A long-term investment in bonds with a cost of $800,000 was sold for $910,000 cash. (a) What
Question:
(a) What was the gain or loss on the sale?
(b) What was the effect of the transaction on cash flows?
(c) How should the transaction be reported in the statement of cash flows if cash flows from operating activities are reported by the indirect method?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
a 110000 gain b Cash inflow of 910000 c Th...View the full answer
Answered By
Joan Gakii
I'm a meticulous professional writer with over five years writing experience. My skill set includes
- Digital Content,
- Interpersonal Communication,
- Web Content and academic Writing,
- Proofreading,
- Editing,
- Project Management, and
- Public Relations.
5.00+
7+ Reviews
12+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
What determines the gain or loss on the sale of fixed assets?
-
How is the gain or loss on the sale of an operating asset calculated? Where would the Gain on Sale of Asset account appear on the financial statements?
-
A long-term investment in bonds with a cost of $60,000 was sold for $72,000 cash. (a) What was the gain or loss on the sale? (b) What was the effect of the transaction on cash flows? (c) How should...
-
John Woods' weekly gross earnings for the present week were $2,500. Woods has two exemptions. Using an $80 value for each exemption and the tax rate schedule below, what is Woods' federal income tax...
-
On January 1, 2013, Alan King decided to transfer an amount from his checking account into a savings account that later will provide $80,000 to send his son to college (four years from now). The...
-
The clamp provides pressure from several directions on the edges of the board. If the square-threaded screw has a lead h, radius r, and the coefficient of static friction is s, determine the...
-
Suppose that you make an investment that will cost $\$ 1,000$ and will pay you interest of $\$ 100$ per year for the next 20 years. Then at the end of the 20 years, the investment will pay $\$...
-
Information concerning Montana Company is provided in BE19-16. What are the total product costs for the company under absorption costing?
-
Suppose you borrow $260,000 at 5.25% for 30 years, monthly payments. You pay 2 discount points. A. Your APR on this loan is 5.625%. What amount of other financing fees did you pay? B. Suppose that...
-
Imagine you are the marketing manager who is planning to run a coupon campaign for your product. Your staff prepared the following table of information for you to review. Using this information,...
-
If salaries payable was $75,000 at the beginning of the year and $40,000 at the end of the year, should $35,000 be added to or deducted from income to determine the amount of cash flows from...
-
A corporation issued $10,000,000 of 20-year bonds for cash at 102. How would the transaction be reported on the statement of cash flows?
-
Five supermarket checkers were randomly selected to test two different checkout procedures. The order in which the procedures were assigned to each checker was random. The number of items checked in...
-
Provide a detailed case study The risks from smoking tobacco are well documented and according to the (WHO), the tobacco epidemic is one of the biggest public health threats the world has ever faced,...
-
When young adults leave their parental home to go to college or find employment in a distant part of the country, they face the challenge of establishing new social relationships --one that is not...
-
program using the c language and Unix/Linux to demonstrate your understanding of the Unix system calls for creating and synchronizing processes. The program must display your last name and then your...
-
To finance their new space age aircraft, Boeing plans to issue $2,500,000 worth of bond with an annual coupon rate of 3.5%, maturing in 7 years. If the Flotation cost is expected to be 2.5% of the...
-
A purple ball that has a mass of 5.2 kg and an orange ball with a mass of 5.7 kg collide in an elastic collision. The purple ball is initially moving to the right with a velocity of 15 m/s. The...
-
What are the costs of holding inventory?
-
The Dow Jones Industrial Average reached a high of $ 7801.63 on December 29, 1997. Recall from Example 18.4 that it reached a high of $ 1003 on November 14, 1972. The Consumer Price Index for...
-
If the government awards the contract to Airfirst Aircraft Company, then Senator Firstair stands to earn a great deal of money. If Airsecond Aircraft Company does not suffer financial setbacks, then...
-
Some product development expenditures are recorded as development expenses and others as development costs. Explain the difference between these accounts and how a company decides which...
-
Mandall Company constructed a warehouse for $280,000. Mandall estimates that the warehouse has a useful life of 20 years and no residual value. Construction records indicate that $40,000 of the cost...
-
At the end of its first year of operations, Brianna Company chose to use the revaluation framework allowed under IFRS. Briannas ledger shows Plant Assets $480,000 and Accumulated DepreciationPlant...
-
A 1 kg metal block is heated to 200 C and then dropped into a thermally isolated container with 4 kg of water and 100 gr of ice both at a temperature of 0 C. If the specific heat of water is cw=4186...
-
Why are both ER Diagrams and Relational Modeling needed when a database system is developed?
-
Which data model provides a user with the best "program-data independence"? A. Hierarchial Model B. Network Model C. Relational Model D. Entity Relationship Model Why?
Study smarter with the SolutionInn App