Question: On October 1 , 2 0 2 5 , Carla Vista Company purchased to hold to maturity, 4 5 0 , $ 1 0 0

On October 1,2025, Carla Vista Company purchased to hold to maturity, 450,$1000,9% bonds for $470000. An additional $14500 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1,2029. Carla Vista uses straight-line amortization. Ignoring income taxes, the amount reported in Carla Vista's 2025 income statement from this investment is
[$11325$8925$10125$12525]
On October 1,2025, Carla Vista Company purchased to hold to maturity,

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

While on holiday in Bridlington, Helen had her credit cards and purse stolen from the beach while she was swimming. She was left with only 40, which she had kept in her hotel room, but she had three...

Q:

1) 2) On June 10, Carla Vista Company purchased $8,500 of merchandise on account from Martinez Company, FOB shipping point, terms 2/10,n/30. Carla Vista pays the freight costs of $490 on June 11....

Q:

Current Attempt in Progress On October 1 , 2 0 2 1 , Carla Vista Company purchased to hold to maturity, 5 7 0 , $ 1 0 0 0 , 1 0 % bonds for $ 5 9 0 0 0 0 . An additional $ 1 5 , 0 0 0 was paid for...

Q:

Carla Vista Company purchased $1850000 of 11% bonds of Scott Company on January 1, 2021, paying $1746375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount...

Q:

On October 1 , 2 0 2 1 , Carla Vista Company purchased to hold to maturity, 5 7 0 , $ 1 0 0 0 , 1 0 % bonds for $ 5 9 0 0 0 0 . An additional $ 1 5 , 0 0 0 was paid for accrued interest. Interest is...

Q:

Multiple Choice Question 70 Carla Vista Company purchased $1250000 of 10% bonds of Scott Company on January 1, 2018, paying $1170375. The bonds mature January 1, 2028; interest is payable each July 1...

Q:

Carla Vista Company purchased $1850000 of 11% bonds of Scott Company on January 1, 2021, paying $1743903. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount...

Q:

Carla Vista Company purchased $ 1 2 5 0 0 0 0 of 1 0 % bonds of Sandhill Company on January 1 , 2 0 2 5 , paying $ 1 1 7 5 3 1 0 . The bonds mature on January 1 , 2 0 3 1 ; interest is payable each...

Q:

Carla Vista Company purchased $1250000 of 10% bonds of Scott Company on January 1, 2021, paying $1170375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount...

Q:

The following information relates to the debt investments of Flint Inc. during a recent year: 1. 2. 3. On February 1, the company purchased Gibbons Corp. 10% bonds with a face value of $258,000 at...

Q:

The following information relates to the debt investments of Swifty inc. during a recent year: 1. 2. 3. On February 1, the company purchased Gibbons Corp. 10% bonds with a face value of $336,000 at...

Q:

Glass, Inc., began 2012 with $83,000 in cash. During 2012, Glass earned net income of $430,000, and adjustments to reconcile net income to net cash provided by operations totaled $75,000, a positive...

Q:

Arusha Distributors, a distribution firm in Tanzania is considering opening a distribution center in Malawi. The firm management believes that the distribution center has about the same risk as the...

Q:

is the interest expense deductible? if not how is it recorded on schedule M - 1 form?

Q:

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...