Question

Testbank Multiple Choice Question 93 The 14% bonds payable of Waterway Industries had a carrying amount...

Testbank Multiple Choice Question 93

The 14% bonds payable of Waterway Industries had a carrying amount of $4300000 on December 31, 2020. The bonds, which had a face value of $4140000, were issued at a premium to yield 12%. Waterway uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2021, several years before their maturity, Waterway retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is

$165600.
$0.
$37400.
$55000.

Testbank Multiple Choice Question 99

Cullumber Company’s 12/31/21 balance sheet reports assets of $7120000 and liabilities of $2920000. All of Cullumber’s assets’ book values approximate their fair value, except for land, which has a fair value that is $432000 greater than its book value. On 12/31/21, Blossom Corporation paid $7261000 to acquire Cullumber. What amount of goodwill should Blossom record as a result of this purchase?

$2629000
$3061000
$0
$141000

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Testbank Multiple Choice Question 55 On May 1, 2021, Marigold Corp. issued $1560000 of 6% bonds...
Testbank Multiple Choice Question 55 On May 1, 2021, Marigold Corp. issued $1560000 of 6% bonds at 103, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marigold’s common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 95. On May 1, 2021, the fair value of Marigold’s common stock was $35 per share and of the warrants was...
At December 31, 2020, the 10% bonds payable of ABC Inc. had a carrying value of...
At December 31, 2020, the 10% bonds payable of ABC Inc. had a carrying value of $ 760,000. The bonds, which had a face value of $ 800,000, were issued at a discount to yield 12%. The amortization of the bond discount had been recorded using the effective-interest method. Interest was being paid on January 1 and July 1 of each year. On July 1, 2021, ABC retired the bonds at 102. Prepare the journal entries for July 1, 2021...
Testbank Multiple Choice Question 90 Concord Corporation signed a three-month, zero-interest-bearing note on November 1, 2020...
Testbank Multiple Choice Question 90 Concord Corporation signed a three-month, zero-interest-bearing note on November 1, 2020 for the purchase of $497100 of inventory. The face value of the note was $508500. Concord used a “Discount of Note Payable” account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2020 will include a debit to Interest...
Testbank Multiple Choice Question 65 The following data are provided: December 31 2021 2020 Cash $...
Testbank Multiple Choice Question 65 The following data are provided: December 31 2021 2020 Cash $ 1700000 $ 1005000 Accounts receivable (net) 1550000 1250000 Inventories 2550000 2100000 Plant assets (net) 7500000 6600000 Accounts payable 1150000 815000 Income taxes payable 215000 90000 Bonds payable 1350000 1350000 10% Preferred stock, $50 par 2100000 2100000 Common stock, $10 par 2500000 1850000 Paid-in capital in excess of par 1700000 1300000 Retained earnings 4000000 3400000 Net credit sales 12800000 Cost of goods sold 8600000 Operating...
Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January...
Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2018. The bonds sold for $739,816 and mature in 2037 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Pierce determines interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2018, the fair value of the bonds...
Testbank Multiple Choice Question 67 The following data are provided: December 31 2021 2020 Cash $...
Testbank Multiple Choice Question 67 The following data are provided: December 31 2021 2020 Cash $ 1350000 $ 995000 Accounts receivable (net) 1550000 1250000 Inventories 2600000 2150000 Plant assets (net) 8000000 6400000 Accounts payable 1050000 790000 Income taxes payable 220000 90000 Bonds payable 1450000 1450000 10% Preferred stock, $50 par 2200000 2200000 Common stock, $10 par 2500000 1700000 Paid-in capital in excess of par 1550000 1250000 Retained earnings 3800000 3400000 Net credit sales 12750000 Cost of goods sold 8400000 Operating...
Notson Co. issued 12% bonds with a face value of $1,800,000 at a premium to yield...
Notson Co. issued 12% bonds with a face value of $1,800,000 at a premium to yield 10%, with interest paid on June 30 and December 31. These bonds had a carrying value of $1,872,000 on December 31, 2019. Notson uses the effective interest method of amortization. On June 30, 2020, several years before their maturity, Notson retired the bonds at 105 plus accrued interest. Direct costs associated with the bond retirement totaled $3,000. Compute: The carrying value of the bonds...
Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $850 million on...
Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $850 million on January 1, 2018. The bonds sold for $771,793,266 and mature on December 31, 2037 (20 years). For bonds of similar risk and maturity the market yield was 9%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2018, the fair value...
Exercise 14-29 Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 12% bonds, dated January 1,...
Exercise 14-29 Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on January 1, 2018. The bonds sold for $734,125,169 and mature on December 31, 2037 (20 years). For bonds of similar risk and maturity the market yield was 13%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair...
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $880 million on...
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $880 million on January 1, 2018. The bonds sold for $813,796,294 and mature on December 31, 2037 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2018, the fair value...