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On January 1, Jim Shorts Corporation issued $300 million face value bonds for $ 580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report: Multiple Choice An addition to net income of $ 1,500,000. An investing activity of $580 million. A financing activity of $300 million. A deduction from net income of $1,500,000.

On January 1, Jim Shorts Corporation issued $300 million face value bonds for $ 580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report: Multiple Choice An addition to net income of $ 1,500,000. An investing activity of $580 million. A financing activity of $300 million. A deduction from net income of $1,500,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Jim Shorts Corporation issued $300 million face value bonds for $ 580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report: Multiple Choice An addition to net income of $ 1,500,000. An investing activity of $580 million. A financing activity of $300 million. A deduction from net income of $1,500,000.
Transcribed Image Text:On January 1, Jim Shorts Corporation issued $300 million face value bonds for $ 580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report: Multiple Choice An addition to net income of $ 1,500,000. An investing activity of $580 million. A financing activity of $300 million. A deduction from net income of $1,500,000.
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