ADVANCED ACCOUNTING
ADVANCED ACCOUNTING
12th Edition
ISBN: 9780357671221
Author: FISCHER
Publisher: CENGAGE L
Question
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Chapter 9.M, Problem 3E
To determine

Concept Introduction:

Interest Expense:

Interest Expense is any type of interest that is incurred debt like loans, bond etc. Interest factor plays a very crucial role for any organization.

Carrying value:

Carrying value is referred to an asset’s original cost. From that any depreciation, amortization and asset impairment costs are subtracted in order to ascertain the carrying value of the asset.

Unrealized Gain:

An unrealized gain is basically realized when the prices of the stock are usually higher than the original price. Unrealized profit is advantageous for any organization.

Requirement 1

To calculate:

Net Interest Income needs to be calculated for June 30 and December 31,2013 .

To determine

Concept Introduction:

Interest Expense:

Interest Expense is any type of interest that is incurred debt like loans, bond etc. Interest factor plays a very crucial role for any organization.

Carrying value:

Carrying value is referred to an asset’s original cost. From that any depreciation, amortization and asset impairment costs are subtracted in order to ascertain the carrying value of the asset.

Unrealized Gain:

An unrealized gain is basically realized when the prices of the stock are usually higher than the original price. Unrealized profit is advantageous for any organization.

Requirement 2

To calculate:

Carrying Value needs to be calculated for June 30 and December 31,2013 .

To determine

Concept Introduction:

Interest Expense:

Interest Expense is any type of interest that is incurred debt like loans, bond etc. Interest factor plays a very crucial role for any organization.

Carrying value:

Carrying value is referred to an asset’s original cost. From that any depreciation, amortization and asset impairment costs are subtracted in order to ascertain the carrying value of the asset.

Unrealized Gain:

An unrealized gain is basically realized when the prices of the stock are usually higher than the original price. Unrealized profit is advantageous for any organization.

Requirement 3

To calculate:

Net Realized gain or Loss on Swap needs to be calculated for June 30 and December 31, 2013.

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