Sunbucks owns the following debt security: KBM Company 6 year bond: (AFS security) Amortized Cost...
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Sunbucks owns the following debt security: KBM Company 6 year bond: (AFS security) • Amortized Cost on 12/31/YR 1: $3,450 • Fair value on 12/31/YR 1: $3,900 • Amortized Cost on 12/31/YR 2: $3,555 • Fair value on 12/31/YR 2: $4,189 • Total interest revenue earned during Year 2: $202 • Total interest cash received during Year 2: $184 Assess all the transactions related to this investment for Year 2. What is the total impact to Sunbucks net income for Year 2 for this bond? If net income increases, just put the number. If it decreases, but a - sign in front of your number. Sunbucks owns the following debt security: KBM Company 6 year bond: (AFS security) • Amortized Cost on 12/31/YR 1: $3,450 • Fair value on 12/31/YR 1: $3,900 • Amortized Cost on 12/31/YR 2: $3,555 • Fair value on 12/31/YR 2: $4,189 • Total interest revenue earned during Year 2: $202 • Total interest cash received during Year 2: $184 Assess all the transactions related to this investment for Year 2. What is the total impact to Sunbucks net income for Year 2 for this bond? If net income increases, just put the number. If it decreases, but a - sign in front of your number.
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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