On January 2, 2016, Banno Corp. issued P1,500,000 of 10% bonds to yield 11% due December 31, 2025. Interest on the bonds is payable annually each December 31. The bonds are callable at 101, and on January 2, 2019, Banno Corp. called P1,000,000 face amount of the bonds and retired them. Instructions a. Determine the price of the Banno bonds when issued on January 2, 2016. b. Prepare an amortization schedule for 2016–2020 for the bonds. c. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Banno as a result of retiring the P1,000,000 of bonds on January 2, 2019, and prepare the journal entry to record the retirement.

Q: How do you prepare determine the cash generated/used in investing activities and financing…

A: Answer:

Q: Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16…

A: In this question, we will calculate the maximum depreciation expense by using MACRS Table.

Q: What is the difference between favorable and unfavorable book -tax differences?

A: Whenever reconciliation book earnings to taxable income, favorable book-tax differences were indeed…

Q: Referring to your textbook, name and define the classess of tenancies. Within the section about…

A: Generally, the tenancy is of four types. Fixed term  Periodic tenancy Tenancy at will Tenancy at…

Q: DuPage Company purchases a factory machine at a cost of $18,000 on January 1, 2010. DuPage expects…

A: The correct answer for the above mentioned question is given in the following steps for you…

Q: The following data are for the year ended December 31, 2021:                         Beginning…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: MC37 March Corporation bought Patent A for P40,000 and Patent B for P60,000. March also paid…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Finch Company began its operations on March 31 of the current year. Finch has the following…

A: Calculation of cash expense for April month Particulars Amount Manufacturing cost (156800*3/4)…

Q: Under the fair value option for debt investment, entities report all changes in fair value in…

A: Lets understand the basics. Fair value option means a option in which change in fair value in debt…

Q: The average interest earned on the loans is 7 percent and the average cost of deposits is 6 percent.…

A: The strategy of liquidity management is a strategy to make arrangements for and to ensure the…

Q: In the financial year to June 30, 2021, HIFI Ltd issued options for 400,000 shares. During that…

A: Earnings per share are the amount of net income that is held in hands of each shareholder of the…

Q: EcoMart establishes a $2,000 petty cash fund on May 2. On May 30, the fund shows $840 in cash along…

A: The question is based on the concept of Financial Accounting.

Q: During April of the current year, Ronen purchased a warehouse that he used for business purposes.…

A: In the given case, as the asset is purchased in April month of the current year, it falls in the 4th…

Q: a. The Co. can increase unit sales from 500 to 540 by increasing the monthly advertising budget by…

A: The marginal cost process is based on the difference between product costs and period costs. Only…

Q: You have the following information for Coronado Inc. for the month ended June 30, 2022. Coronado…

A: Sales Transactions   Date   Units  Price  Sales Value (units x price) 10-Jun Sales 110 53 5830…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: Shareholder's Activism: Shareholder activism is a technique for shareholders to influence a…

Q: Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to…

A: Deposits which are made by the depositor into the bank will earn an income on it which is known as…

Q: n January 1, Lumia Company's liabilities are $66,000 and its equity is $46,000. On January 3, Lumia…

A: The transactions in the business effects two or more accounts at the same time. If one account is…

Q: On the internet and in the news you see many articles on non-profit companies and their contribution…

A: A non-profit organization is normally treated as a normal corporate corporation, with the added…

Q: Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities.…

A:

Q: You have been hired by Ashton Corporation, a retailer, to assist in preparing the annual cash…

A: The cash budget is prepared to estimated the cash requirements during the period. It tells about the…

Q: Activity-Based Costing EXERCISE 7-3 Compute Activity Rates [LO3] As You Like It Gardening is a small…

A: In case of ABC costing, cost is allocated based on activity. Thus, it is referred as activity-based…

Q: Morgan and Company has planned a cash budget for the third quarter of 2004. The cash balance on July…

A: A cash budget is a document produced to help a business manage their cash flow. A cash budget is…

Q: Calculate the gross earnings of Mr Ahmed under Halsey and Rowan plan.

A:

Q: Paid the Gazette $200 to place an employment advertisement for an accounting clerk. solve this…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Bremer Company made the following exchanges of assets during 2019: Jan. 1 Acquired a more advanced…

A: The journal is prepared to record day to day financial transactions of the business. The assets and…

Q: Preferred shares, $4.55 non-cumulative,       52,000 shares authorized and issued* $ 3,328,000…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Prepare the journal entry for the following transactions (1) Geysler Company sold some old equipment…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: 25. At 5% annual interest, what is the difference in the present and future value of P100 paid at…

A: In the context of the given question, we can compute the present value and future value by using the…

Q: ohnson Corporation is preparing a flexible budget and desires to separate its lectricity expense,…

A: GIVEN   Machine hours Electricity Expense January 3,500 P31, 500 February 2, 000 P20,000 March…

Q: McGraw-Hill Connect 5 Question 2 p.mheducation.com/ext/map/index.html?_con%3con&external oogleDOCS…

A: The question is related to Revenue Recognition. Accrued revenue is the product of accrual accounting…

Q: The company, North S.L., has the following information in the Balance Sheet and Profit and Loss…

A: Note: “As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

Q: two (2) adjustments required to reconcile the Cash Book with the Bank Statemen

A: The bank reconciliation statement shows the reconciliation of the bank statement to the cash account…

Q: Est. Percentage Uncollectible Age Interval Balance Not due $63,000 2% 1-30 days past due 7,100 31-60…

A: Formula: Estimated Uncollectible amount = Balance amount x Estimated Percentage Uncollectible.

Q: Prepare journal entries to record the following transactions entered into by the Marrow Company:…

A: As per the given question, we have to pass a few journal entries in the books of Marrow Company. The…

Q: will hurt employee morale. The same employee requests, records, and makes payment for purchases of…

A: internal controls , mechanism rules and procedures that is implemented by the company in order to…

Q: Fiona Sporty uses a purchases journal, a cash payments journal, a sales journal, a cash receipts…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: ABC Company that operates 20 luxury service cars around the metro area. Its clientele consists of…

A: Formula under High low method: Variable cost per unit = (Highest activity cost - Lowest activity…

Q: The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment…

A: Formula: Average rate of return = Average annual income / Initial cost of the investment where,…

Q: Assets Cash Accounts receivables 34,000 Liabilities and Equity Accounts Payable Wages Payable Income…

A: Calculation of ending balance of Cash    Amount  Beginning Balance of Cash  $          10,000…

Q: Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment.…

A: When the contract rate of 7% is more than the market rate of 6% the bonds are said to be issue at…

Q: Prepare the journal entries to record the following transactions, in the books of Holman Dress…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Below is budgeted production and sales information for Flushing Company for the month of December.…

A: Budgeted production for product ZZZ = Total requirements - Estimated beginning inventory where,…

Q: REVISED WITHHOLDING TAX TABLE FOR COMPENSATION DAILY 1 2 3 4 5 6 Compensation Range 685 and…

A: Compensation refers to the remuneration which is paid by the employer to its employee in against of…

Q: SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT) Income Payment EWT Income Payment EWT…

A: Expenses like rent, professional fees, sub-contracted services are subject to withholding tax in…

Q: On January 1, 2019, Penn Incorporated paid $350,000 for 70% of Sylvania Company's outstanding…

A: Consolidated accounting reports are those that reports the combined assets and liabilities of both…

Q: Maritza (which means “star of the sea") Joseph is preparing the 2022 budget for one of CK's kayaks.…

A: Production during the year = Closing inventory - opening inventory +Sales To calculate the sales…

Q: CCC Partnership borrowed $100,000 on a five-year recourse note from a local bank. It also purchased…

A: A form of business under which two or more partners are ready to start their business and also able…

Q: Twenty metrics of liquidity solvency and profitability  the comparative financial statements

A: As per protocol allowed to answer first three sub parts and post the remaining in the next…

Q: To create the global capital structure in a MNC, the business must ________.

A: A. diversify to the oversea markets

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.