Introduction:
Affiliate bonds purchased from non-affiliate: The consolidated entity, on the acquisition of an affiliate’s bond from non-affiliates, retires it at the time of purchase. The acquisition of an affiliate’s bonds by another company within the consolidated entity is referred to as constructive retirement.
Under constructive retirement, the gain or loss on retirement are shown in the consolidated income statement for the period, but not reported in the consolidated
To choose: The correct answer to determine amount of interest income recorded by G for 20X6.
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ADVANCED FINANCIAL ACCOUNTING IA
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- What is the value of your money at year 3 if you have 1,200$ today and 1,500$ at year 5? (r= 7.12%) Select one: a.2,782 b.3,500 c.1,687 d.2,632arrow_forwardGeneral Computers Inc. purchased a computer server for $65,500. It paid 25.00% of the value as a down payment and received a loan for the balance at 6.50% compounded semi-annually. It made payments of $2,400.41 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? o payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 11 Payment $0.00 $0.00 Interest Portion Principal Portion 50.00 50,00 SUBMIT QUESTION $0.00 50.00 Principal Balance $49.125.00 $0.00 $0.00arrow_forwardAsaparrow_forward
- Question: A debenture of $100 each is issued at $90 per debenture. How much is the discount? A. $0 B. full C . $10 D. $90arrow_forwardProblem 5-58 (LO 5-3) Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2022: Home acquisition debt interest Credit card interest Bose equity loan interest (used for home improvement) Investment interest expense Mortgage insurance premium (PMI) Answer is complete but not entirely correct. Amounts $ 1,050 $ 17,760 $ 10,500 3,200 5,210 Required: With 2022 net investment income of $1,050, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal and the home equity loan principal combined are less than $750,000. Deduction for investment interest expense Total deduction for allowable interest 8,400 1,000 4arrow_forwardAssignment - 11. Quiz: Savings Accounts SECTION ASSIGNMENTS COURSES Attempt 1 of 1 1 2 3 4 Which functions denotes the value of a car loan that accrues 18% annual simple interest for t years? Of (t) = 10000 + 120t Og(x) = 10000 + 12t Oh(x) = 12000t Ok (x) = 10000 1.12t NEXT QUESTION O ASK FOR HELP S Type here to searcharrow_forward
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