesburg's dinner cost before tax × tax rate =$41.75×3% = $1.2525…

Q: $413,800 152,100 42,680 85,000 $693,580 tunity to submit a bid for 2,000 batteries to be delivered…

A: The unit cost that Forever Ready Co should not go is the cost of producing the batteries. The unit…

Q: On January 2, 2021, Tripod Company receives a government loan of P2,000,000 paying a coupon interest…

A: As per standard accounting practices a revenue is recognized when it is earned and…

Q: Jaffe Blackout Power Company constructed a new power plant to supply energy to the Castle Electrical…

A: One of the source of raising the funds is obtaining the loans from the financial institutions. The…

Q: During 2017, Blevert Co. introduced a new line of machines that carry a three-year warranty against…

A: Answer is option C) $212,000

Q: Using the following accounts in Table (1) below, prepare a Balance Sheet for Bali Tour Sdn.Bhd. as…

A: The balance sheet's of the business organizations helps the stakeholders in analyzing the company's…

Q: The voucher system of control: Multiple Choice Establishes procedures for receiving checks for the…

A: A voucher system is a technique of approving the distribution of money. A voucher is completed,…

Q: On January 1, 2020, Dulcinea Company enters a ten-year noncancelable lease for equipment having an…

A: It is finance lease Because use ful life of the asset and non cancelable lease same. Calculation…

Q: How much should Dolly Company report goodwill as of December 31, 2022?

A: Goodwill is the amount of money which has been paid by the acquiring company in excess of the net…

Q: An auditor reads management's commentary included in a county's comprehensive annual financial…

A: GIVEN An auditor reads management's commentary included in a county's comprehensive annual…

Q: The Weber Company purchased a mining site for $580,128 on July 1. The company expects to mine ore…

A: Given, Cost of machone = $580,128 Total tons = 85,978 Depletion expense per ton = (Cost - Salvage…

Q: On June 30, Collins Management Company purchased land for $720,000 and a building for $1,080,000,…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: dt hours on average, each student takes per quarter A random sample bility and assumed that the…

A: The answer has been mentioned below.

Q: Shipping costs for fish that is ordered by the restaurant are a mixed cost with variable and fixed…

A: Formula: Variable cost per tons= (Highest activity cost - Lowest activity cost) / (Highest activity…

Q: What increases a partner's interest in a partnership?

A: A partnership is a legally binding agreement among two or more persons to manage & operate a…

Q: a) An entity has to maintain its records property so that the business can run efficiently and that…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Measures of liquidity, solvency, and profitability answer 10,11,12 The comparative financial…

A: The ratio analysis helps to analyse the financial statements of the business with various elements…

Q: The following information is from a new business. Comment on the year-to-year changes in the…

A: Accounting equation of the business has three main elements. These are Assets, Liabilities and…

Q: Delafield Corporation has a single class of common stock and a single class of cumulative preferred…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: 27. How much is over or under-applied factory overhead? 28. How much is the ending work in process…

A: 27. Actual factory overhead= 18,40,000 factory overhead applied= 19,20,000 Factory overhead…

Q: 26. Assume an investor purchases bonds at a premium the bonds are to be 1 held as a long-term…

A: Solution Concept When the stated interest rate is less than the market rate of interest , the bond…

Q: At the end of the day, the cash register tape shows $1,380 in cash sales but the count of cash in…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: Nangamso spends R2000 monthly on Product A when its price is R2 and continues to spend R2000 monthly…

A: Price Elasticity of Demand = Percentage change in Demand/ Percentage change in price rise

Q: On January 1, 2022, AA Company received a 5%, P10,000,000, note collectible in installment plus…

A: Given, Value of note= P10,000,000 Rate of interest= 5%

Q: Cash Dividends on Common Stock

A: Shares purchased as Treasury stock is not outstanding. So , no Dividend is declared on shares…

Q: hanuracturing equipment to make a new garden tool. The gar $48 each. The new manufacturing equipment…

A: Annual Revenue = $446,400(9300 units *$48) Selling expenses = $22,320 (5% *446,400) Cost to…

Q: A capital budget will reflect expenses to re-paint the guest room corridors, this is done annually…

A: Solution Concept Capital budget is the budget that incorporates and reflect the capital expenditures…

Q: In 2020 ABC Co. decided to change to the FIFO method for inventory. The Cost of Goods Sold in 1919…

A: In the year 2019. Under LIFO, The cost of goods sold is $300,000 Under FIFO The cost of goods sold…

Question

25. In accounting for debt investments that are classified as FV through
profit or loss:
O a. any unrealized gain (loss) is reported as part of equity.
b. a premium is reported separately.
O c. interest income is based on nominal interest.
O d. interest income is based on effective interest.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? A. Interest calculated using the effective interest method. B. All of these. C. Changes in fair value D. Impairment gains and losses
39 In accounting for debt investments that are classified as FV through profit or loss: Group of answer choices interest income is based on nominal interest. any unrealized gain (loss) is reported as part of equity. a premium is reported separately. interest income is based on effective interest.
15. The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n) deduction from net income. investing activity. addition to net income. financing activity.
2. Which of the following correctly matches the classification of the debt investment with its initial measurement? Classification Initial measurement A. Fair value through other comprehensive income B. Amortized cost C. Fair value through profit or loss Fair value Fair value plus transaction costs Fair value minus transaction costs D. None of the above
5. The premium on bonds payable account is shown on the statement of financial position as a.a contra asset. b.a subtraction from a long-term liability. c.an addition to a long-term liability. d.a reduction of an expense.
Interest revenue for debt investments at fair value through other comprehensive income is computed based on the instruments’ a. face value using the effective interest rate. b. face value using the nominal interest rate. c. carrying amount using the effective interest rate. d. carrying amount using the nominal interest rate.
Which item below is not a current liability? Select one: O O a. Unearned revenue b. Trade accounts payable c. cash dividends d. The currently maturing portion of long-term debt
Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet Recognized initially as a current liability on the balance sheet Amortized over the term of the related debt liability Expensed on the income statement when the transaction occurs Which one is the correct answer please?
what of the following is the correct calculation for interest cover : a- total debt / interest payable b- interest payable / total debt c- operating profit / interest payable d- interest payable / operating profit
1. According to PFRS 9, The amortized cost of a financial instrument is calculated using. A. The effective interest method. B. The straight line method C. A or b D. Choice a however, the straight line method can be used in some circumstances. 2. The amortization of a discount on an investment in bonds measured at amortized cost A. Increases the carrying amount of the investment B. Is the excess of interest income over interest received or receivable. C. Is recorded directly to the invesment account D. All of these 3. Which of the following statements is correct for an investment in term bonds that was acquired at a premium? A. The amortized cost of the bonds increases annually. B. The current and non current portions of the bonds as of the reporting date are reported separately. C. The interest income recognized each year is higher than the amount of interest received/ receivable. D. The effective interest rate is lower than the stated rate of the bonds. 4. The rate…
The return which the debt holders get is called Select one: O a. None O b. Dividend O c. Interest O d. Cost O e. Profit O f. Earnings
Investment in debt instruments classified asFA@FVTOCI recognizes which of the following in OCI? a) Changes in fair valueb) Impairment gains and lossesc) Interest calculated using the effective interestmethod.d) All of the above.