Crane Company purchased $2400000 of 9%, 5-year bonds from Swifty, Inc. on January 1, 2025 with interest payable on July 1 and January 1. The bonds sold for $2499792 at an effective interest rate of 8%. Using the effective-interest method, Crane decreased the Available-for-Sale Debt Securities account for the Swifty bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of $9420 and $9780, respectively. At December 31, 2025, the fair value of the Swifty bonds was $2580000. What should Crane report as other comprehensive income and as a separate component of stockholders' equity? $80208. $99408. O $19200. No entry should be made.
Crane Company purchased $2400000 of 9%, 5-year bonds from Swifty, Inc. on January 1, 2025 with interest payable on July 1 and January 1. The bonds sold for $2499792 at an effective interest rate of 8%. Using the effective-interest method, Crane decreased the Available-for-Sale Debt Securities account for the Swifty bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of $9420 and $9780, respectively. At December 31, 2025, the fair value of the Swifty bonds was $2580000. What should Crane report as other comprehensive income and as a separate component of stockholders' equity? $80208. $99408. O $19200. No entry should be made.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: accounting
![Crane Company purchased $2400000 of 9%, 5-year bonds from Swifty, Inc. on January 1, 2025 with interest payable on July 1 and
January 1. The bonds sold for $2499792 at an effective interest rate of 8%. Using the effective-interest method, Crane decreased the
Available-for-Sale Debt Securities account for the Swifty bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of
$9420 and $9780, respectively.
At December 31, 2025, the fair value of the Swifty bonds was $2580000. What should Crane report as other comprehensive income
and as a separate component of stockholders' equity?
$80208.
$99408.
O $19200.
No entry should be made.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F28c7ce65-1129-4a9a-9634-f6eb8b5bce94%2F2amobzb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Crane Company purchased $2400000 of 9%, 5-year bonds from Swifty, Inc. on January 1, 2025 with interest payable on July 1 and
January 1. The bonds sold for $2499792 at an effective interest rate of 8%. Using the effective-interest method, Crane decreased the
Available-for-Sale Debt Securities account for the Swifty bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of
$9420 and $9780, respectively.
At December 31, 2025, the fair value of the Swifty bonds was $2580000. What should Crane report as other comprehensive income
and as a separate component of stockholders' equity?
$80208.
$99408.
O $19200.
No entry should be made.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education