Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 16, Problem 16.17BE
a.
To determine
To find: The missing term.
Given information:
Bond is held-to-maturity
Carrying value is $10,000.
Fair value is $9,000.
Present value of future cash flows is $9,300.
b.
To determine
To find: The missing term.
Given information:
Carrying value is $10,000.
Fair value is $9,000.
Present value of future cash flows is $9,300.
c.
To determine
To find: The missing term.
Given information:
Available-for-sale.
Carrying value is $10,000.
Fair value is $11,000.
Present value of future cash flows is $10,300.
d.
To determine
To find: The missing term.
Given information:
Available-for-sale
Carrying value is $10,000.
Fair value is $9,000.
Present value of future cash flows is $9,300.
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1. The amortization of a discount on an investment in bonds measured at amortized cost
A. Increases the carrying amount of the investment
B. Is the excess of interest income over interest received or receivable.
C. Is recorded directly to the invesment account
D. All of these
2. Which of the following statements is correct for an investment in term bonds that was acquired at a premium?
A. The amortized cost of the bonds increases annually.
B. The current and non current portions of the bonds as of the reporting date are reported separately.
C. The interest income recognized each year is higher than the amount of interest received/ receivable.
D. The effective interest rate is lower than the stated rate of the bonds.
3. The rate used in computing for interest receivable on debt instruments measured at amortized cost is the
A. Nominal rate
B. Effective interest rate
C. Yield rate
D. Celeb rate
4. The transaction costs of acquiring an investment measured at…
17. Statement I: If, at the reporting date, the credit risk of a receivable has not increased significantly since initial recognition, interest revenue is calculated based on the amortized cost of the financial asset. Statement II: 12-month expected credit losses is determined for financial asset which credit risk has not increased significantly since initial recognition Statement III: Lifetime expected credit losses is the weighted average of credit losses with the respective risks of a default occurring as the weights.
a. All statements are correct
b. 2 out of 3 statements are incorrect
c. 1 out of 3 statements are incorrect
d. All statements are incorrect
A credit ending balance in the account Fair Value Adjustment-Trading Debt Securities, after the year-end
adjusting entry, should be interpreted as equal to
the net realized holding loss for that year only.
the net unrealized holding loss since purchasing the Trading portfolio of debt securities.
the net realized holding loss since purchasing the Trading portfolio of debt securities.
the net unrealized holding loss for that year only.
Chapter 16 Solutions
Intermediate Accounting (2nd Edition)
Ch. 16 - Prob. 16.1QCh. 16 - Is reporting an investment at its cost considered...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Prob. 16.5QCh. 16 - Prob. 16.6QCh. 16 - What categories can managers use to classify...Ch. 16 - When is the equity method of accounting for...Ch. 16 - Prob. 16.9QCh. 16 - Can companies apply the fair value option to all...
Ch. 16 - What is the fair value hierarchy for investment...Ch. 16 - Prob. 16.12QCh. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Prob. 16.16QCh. 16 - Prob. 16.17QCh. 16 - Deutsch Imports has three securities in its...Ch. 16 - Prob. 16.2MCCh. 16 - Prob. 16.3MCCh. 16 - Prob. 16.4MCCh. 16 - Prob. 16.5MCCh. 16 - Prob. 16.6MCCh. 16 - Prob. 16.7MCCh. 16 - Prob. 16.1BECh. 16 - Prob. 16.2BECh. 16 - Debt Investments, Trading. Using the information...Ch. 16 - Prob. 16.4BECh. 16 - Prob. 16.5BECh. 16 - Prob. 16.6BECh. 16 - Prob. 16.7BECh. 16 - Prob. 16.8BECh. 16 - Prob. 16.9BECh. 16 - Prob. 16.10BECh. 16 - Prob. 16.11BECh. 16 - Prob. 16.12BECh. 16 - Prob. 16.13BECh. 16 - Notes Receivable. Aaron Anatole accepted a...Ch. 16 - Prob. 16.15BECh. 16 - Prob. 16.16BECh. 16 - Prob. 16.17BECh. 16 - Debt Investments. Impairments. IFRS. For each debt...Ch. 16 - Prob. 16.19BECh. 16 - Prob. 16.1ECh. 16 - Prob. 16.2ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Debt and Equity Investments, Available-for-Sale...Ch. 16 - Prob. 16.9ECh. 16 - Equity Investments without a Readily Determinable...Ch. 16 - Prob. 16.11ECh. 16 - Prob. 16.12ECh. 16 - Prob. 16.13ECh. 16 - Equity-Investments, Equity Method. Book Value of...Ch. 16 - Prob. 16.15ECh. 16 - Prob. 16.16ECh. 16 - Notes Receivable. Each of the following three...Ch. 16 - Notes Receivable. On January 1, 2018, Racine...Ch. 16 - Debt Investment, Held to Maturity, Impairments....Ch. 16 - Debt Investment, Impairments, IFRS. Repeat E16-19...Ch. 16 - Prob. 16.21ECh. 16 - Prob. 16.22ECh. 16 - Prob. 16.23ECh. 16 - Prob. 16.24ECh. 16 - Prob. 16.25ECh. 16 - Prob. 16.1PCh. 16 - Debt Investments, Trading. Freder Software Group...Ch. 16 - Prob. 16.3PCh. 16 - Equity Investments, Readily Determinable Fair...Ch. 16 - Prob. 16.5PCh. 16 - Prob. 16.6PCh. 16 - Prob. 16.7PCh. 16 - Prob. 16.8PCh. 16 - Prob. 16.9PCh. 16 - Prob. 16.10PCh. 16 - Prob. 16.11PCh. 16 - Equity Investments, Equity Method, Fair Value...Ch. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Prob. 16.19PCh. 16 - Prob. 1JCCh. 16 - Prob. 2JCCh. 16 - Prob. 1SSCCh. 16 - Prob. 1BCCCh. 16 - Prob. 2BCC
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