Question: Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2019 (amounts in thousands). This is Dawson Ltd.'s first

Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2019 (amounts in thousands). This is Dawson Ltd.'s first year of operations.

Instructions
a. Dawson elects to use the fair value option whenever possible. Assuming that Dawson's net income is ¥100,000 in 2019 before reporting any financial instrument gains or losses, determine Dawson's net income for 2019.
b. Record the journal entry, if any, necessary at December 31, 2019, to record the fair value option for the bonds payable.

Carrying Amount Fair Value (at December 31) Debt investments (intent is to hold for collection) Bonds payable 41,000 40,000 220,000 195,000

Step by Step Solution

★★★★★

3.45 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Net income before gains and losses 100000 Debt investm... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1353-B-M-A-I(4377).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Unlock the code below. The first number reveals the question number answered above. The second number reveals the ordered letter of the answer. For example, 12:2 directs the decoder to question 12...

Presented below is selected information related to the financial instruments of Kirkland Company at December 31, 2014. This is Kirkland Companys first year of operations. Instructions (a) Kirkland...

Presented below is selected information related to Lance Company at December 31, 2012. Lance reports financial information monthly. (a) Determine the total assets of Lance Company at December 31,...

Presented below is selected information related to Santos Company at December 31, 2011. Santos reports financial information monthly. (a) Determine the total assets of Santos Company at December 31,...

Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2022 (amounts in thousands). This is Dawson Ltd.s first year of operations. Instructions a....

E16.8 (LO 1) (Fair Value Option) Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2025 (amounts in thousands). This is Dawson Ltd.s first...

Fair Value Option Presented below is selected information related to the financial instruments of Dawson Company at December 31, 2010. This is Dawson Company's first year of operations. (a) Dawson...

Presented below is selected information related to the financial instruments of Dawson Company at December 31, 2017. This is Dawson Companys first year of operations. Carrying Amount Fair Value (at...

Presented on page 865 is selected information related to the financial instruments of Dawson Company at December 31, 2015 (amounts in thousands). This is Dawson Companys first year of operations....

Presented below is selected information related to the financial instruments of Dawson Company at December 31, 2020. This is Dawson Company?s first year of operations. Instructions a. Dawson elects...

Please explain your answers and why certain gains and losses from these investments are being included in net income and why others aren't. Thanks! E16.21 ( LO 1 ,2,4 ) (Fair Value Option) Presented...

The taxpayer, Components R Us Pty. Ltd., manufactures and sells car components. In 2016 it entered into a ten-year market sharing contract with XYZ, a company in China, whereby Components R Us agreed...

In order for you to be indifferent between the after-tax returns on a taxable bond paying 3.78% and a tax-exempt bond paying 2.95%, calculate what would your tax bracket need to be?

Q 4 . Express lim n i = 1 4 n 4 - ( 4 t n - 2 ) 2 2 as a definite integral in the way we've stodied them, and then use geometry to evaluate it ( not ator of our integration teclanicons ) .

8. (Vectors) The summit of a mountain, 2450 m above base camp, is mea- sured on a map to be 4580 m horizontally from the camp in a direction 38.4 west of north. What are the components of the...

McCormick & Company is considering building a new factory in Largo, Maryland. McCormick & Company decided to offer $4,424,000 to obtain the land for this project. The new factory will require...

Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for September: Units 12" Pizza 16" Pizza Budgeted...

An fund has a capital of $100M. Its investment opportunity set consists of a risky asset with expected return of 8%, and risk of 16%. The fund wishes to achieve an expected return of 12%. The...

The Webster Corporation is a manufacturer of an electronic circuit board called the "EC". which it sells in the intermediate market. The following information is available about the EC (revenue and...

What are some of the risks of this outsourcing?

Gogeon Inc. uses a calendar year for financial reporting. The company is authorized to issue 50 million common shares. At no time has Gogeon issued any potentially dilutive securities. The following...

Koala Inc. had 210,000 common shares outstanding on December 31, 2013. During 2014, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For 2014, the company reported...

On January 1, 2014, Logan Limited had shares outstanding as follows: 6% cumulative preferred shares, $100 par value, 10,000 shares issued and outstanding ...... $1,000,000 Common shares, 200,000...

6. The forms and methods of stock market operation In the United States, stock markets support several types of trading activity. Which of the following transactions falls into these supported types...

Riverton Mining plans to purchase or lease $435,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be...

1 - Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it...