Sheridan Company purchased $1250000 of 8%, 5-year bonds from Pina, Inc. on January 1, 2025, with interest payable on July 1 and January 1. The bonds sold for $1299896 at an effective interest rate of 7%. Using the effective interest method, Sheridan decreased the Available - for - Sale Debt Securities account for the Pina bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of $4748 and $4892, respectively. At December 31, 2025, the fair value of the Pina bonds was $1317000. What should Sheridan report as other comprehensive income and as a separate component of stockholders' equity (assuming that this is Sheridan's first investment in available - for - sale debt securities)? Select answer from the options below $0 $26744 $9640 $17104
Sheridan Company purchased $1250000 of 8%, 5-year bonds from Pina, Inc. on January 1, 2025, with interest payable on July 1 and January 1. The bonds sold for $1299896 at an effective interest rate of 7%. Using the effective interest method, Sheridan decreased the Available - for - Sale Debt Securities account for the Pina bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of $4748 and $4892, respectively. At December 31, 2025, the fair value of the Pina bonds was $1317000. What should Sheridan report as other comprehensive income and as a separate component of stockholders' equity (assuming that this is Sheridan's first investment in available - for - sale debt securities)? Select answer from the options below $0 $26744 $9640 $17104
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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![Sheridan Company purchased $1250000 of 8 %, 5-year bonds from Pina, Inc. on January
1, 2025, with interest payable on July 1 and January 1. The bonds sold for $1299896 at an
effective interest rate of 7%. Using the effective interest method, Sheridan decreased the
Available for - Sale Debt Securities account for the Pina bonds on July 1, 2025 and December
31, 2025 by the amortized premiums of $4748 and $4892, respectively. At December
31, 2025, the fair value of the Pina bonds was $1317000. What should Sheridan report as
other comprehensive income and as a separate component of stockholders' equity (assuming
that this is Sheridan's first investment in available - for - sale debt securities)? Select answer
from the options below $0 $26744 $9640 $17104](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e688dda-359f-4abf-aafa-d2eb8d0475c5%2Fe0d05636-9831-4b84-b13b-336c77e2c489%2Fjam7ua8_processed.png&w=3840&q=75)
Transcribed Image Text:Sheridan Company purchased $1250000 of 8 %, 5-year bonds from Pina, Inc. on January
1, 2025, with interest payable on July 1 and January 1. The bonds sold for $1299896 at an
effective interest rate of 7%. Using the effective interest method, Sheridan decreased the
Available for - Sale Debt Securities account for the Pina bonds on July 1, 2025 and December
31, 2025 by the amortized premiums of $4748 and $4892, respectively. At December
31, 2025, the fair value of the Pina bonds was $1317000. What should Sheridan report as
other comprehensive income and as a separate component of stockholders' equity (assuming
that this is Sheridan's first investment in available - for - sale debt securities)? Select answer
from the options below $0 $26744 $9640 $17104
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