Sandhill Company purchased $1280000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1329096 at an effective interest rate of 7%. Using the effective interest method, Sandhill Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $5048 and $5192, respectively. At February 1, 2022, Sandhill Company sold the Carlin bonds for $1316800. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1320500. Assuming Sandhill Company has a portfolio of available-for-sale debt investments, what should Sandhill Company report as a gain (or loss) on the bonds
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sandhill Company purchased $1280000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
When both parties to a contract are mistaken as to the same material fact either paarty can rescind the contract?
Answers (1)
Ken is moving to a new city and considering whether he should rent or buy an apartment. What factors should he consider in his decision? A) His budget. B) How long he plans to live in the city. C) Financial stability of the housing market.
Answers (1)
An operation is located in a jurisdiction that allows it to hold TCS food without temperature control. How many hours can it display hot TCS food without temperature control before food must be sold, served, or thrown out?
Answers (1)
The Cash account of Safe and Secure Security Systems reported a balance of $ 2 comma 420 at December 31 , 2018. There were outstanding checks totaling $ 1 comma 000 and a December 31 deposit in transit of $ 400.
Answers (1)
Both the straight-line method and the effective-interest method of amortization will always result in: a. the same amount of interest expense being recognized each year. b.
Answers (1)
New Questions in Business
What are the three primary questions to ask when conducting a preliminary inquiry?
Answers (1)
Downtown Coffee Roasters is a premium cafe that is reputed for its superior customer service. The coffee shop also serves gourmet food to its customers, which allows it to charge a premium price.
Answers (1)
Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?
Answers (1)
a customer asks an agent for the current market value of his stock portoflio. the stock market has been dropping sharly today and the agent gives the customer the most recent valuation that he has, which is based on yesterays closing prices.
Answers (1)
Which of the following is an advantage of a sole proprietorship? Group of answer choices a. It has limited liability for the debts incurred by the business. b. It is unaffected by the death or withdrawal of its owner. c. It is hard to dissolve.
Answers (1)