Business, 18.01.2021 14:00 jeronimo18

Tanner-UNF Corporation acquired as a long-term investment $170 million of 6.0% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $140.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $150.0 million. Required:
a. How would this investment be classified on Tanner-UNF's balance sheet?
b. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:20

After all revenue and expense accounts have been closed at the end of the fiscal year, income summary has a debit of $2,450,000 and a credit of $3,000,000. at the same date, retained earnings has a credit balance of $8,222,600, and dividends has a balance of $125,000. required: a. journalize the entries required to complete the closing of the accounts on december 31. refer to the chart of accounts for exact wording of account titles. b. determine the amount of retained earnings at the end of the period.

Answers: 1

Answer

Business, 22.06.2019 19:40

The martinez legal firm (mlf) recently acquired a smaller competitor, miller and associates, which specializes in issues not previously covered by mlf, such as land use and intellectual property cases. given the increase in the firm's size and complexity, it is likely that its internal transaction costs willa. decrease. b. increase. c. become external transaction costs. d. be eliminated.

Answers: 3

Answer

Business, 22.06.2019 20:20

John has served as the chief operating officer (coo) for business graphics, inc., a publicly owned firm, the past 5 years. which of the following statements about john is correct? both john and the ceo of business graphics must certify to the sec that the firm's financial statements are accurate. as the coo, john will be ranked higher than the ceo but still below the cfo. in john's postition as the coo, it is highly unlikely that he would also be the chairperson of the board of directors. as the coo, john would typically be involved with accounting, finance, and asset purchase decisions.

Answers: 2

Answer

Business, 23.06.2019 03:50

John is a journalist he went to a product demonstration for a new computer some of what he heard was informative while the rest was meant to persuade consumers to buy the product which two statements in the excerpt are persuasive rather than informative

Answers: 2

Answer

You know the right answer?

Tanner-UNF Corporation acquired as a long-term investment $170 million of 6.0% bonds, dated July 1,...

Questions