1. Certain debt instruments were issued at the following scenario:InstrumentLenders at originationTreasury notesI.14Investment certificateII.20Certificate of depositII.30IV.Investment certificate18The interest income from which of the foregoing is subject to final tax?a. I, II, III and IVb. I, II and IVc. II and IVd. IV onlyanocit

Answer: The interest income from deposits , certificates of deposits are taxable.

Certain debt instruments were issued at the following scenario: Instrument Treasury notes Investment certificate Lenders at origination 14 20 II. Certificate of deposit Investment certificate 30 II. 0.08 18

Certain debt instruments were issued at the following scenario: Instrument Treasury notes Investment certificate Lenders at origination 14 20 II. Certificate of deposit Investment certificate 30 II. 0.08 18

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: None

Q: am. 112.

A: In this scenario, the company has a fixed rate debt and enters into an interest rate swap where it…

Q: Which of the following is not classified as a financial instrument? Convertible bond C. Loan…

A: Solution: "Warranty provision" is not classified as a financial instrument.

Q: Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt secur…

A: The percentage of bonds issued by a certain class of issuers, such as governments or businesses,…

Q: 3 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 121 02 Foreign Currency Receivables XXX 120 02…

A: Foreign Currency transactions must be recorded at the exchange rate prevailing at the time of…

Q: Central Bank of Oman issues the Government Development bonds to finance

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to accounting for bonds and…

A: International Financial Reporting Standards: They are commonly known as IFRS. It is a set of…

Q: Which of the following specific features and material risks of a bond product should be disclosed…

A: Several disclosure requirements of a bond product prior to or at the time of transaction in Hong…

Q: Interest revenue for debt investments at fair value through other comprehensive income

A: IFRS 9 - Financial instruments deals with the calculation of interest income on debt investments.

Q: Bond premium should be reported in the statement of financial position A. along with other premium…

A: A premium on bonds means investors are satisfied with a rate of interest lower than the rate stated…

Q: Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the…

A: the following loan commitments are within the scope of IPFRS 9:: Loan commitments that can be…

Q: E Calculator The entry to record the amortization of a premium on bonds payable on an interest…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Journalize the above transactions, including the adjusting entry for the accrual of interest on…

A: Journal entry is the first stage of accounting process. Journal entry used to record business…

Q: Define each of the following terms: h. Eurodollar; Eurobond; international bond; foreign bond

A: EurodollarIt is a bond whose denomination is in terms of the US dollar that is held in Europe or any…

Q: Interest revenue on bonds is reported as Group of answer choices an addition to the investment in…

A: Interest revenue on bonds is non operating revenue. So it is not operating income.

Q: What formula is used to compute the amount of the cash interest payment on Bonds Payable? Multiple…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: Interest revenue on bonds is reported Question 24 options: as part of other income as part of…

A: The bonds are the financial instruments for the business that are issued to raise money from the…

Q: 2. This type of investment is considered a debt instrument. A Stocks ® Bonds © Mutual funds O…

A: There are two type capitals equity and debt

Q: Perpetual debt instruments a. Are compound financial instruments b. Are derivative financial…

A: Perpetual debt instruments seem to be debt funds that do not have an expiration date. The issuer…

Q: Bonds which are collateralized by specific assets in the event the borrowing company defaults on…

A: Bonds are a form of liability for the business. These can be issued for short term or long term.…

Q: describe the fi nancial statement presentation of and disclosures relating to debt

A: A single line component of the cumulative amount of a long-term firm's liability due after one year…

Q: Interest revenue for debt investments at fair value through other comprehensive income is computed…

A: When the debt instruments are bought at off market terms, such instruments are measured at their…

Q: A debt service fund is used to account for financial resources set aside for the purpose of making…

A: A debt service fund is a type of governmental fund that is used to account for the accumulation of…

Q: At what amount should trading, available-for-sale, andheld-to-maturity debt securities be reported…

Q: 3. What is the correct order from short maturity to long maturity? a) Treasury bill - Treasury note…

A: Treasury instruments are issued at a deep discount and can range from a maturity of few days to few…

Q: Question Content Area The journal entry a company makes for the payment of interest, interest…

A: The objective of the question is to identify the correct journal entry for the payment of interest,…

Q: Under PFRS 9, bond investments held for collection of contractual cash flows are measured at

A: As per PFRS - 9, all financial instruments are initially measured at fair value adjusted by the…

Q: Money market securities include: commercial paper Treasury bills negotiable certificates of deposit…

A: The money market is a part of the stock market but it is on a very small level. The wholesale market…

Q: With reference to a lender will loan a certain amount of funds to an entity in need of funds using…

A: Collateral is defined as the pledge of the borrowers in a lending agreement of the particular…

Q: Select the term that best fits each of the following definitions and descriptions.

A: Bonds are the liability of the company which they have to pay after the expiry of the bond’s…

Q: What is the revolving credit arrangements in the exposure draft, Topic 470?

A: The FASB issued an Exposure draft titled debt (470) which aims at simplifying the classification of…

Q: Desribe the international versions of bonds in brief. Focus clearly on the differences between them…

A: International bond A non-domestic entity issues an international bond in a country. In most cases,…

Q: 15. This refers to a bond issuance process wherein the investment bank offers to sell the bond issue…

A: Underwriting is that the method by that an establishment or person bear the financial risk…

Q: Which of the following would NOT be included in the journal entry to show the conversion of bonds…

A: Journal entry: A journal entry is a documentation of a business's financial activities kept in its…

Q: Chapter 10- Bond Vocabulary - Match each of the following terms with appropriate definitions: 1200…

A: A bond is a type of loan where an investor lends money to a borrower, typically a corporation or…

Q: he journal entry a company makes for the is a. debit Cash and Discount on Bonds Payable, cred Ob.…

A: When the contract rate is less than the Market rate , the bonds are issued at discount.

Q: 12 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 102 02 BANK CURRENCY DTH 62.000 121 02 CERTIFICATES…

A: The FX Receivables experience fluctuations in value as the currency changes as per the shift in the…

Q: define \ Repatriation of earnings; political risk Eurodollar; Eurobond; international…

A: 1) Repatriation of Earnings : Repatriation is the bringing of earnings from foreign country to Home…

Q: Bonds that are issued on the general creditworthiness of the company are: Bonds that are issued on…

A: Bond is a borrowing security that is issued by the company to raise funds from the market by making…

Q: Match the following money market securities with their issuers. Securities Issuers a.…

A: Money market securities are short term debt instruments which are issued for a period of less than a…

Q: 1. How are the bonds issued, what is the appropriate journal entry? 2. Provide example for…

A: The two theory questions on bonds have been answered hereunder : Bonds are the financial instruments…

Q: _____________ is one of the financial market instruments which grants a short-term loan that is…

A: Share acceptance ,repurchase acceptance and bond acceptance are not market instruments. Bankers…

Q: Collateralized Debt Obligations (CDO’s) are pools of__ a) all tranches of MBS b) the mezzanine and…

A: Collaterized Debt obligations are very complex financial products that are secured by group of…

Question

100%

1. Certain debt instruments were issued at the following scenario:
Instrument
Lenders at origination
Treasury notes
I.
14
Investment certificate
II.
20
Certificate of deposit
II.
30
IV.
Investment certificate
18
The interest income from which of the foregoing is subject to final tax?
a. I, II, III and IV
b. I, II and IV
c. II and IV
d. IV only
anocit

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

t6
Question 1: Discuss the differences between Eurobond and foreign bond with examples.Plz explain it properly
Question Content Area The journal entry a company makes for the issuance of bonds when the contract rate is less than the market rate would be a. debit Cash, credit Premium on Bonds Payable and Bonds Payable b. debit Cash, credit Bonds Payable c. debit Cash and Discount on Bonds Payable, credit Bonds Payable d. debit Bonds Payable, credit Cash
In which of the following withdrawal of funds by a person from a bank can be made on maturity date as agreed with the bank a. Loans b. Fixed Deposit c. Current deposit d. Saving Deposit
A bond backed by tangible (real) assets is known as a O a. debenture O b. U.S. government bond c. general obligation municipal bond d. mortgage bond e. subordinated debenture
question 53
What is the increasing-rate debt in the exposure draft, Topic 470?
Which of the following would NOT be included in the journal entry to show the conversion of bonds payable? ( NIE 13) A credit to gain on conversion credit to additional paid in capital debit to bond premium debit to bonds payable
On a balance sheet, what valuation must be reported for debt securities classified as available-for-sale?
Which of the following are money market securities?I. Jumbo CDsII. Short-term municipal debtIII. U.S. Treasury billsIV. Commercial paper A. I and IV only B. II and III only C. I, II, and IV only D. II, III, and IV only E. I, II, III, and IV
T.
What is the term debt that addressed in the exposure draft, Topic 470?