On January 1, 2014, Huff Co. sold $4,000,000 of its 10% bonds for $3,541,184 to yield 12%.

Question:

On January 1, 2014, Huff Co. sold $4,000,000 of its 10% bonds for $3,541,184 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2014?

(1). $212,471

(2). $177,064

(3). $200,000

(4). $240,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

See More Books

Question Posted: Mar 22, 2018 09:19 AM

See More Questions

Muammar deposited RM18,000 as margin to buy four FCPO contracts at a price of RM2,200 per metric ton. At the end of the day, the FCPO price settle at RM2,300. Muammar decides to hold the position...
On December 31, 201x, Shuijing Enterprise issued a 6-year corporate bond with a face value of $1,400, an annual interest rate of 6%, and a market interest rate of 5%. The debt interest is paid once a...
On January 1, 2014, Bonanza Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Bonanza continued to use the FIFO...
Ronnie owns 600 shares of a stock mutual fund. This year he received dividend distributions of 60 stock mutual fund shares ($ 40 per share) and long term capital gain distributions of 45 stock mutual...
Name the four main clastic sediment and sedimentary
Use the American convention to designate the group number corresponding to each of the following groups listed by the European convention. (a) Group IA (b) Group IB (c) Group IIIA (d) Group IIIB.
What is transfer of training? What role does transfer of training play in e-learning?
Indicate whether a firm exhibiting each of the following characteristics would more likely be centralized (C) or decentralized (D). a. Large number of employees who telecommute b. Slow growth rate c....
Accounts receivable Accounts payable Buildings Cash $ 18,000 Long-term notes payable 11,000 Office supplies 45,000 Prepaid insurance 7,000 Unearned services revenue Compute Chavez Company's current...
Find the sustainable harvest ratio for the seal in Exercise 22. (Conservationists have had to harvest seal populations when over fishing has reduced the available food supply to the point where the...
Pigeon Company owns 80% of the outstanding stock of Spiniflex Corporation, which was purchased on January 1, 2008, when Spiniflex's book values were equal to its fair values. The amount paid by...
Jing Company was started on January 1, 2016 when it issued common stock for $41,000 cash. Also, on January 1, 2016 the company purchased office equipment that cost $18,100 cash. The equipment was...
Find any critical numbers for f in Exercises and then use the second derivative test to decide whether the critical numbers lead to relative maxima or relative minima. If f(c) = 0 or f(c) does not...
for each of RCL foods limited 'threats' , explain how the entity is or can mitigate that risk?
Y ltd purchased a debt security for sh . 5 m at a discount for sh . 4 , 6 7 0 , 0 0 0 on 1 st Jan, 2 0 0 4 . The debt is repayable in 5 yrs time at an interest rate of 6 % p . a payable annually in...
What is Hanna's self - employment tax?
How would an increase in a foreign exchange rate will affect a U . S ?
sept 2 purchased 1 0 0 0 unitsember sept 4 purchased 1 0 0 0 units @ 2 . 1 0 per unit sept 5 issued 1 2 0 0 units sept 1 0 received 5 0 0 units @ 2 . 2 5 per unit sept 1 6 issued 7 0 0 units sept 2 2...
A bug is moving along the parabola y = x 2 . At what point on the parabola are the x- and y-coordinates changing at the same rate?
Reconsider Prob. 1474. In order to drain the tank faster, a pump is installed near the tank exit as in Fig. P1475. Determine how much pump power input is necessary to establish an average water...
Residual Claims Clappers Clippers, Inc., is obligated to pay its creditors $6,100 during the year. a. What is the market value of the shareholders equity if assets have a market value of $6,700? b....
Marginal versus Average Tax Rates (Corporation Growth has $82,000 in taxable income, and Corporation Income has $8.200,000 in taxable income. a. What is the tax bill for each firm? b. Suppose both...
Net Income and OCF During 2007, Raines Umbrella Corp. had sales of $840,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $625,000, $120,000, and $130,000,...
Let U = {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}, A = {1, 3, 5, 7, 9}, B = {2, 4, 6, 8, 10}, and C = {1, 2, 4, 5, 8, 9}. List the elements of each set. (a) CC c (b) ( A C ) c (c) A ( B C )
What role does stakeholder engagement play in co-creating and refining organizational visions that resonate with diverse interests, values, and aspirations, thereby fostering collective ownership and...
List a TV show that you enjoy. Choose a group of 3-5 characters that have something in common. Call this set A. List the characters in roster notation. explain their commonality. Choose a second...

On January 1, 2014, Huff Co. sold $4,000,000 of its 10% bonds for $3,541,184 to yield 12%.

Question:

Step by Step Answer:

200...View the full answer

Intermediate Accounting Reporting and Analysis

Students also viewed these Corporate Finance questions