On January 1, 2022, Eunice Company purchased a 4-year, P5,000,000 face value 10% debt instruments for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2022, Eunice Company purchased a 4-year, P5,000,000 face value 10% debt instruments for P5,350,000. The debt instruments pay interest every December 31 of each year and were originally dated January 1, 2022. On December 31, 2022. the fair value of the instruments is based on 7% effective interest. Eunice Company has an objective of collecting contractual cash flows and to sell the investment when circumstances warrants. On December 31, 2022 and December 31, 2023, the bonds were quoted at 102 and 101, respectively. The following are the PV factors: PV factor of 10% after 3 years PV factor of 7% after 3 years PV factor of 10% after 4 years PV factor of 7% after 4 years PV factor of annuity of 10% after 3 years PV factor of annuity of 7% after 3 years PV factor of annuity of 10% after 4 years PV factor of annuity of 7% after 4 years How much is the unrealized gain (loss) that should be taken in other comprehensive income for the year ended December 31, 2023? 0.751315 0.816298 0.683013 0.762895 2.486852 2.624316 3.169865 3.387211 On January 1, 2022, Eunice Company purchased a 4-year, P5,000,000 face value 10% debt instruments for P5,350,000. The debt instruments pay interest every December 31 of each year and were originally dated January 1, 2022. On December 31, 2022. the fair value of the instruments is based on 7% effective interest. Eunice Company has an objective of collecting contractual cash flows and to sell the investment when circumstances warrants. On December 31, 2022 and December 31, 2023, the bonds were quoted at 102 and 101, respectively. The following are the PV factors: PV factor of 10% after 3 years PV factor of 7% after 3 years PV factor of 10% after 4 years PV factor of 7% after 4 years PV factor of annuity of 10% after 3 years PV factor of annuity of 7% after 3 years PV factor of annuity of 10% after 4 years PV factor of annuity of 7% after 4 years How much is the unrealized gain (loss) that should be taken in other comprehensive income for the year ended December 31, 2023? 0.751315 0.816298 0.683013 0.762895 2.486852 2.624316 3.169865 3.387211
Expert Answer:
Answer rating: 100% (QA)
Answer The unreal ized gain loss that should be taken in other comprehensive income for th... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Wynn Sheet Metal reported a net operating loss of $100,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%. Taxable income, tax rates, and income taxes paid in Wynn's...
-
Wynn Sheet Metal reported a net operating loss of $160,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%. Taxable income, tax rates, and income taxes paid in Wynn's...
-
In 2020 Hill Corporation reported a net operating loss of $10,000 that it carried forward to 2021. In 2020 Hill also reported a net capital loss of $3,000 that it carried forward to 2021. In 2021,...
-
The average annual salary for all U.S. teachers is $47,750. Assume that the distribution is normal and the standard deviation is $5680. Find the probability that a randomly selected teacher earns a....
-
You land on a distant planet in another universe and find that the n = 1 level can hold a maximum of 4 electrons, the n = 2 level can hold a maximum of 5 electrons, and the n = 3 level can hold a...
-
Which argument do you support? Provide an example to explain your answer.
-
Serum cholesterol levels (y) and age in years (x) were recorded for several men in a medical center. Cholesterol levels were measured in milligrams per deciliter. The following MINITAB output...
-
a. Discuss the concept of pyramiding as it applies to this investment situation. b. What is the present margin position (in percent) of Ravi's account? c. Ravi buys the 1,000 shares of RS through his...
-
You are a Board of Management (BoM) member in an investment company, managing assets of several mutual funds. You consider the segments of financial markets where your funds invest to be mostly...
-
On January 1, 2023, Pulaski, Incorporated, acquired a 60 percent interest in the common stock of Sheridan, Incorporated, for $392,400. Sheridan's book value on that date consisted of common stock of...
-
For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not...
-
Consider the apparent pricing and contracting strategies of the organization you selected. Next, reflect on how price might be a strategic issue for the organization including a rationale as to why...
-
What is the total cost for the customer service category of the value chain?
-
1. Identify 2 cultural or gender differences you may encounter in the field of policing 2. What impact might these differences have on the communication process? 3. What steps would you take to...
-
A trader creates a bull call spread by buying an option for $12.00 at the $100 strike price and selling an option at $5.00 at the $120 strike price. What is the net payoff per share (enter 4.00, not...
-
A company's balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27...
-
During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Number of Unit Total k Date January 1 May...
-
1-Stern observed all of the following results EXCEPT _______ in his experiment. A-one of the recombinant phenotypes was associated with an X chromosome of normal length B-the number of car, B+ male...
-
The projected benefit obligation was $80 million at the beginning of the year and $85 million at the end of the year. Service cost for the year was $10 million. At the end of the year, there was no...
-
On January 1, 2021, the general ledger of TNT Fireworks included the following account balances: During January 2021, the following transactions occurred: Jan. 1 Purchased equipment for $19,500. The...
-
What is the going concern assumption?
-
__________________ are small airfoil sections usually attached to the upper surface of a wing.
-
The _______________ is the primary flight control that moves the aircraft around the horizontal or lateral axis.
-
A servo tab is similar to a balance tab in location and effect, but it is designed to operate the primary flight control surface, not just reduce the force needed to do so.
Study smarter with the SolutionInn App