Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium. If the bonds purchased by S were at par or premium.

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Answer 1

Question

Chapter 8, Problem 8.4C

a

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

If the bonds purchased by S were at par or premium.

b

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

if the subsidiary bonds were originally sold at premium or discount, will annual interest payment received by S is more or less than interest expense. How is the difference between interest income recorded by S and how interest expense is recorded by subsidiary.

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Chapter 21 Homework i Saved You received partial credit in the previous attempt. 00 8 Exercise 21-3 (Algo) Preparing flexible budgets LO P1 1.25 points 04:49:00 Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget eBook + Hint Ask Print Sales (12,000 units x $216 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries. Depreciation-Office equipment Insurance Office rent Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 2,592,000 288,000 528,000 336,000 88,000 84,000 192,000 138,000 108,000 78,000 88,000 664,000 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. 5 References Mc Graw Hill Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare flexible budget at activity levels of 10,000 units and 14,000 units. Sales Variable costs Direct materials Direct labor Indirect…

Answer 2

Question

Chapter 8, Problem 8.4C

a

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

If the bonds purchased by S were at par or premium.

b

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

if the subsidiary bonds were originally sold at premium or discount, will annual interest payment received by S is more or less than interest expense. How is the difference between interest income recorded by S and how interest expense is recorded by subsidiary.

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Answer 3

Question

Chapter 8, Problem 8.4C

a

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

If the bonds purchased by S were at par or premium.

b

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

if the subsidiary bonds were originally sold at premium or discount, will annual interest payment received by S is more or less than interest expense. How is the difference between interest income recorded by S and how interest expense is recorded by subsidiary.

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Answer 4

Question

Chapter 8, Problem 8.4C

a

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

If the bonds purchased by S were at par or premium.

b

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

if the subsidiary bonds were originally sold at premium or discount, will annual interest payment received by S is more or less than interest expense. How is the difference between interest income recorded by S and how interest expense is recorded by subsidiary.

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Answer 5

Chapter 8, Problem 8.4C

a

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

If the bonds purchased by S were at par or premium.

b

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

if the subsidiary bonds were originally sold at premium or discount, will annual interest payment received by S is more or less than interest expense. How is the difference between interest income recorded by S and how interest expense is recorded by subsidiary.

Answer 6

Chapter 8, Problem 8.4C

a

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

If the bonds purchased by S were at par or premium.

Answer 7

Chapter 8, Problem 8.4C

a

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

If the bonds purchased by S were at par or premium.

Answer 8

b

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

if the subsidiary bonds were originally sold at premium or discount, will annual interest payment received by S is more or less than interest expense. How is the difference between interest income recorded by S and how interest expense is recorded by subsidiary.

Answer 9

b

To determine

Interest income and expense: When intercompany sale of bonds takes place between affiliates, all effects of intercompany indebtedness must be eliminated for the purpose of consolidated financial statements, as a company cannot report an investment in its own bonds or bond liability to itself. When the nominal interest rate is different from yield demanded, the bond is sold at discount or premium. In this case, the amount of bond interest income or expense recorded will not be equal, in this case, the interest receipt and payment is adjusted for the amortization of the discount or premium.

if the subsidiary bonds were originally sold at premium or discount, will annual interest payment received by S is more or less than interest expense. How is the difference between interest income recorded by S and how interest expense is recorded by subsidiary.

Answer 10

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Answer 11

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Answer 13

Ch. 8 - Prob. 8.1Q Ch. 8 - What is meant by a constructive bond retirement in...Ch. 8 - Prob. 8.3Q Ch. 8 - Prob. 8.4Q Ch. 8 - When a parent company sells land to a subsidiary...Ch. 8 - Prob. 8.7Q Ch. 8 - Prob. 8.8Q Ch. 8 - Prob. 8.9Q Ch. 8 - Prob. 8.10Q Ch. 8 - Prob. 8.11Q

Solution Summary: The author explains that when intercompany sale of bonds takes place between affiliates, all effects of indebtedness must be eliminated for the purpose of consolidated financial statements.

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