On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect method, Jim Shorts Corporation should report: O that $1.5 million to be added to net income O An investing activity of $580 million. O A financing activity of $300 million. O that $1.5 million to be deducted from net income
On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect method, Jim Shorts Corporation should report: O that $1.5 million to be added to net income O An investing activity of $580 million. O A financing activity of $300 million. O that $1.5 million to be deducted from net income
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 7MCQ
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![On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During
the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect
method, Jim Shorts Corporation should report:
O that $1.5 million to be added to net income
O An investing activity of $580 million.
O A financing activity of $300 million.
O that $1.5 million to be deducted from net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ee33aed-9a5b-4509-b2d5-e889c7446511%2Fdd85e58e-3fee-4a2e-8d3a-4c51c9c22fac%2Fg8bgn0i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During
the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect
method, Jim Shorts Corporation should report:
O that $1.5 million to be added to net income
O An investing activity of $580 million.
O A financing activity of $300 million.
O that $1.5 million to be deducted from net income
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