Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond. International Financial Reporting Standards They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level. Generally Accepted Accounting Principles They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB). To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

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Answer 1

Question

Chapter 14, Problem 14.17P

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

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Assume that TDW Corporation (calendar-year-end) has 2024 taxable income of $952,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Machinery Computer equipment Furniture Total Placed in Service September 12 February 10 April 2 Basis $ 2,270,250 263,325 880,425 $ 3,414,000 b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2024 on the assets it placed in service in 2024, assuming no bonus depreciation? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Maximum total depreciation deduction (including §179 expense)

Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Date Placed in Asset Machinery Service October 25 Original Basis $ 120,000 Computer equipment February 3 47,500 Used delivery truck* August 17 Furniture April 22 60,500 212,500 The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation and elects out of §179 expense?

Lina purchased a new car for use in her business during 2024. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2024 and 2025 (Lina doesn't want to take bonus depreciation for 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) a. The vehicle cost $40,000, and business use is 100 percent (ignore §179 expense). Year Depreciation deduction 2024 2025

Answer 2

Question

Chapter 14, Problem 14.17P

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 14, Problem 14.17P

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.17P

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.17P

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Answer 6

Chapter 14, Problem 14.17P

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

Answer 7

Chapter 14, Problem 14.17P

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

Answer 8

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

Answer 9

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

Answer 10

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

Answer 11

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

Answer 12

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Answer 13

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - On January 1, 2018, Brandon Electronics issued 85...Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8Q Ch. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10Q

Solution Summary: The author explains that bonds are a kind of interest bearing notes payable, usually issued by companies, universities, and governmental organizations.

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

To prepare: The journal entry to record the call of the bonds under IFRS.

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Chapter 14 Solutions