On January 1, Year 1, Peanut Limited has invested in equity and debt securitiesand recorded as "investment". Its investment portfolio for the year endedDecember 31, Year 1 is in the following table.AlmondРеcanWalnutType of securityEquityTrading$12,000$16,000EquityDebtClassificationAFSHTM$24,000$22,000$36,000$40,000CostMarket value as of Dec 31, Year 1All securities were obtained at par value. Debt security of Walnut payscoupon annually at the rate of 5%. During year 1, Peanut has received dividendfrom Almont and Pecan at the amount of $1,500 and $900, respectively.10.Determine investment account shown in Peanut's balance sheet as ofDecember 31, Year 1.11.Determine related item(s) in Peanut's income statement for the yearended December 31, Year 1.Item(s)AmountExplain/show your work?

Any investment in equity or debt by the company is initially recorded at fair value. Subsequently,…

Answered: All at par pays coupon annually at the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Akerley Hospitality reports a net income of $23,000 for the year. At the beginning of the year, Akerley had total assets of $134,000. By the end of the year, total assets had increased to $328,000. a) Calculate Akerley Hospitality's return on total assets percentage for the year to two decimal places. b) Assume that Akerley Hospitality's competitors average a 165.74% return on total assets. In comparison, is Akerley's return on total assets favorable or unfavorable?
The following data come from the financial records of Campbell Corporation for Year 3: Sales Interest expense Income tax expense Net income $ 840,000 5,100 27,500 25,000 Required How many times was interest earned in Year 3? Note: Round your answer to 2 decimal places. Interest earned times
Answer this question correctly and accurately.
Factoring Blair Finance factors the accounts of the Holder Company. All eight factored accounts are shown in the following table, with the amount factored, the date due, and the status on May 30. Indicate the amounts that Blair should have remitted to Holder as of May 30 and the dates of those remittances. Assume that the factor’s commission of 2% is deducted as part of determining the amount of the remittance.
Use the following Year 3 data: Other Selling and Administrative Expenses Other Expenses Sales Revenue Advertising and Promotion Expenses Salaries and Wages Expense Income Tax Expense Interest Expense. Required: Prepare the annual income statement for Kvass, Incorporated Revenues: KVASS, INCORPORATED Income Statement For the Year Ended December 31, Year 3 Total Revenues Expenses: $ 1,050,300 247,600 4,885,300 552,500 2,524,400 166,500 113,900
Ron Landscaping's income statement reports net income of $76,200, which includes deductions for interest expense of $12,800 and income taxes of $36,500. Its times interest earned is: Multiple Choice 9.8 times 7.0 times 3.9 times
At January 1, year 1, a sole proprietorship's assets totaled 210,000, and its liabilities amounted to 120,000. During year 1, owner investments amounted to 72,000, and owner withdrawals totaled 75,000. At December 3 I, year 1, assets totaled 270,000, and liabilities amounted to 171,000. The amount of net profit for year 1 was Select one: a. 0 b. 6,000 c. 9,000 d. 12,000
At year-end, Schultz, Inc. has cash of $11,600, current accounts receivable of $48,900, merchandise inventory of $37,900, and prepaid expenses totaling $5,100. Liabilities of $55,900 must be paid next year. What is Schultz’s acid-test ratio? 1.08 0.21 1.76 Cannot be determined from the data given</p> </div>
On June 30, Year 3, Zachary Company’s total current assets were $504,000 and its total current liabilities were $271,000. On July 1, Year 3, Zachary issued a long-term note to a bank for $39,000 cash. Requireda. Compute Zachary’s working capital before and after issuing the note.b. Compute Zachary’s current ratio before and after issuing the note
Ron Landscaping's income statement reports net income of $76,200, which includes deductions for interest expense of $12,800 and income taxes of $36,500. Its times interest earned is: Multiple Choice 9.8 times 70 times 3.9 times
On the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8, it paid in full the annual insurance invoice of $36,000, to cover the following year. The amount charged in the income statement for insurance for the year is $ ........................................
he following information is from Atlanta Corp. for the 12 months ended December 31. Sales revenue $800,000 Cost of goods sold 500,000 Selling and administrative expenses 150,000 Interest expense 5,000 Gain on sale of short-term investments 8,800 Prepare a multiple - step income statement (excluding the earnings per share disclosures) assuming a tax rate of 25 %. Report income tax expense in its own separate section.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS