ation of debt income from qualifi
Q: Interest income recognized for debt investments classified as fair value through other comprehensive…
A: Interest income recognized for debt investments classified as fair value through other comprehensive…
Q: Define revenue bonds
A: Answer: A revenue bond is also regarded as a municipal bond that is sponsored by specific individual…
Q: Define Debt-to-assets ratio
A: Debt-asset ratio is a measure that tells how much assets of the firm are financed with the debt.…
Q: Explain how to account for the impairment of an available-for-sale debt investment.
A: Debt Investment: A debt investment involves loaning out the money to an institution in exchange…
Q: Secured vs Unsecured debt
A: Secured Debt: These are debts backed up with some collateral like assets. Hence the borrower of the…
Q: Debt to total funds
A: We know that Assets = Liabilities + ShareHolders Funds Debt to total funds ratio is a measure that…
Q: Difference between current assets and current liabilities.
A: Current assets are those assets which can be realized within short term period or less than one year…
Q: Interest revenue for debt investments at fair value through other comprehensive income
A: IFRS 9 - Financial instruments deals with the calculation of interest income on debt investments.
Q: Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet…
A: Equity, liabilities, and assets are part of the balance sheet of a company. The balance sheet is…
Q: when is stated interest rate of a debt instrument presumed to be fair?
A: Financial instruments are the contract those are traded in the market. the primary financial…
Q: Distinguish between financial liabilities and non-financial liabilities.
A: Liabilities are defined as the amount of money which is owed by a firm in exchange for goods and…
Q: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…
A: The Answer
Q: Understand the accounting for investments in debt securities
A: Debt securities are the financial instruments which entitle the holder of such securities a fixed…
Q: describe the fi nancial statement presentation of and disclosures relating to debt
A: A single line component of the cumulative amount of a long-term firm's liability due after one year…
Q: Explain a debt instrument against the following criteria: Pricing conventions/Rules Seniority
A: The debt instruments refer to the financial instruments, which provide the debt funds to the…
Q: debt
A: Cost of debt can be defined as the rate of interest which a company incurs on its debts. The cost of…
Q: Where on the financial statements is an unrealized holding gain or loss on available for sale debt…
A: Available for sale debt investment is the kind of investment which is made with a purpose of sale…
Q: Demonstrate how to identify and account for debt investments classified for reporting purposes as…
A: A debt security is a type of investment tool in which the bonds are issued by a corporation or the…
Q: what is the meaning of debt-to-asset ratio?
A: Debt is the amount of liability which arises from past or present event for which a business is…
Q: In accounting for short-term debt expected to be refinanced to long-term debt:(a) GAAP uses the…
A: Definition: Long-term debt: Long-term debt refers to the obligations of a firm that are due and has…
Q: Differentiate between debt financing and common share finan
A: Debt financing : Debt financing the form of capital that is borrowed from outside resources. This is…
Q: Explains the effect of debt on profit margin and return on assets (ROA).
A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…
Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.
A: Solution- Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…
Q: Explain the differences between domestic debt and external debt.
A: Debt is defined as money borrowed through one party by another. Many businesses and people utilize…
Q: Accounting The procedure that best reveals the existence of contingent debts is
A: Contingent liability is a liability that may or may happen on a future date that is based on an…
Q: Define Debt Issue Costs.
A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…
Q: Describe the accounting for investments in debt securities.
A: Debt securities: A debt security is a type of investment tool in which the bonds are issued by a…
Q: Describe the accounting for a debt restructuring.
A: Definition: Debt restructuring is a process by which the company may avoid the risk of default on…
Q: What is the structure of Collateralized debt obligation. Please explain in details
A: A collateralized debt obligation also known as CDO is a complex structured credit product which is…
Q: Define the term debt ratio.
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: How should a debt callable by the creditor be reported inthe debtor’s financial statements?
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: Identify and explain the three types of classifications for investments in debt
A: Debt investments: The investments in debt securities are referred to as debt investments. Debt…
Q: What is the debt to total assets ratio?
A: Debt to Total asset Ratio: Debt to total asset ratio is the relationship between the Total…
Q: In accounting for short-term debt expected to be refinanced to long-term debt: a. GAAP uses the…
A: Definition: Long-term debt: Long-term debt refers to the obligations of a firm that are due and…
Q: What is the calculation for the debt ratio? Explain what the debt ratio evaluates?
A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…
Q: Define debt ratio
A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…
Q: Explain the nature of long term debt.
A: Nature of long-term debt: Long-term debts are the obligations of the company that are required to…
Q: Why debtors list must be equal to debtors control
A: Account receivable means the amount due from customer whom we sold the goods on credit.
Q: Identify the major categories of long-term debt financing
A: Long-term debt is the debt that has its maturity which exceeds 1 year. Companies require long term…
Q: What is meant by Provision for Discount on Debtors and Reserve for Discount on Creditors.
A: Provision for discount on debtors: Discount is allowed for debtors when payment is made with in…
Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: Identify the major categories of debt financing
A: Introduction : In simple words, debt refers to the source of fund under which the company issue its…
Q: Describe the accounting for the extinguishment of debt.
A:
Q: Can you explain Collateralized debt obligation
A: A collateralized debt obligation (CDO) is a complicated dependent finance product this is…
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- Mary received a Form 1099-C with $15,000 in box 2 from her credit card company. Her Insolvency Worksheet indicated that Mary was insolvent prior to the cancellation of debt by $8,000. To fill out the Basis (Cost) of Assets Worksheet, what information will she need? The cost basis immediately after the debt cancellation. The cost basis immediately before the debt cancellation. The fair market value (FMV) immediately after the debt cancellation. The fair market value (FMV) immediately before the debt cancellation. Mark for follow upChoose the correct. Which of the following is not a liability that has priority in a liquidation?a. Administrative expenses incurred during the liquidation.b. Salary payable of $1,250 per person owed to 26 employees.c. Payroll taxes due to the federal government.d. Advertising expense incurred before the company became insolvent but not recorded until after the order of relief.On January 2, 2021, WCYU learned that National Insurance, which owed the practice $200,000 at December 31, 2020, had declared bankruptcy. Unfortunately, WCYU is not expected to recuperate any of the amount owing, given the amount of the other creditors involved in the bankruptcy. It is extremely rare for a major insurer to go bankrupt and as such WCYU had not set up an allowance for doubtful accounts in the past. Since the bankruptcy notice was not received until 2021, the 3 owners decided to write-off the whole amount in 2021. Is this correct? Explain why or why not. Include the correct computations if applicable.
- An entity had the following liabilities on December 31, 2020: Accounts Payable 55,000 Unsecured notes, 8% due 7/1/2021 400,000 Accrued expenses 35,000 Contingent liability 450,000 Deferred tax liability 25,000 Senior bonds, 7%, due 3/31/2021 1,000,000 The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The legal counsel expects the suit to be settled in 2021 and has estimated that the entity will be liable for damages in the range of P450,000 to P750,000. The deferred tax liability is expected to reverse in 2021. What amount should be reported on December 31, 2020 for current liabilities? None of theseNone of these 940,000940,000 1,490,0001,490,000 1,515,0001,515,000…A property/casualty insurer sold a one-year insurance policy for $480 on July 1. The insurer incurred $144 in underwriting expenses for the policy. Disregarding losses, what is the insurer's pre-tax net income from this policy in the year the policy was written under statutory accounting rules? A-$144 B $ 96 C $168 D $236On May 31, 2021, Joe's Car Lot sold Anthony a used car on account for $20,000. Joe's Car Lot uses the accrual method. In 2022, after $6,000 of payments had been made, Anthony filed for bankruptcy and Joe's Car Lot was notified that he could not expect to receive any of the amount owed to him. In 2023 final settlement was made and Joe's Car Lot received $7,000. How much bad debt loss can Joe's Car Lot deduct on his tax return in 2022? Options: a.) $3,000 b.) $0 c.) $14,000 d.) $7,000 e.) $6,000
- Which of the following statements regarding the home mortgage interest expense deduction is false for a single taxpayer? Taxpayers may deduct all of the interest paid on up to $1,000,000 of acquisition debt if the debt occurred in January of 2017. Taxpayers may deduct all of the interest paid on up to $750,000 of acquisition debt if the debt occurred in January of 2018. If, in 2021, a taxpayer refinances acquisition debt that was originally incurred in January of 2017, the taxpayer may deduct the interest on up to only $750,000 of the refinanced loan. None of the choices is false.in 2019, Reggie covered a P200,000 bad debt written off on Dec 2017. The gross income of Reggie in 2017 is P1,500,000 and he had a total of P300,000 business expense, excluding the bad debt written off of P400,000. Compute the income to be reported in 2019 if Reggie had a gross income and business expense of P1,000,000 and P300,000, respectivelyIn 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent isrecorded as deferred revenue and then recognized as income in the period tenants occupy rental property, but forincome tax reporting it is taxed when collected. The deferred portion of the rent collected in 2018 was $50 million. Taxable income is $180 million. No temporary differences existed at the beginning of the year, and the taxrate is 40%. Prepare the appropriate journal entry to record income taxes.
- State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.a. A note for $2,000 payable in twenty monthly installments of $100 each that provides the following: “In case of death of maker, all payments not due at date of death are canceled.”b. A note stating “This note is secured by a mortgage on personal property located at 351 Maple Street, Smithton, Illinois.”c. A certificate of deposit reciting “June 6, 2014, John Jones has deposited in the Citizens Bank of Emanon, Illinois, Two Thousand Dollars, to the credit of himself, payable upon the return of this instrument properly indorsed, with interest at the rate of 6 percent per annum from date of issue upon ninety days’ written notice. (Signed) Jill Crystal, President, Citizens Bank of Emanon.”d. An instrument reciting “I.O.U., Mark Noble, $1,000.00.”e. A note stating…The Statement of Financial Position of Sam as at 30 July 2021 showed the following assets and liabilities: 2021 2020 Assets $ $ Cash 15 000 12 500 Accounts receivables 30,000 40,000 Allowance for doubtful debts (3,000) (5,000) Inventory 13,500 10,500 Rent Receivable 7,000 7,500 Plant 100,000 100,000 Accumulated Depreciation - Plant (40,000) (30,000) Deferred Tax Asset ? 3,400 Liabilities Accounts Payable 19,000 16,000 Unearned rent revenue 5,000 3,500 Provision for annual leave 2,500 2,000 Deferred Tax Liability ? 5,200 Additional information a. Accumulated depreciation of plant for tax purposes was $55,000 as at 30 July 2021. b. The tax rate is 30%. Question Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 July 2021.What are the criteria for taxpayers to be able to deduct a debt written off as bad inincome year? PLEASE put 3 REFERENCES