What was the effect of W's purchase of XYZ's bond on the noncontrolling interest amount reported in XYZ's March 31, year 1 consolidated balance sheet?
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ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year 1, and then sold the bonds to W, Inc. for P975,000. On that date, XYZ, a 75% owner of W had P1,075,000 carrying amount for the bonds.
What was the effect of W's purchase of XYZ's bond on the noncontrolling interest amount reported in XYZ's March 31, year 1 consolidated balance sheet? (Answer format: amount increase/decrease e.g. 10000 decrease, if no effect, just type 0)
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- 4. ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year 1, and then sold the bonds to W, Inc. for P975,000. On that date, XYZ, a 75% owner of W had P1,075,000 carrying amount for the bonds. What was the effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's March 31, year 1 consolidated balance sheet? 5. What was the effect of W's purchase of XYZ's bond on the noncontrolling interest amount reported in XYZ's March 31, year 1 consolidated balance sheet? (Answer format: amount increase/decrease e.g. 10000 decrease, if no effect, just type 0)Cullumber Company purchased $3050000 of 9%, 5-year bonds from Vaughn, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $3173740 at an effective interest rate of 8%. Using the effective-interest method, Cullumber Company decreased the Available-for-Sale Debt Securities account for the Vaughn, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10720 and $11080, respectively.At April 1, 2022, Cullumber Company sold the Vaughn bonds for $3140000. After accruing for interest, the carrying value of the Vaughn bonds on April 1, 2022 was $3147440. Assuming Cullumber Company has a portfolio of Available-for-Sale Debt Securities, what should Cullumber Company report as a gain or loss on the bonds? $-7440. $-123740. $-21800. $ 0.Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1, 2022, with interest payable on July 1 and January 1. The bonds sold for P520,790 at an effective interest rate of 7%. Using the effective-interest method, Landis Co. decreased the Debt Investments account for the Ritter, Inc. bonds on July 1, 2022 and December 31, 2022 by the amortized premiums of P1,770 and P1,830, respectively. At December 31, 2022, the fair value of the Ritter, Inc. bonds was P530,000. What should Landis Co. report as other comprehensive income and as a separate component of equity?
- Pharoah Company purchased $3200000 of 9%, 5-year bonds from Wildhorse, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $3320740 at an effective interest rate of 8%. Using the effective-interest method, Pharoah Company decreased the Available-for-Sale Debt Securities account for the Wildhorse, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $11020 and $11380, respectively.At April 1, 2022, Pharoah Company sold the Wildhorse bonds for $3290000. After accruing for interest, the carrying value of the Wildhorse bonds on April 1, 2022 was $3297440. Assuming Pharoah Company has a portfolio of Available-for-Sale Debt Securities, what should Pharoah Company report as a gain or loss on the bonds?Wildhorse Company purchased $1290000 of 8%, 5-year bonds from Blossom, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1339896 at an effective interest rate of 7%. Using the effective interest method, Wildhorse Company decreased the Available-for-Sale Debt Securities account for the Blossom, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $5148 and $5292, respectively.At December 31, 2021, the fair value of the Blossom, Inc. bonds was $1353000. What should Wildhorse Company report as other comprehensive income and as a separate component of stockholders’ equity? $0 $23544 $10440 $13104On July 1, 2021, Rebecca Company, a medium-sized entity, purchased P3 million face, 8%, 5-year bonds for P3,251,880. The effective rate o the bon is 6%. The bonds are dated July 1, 2021 and pays interest every June 30. The company has a business model of buying and selling in order to make profits for all debt securities. What is the total interest income to be recognized by Rebecca in its December 31, 2021 profit or loss?
- Crane Company purchased $1190000 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 $1239996 at an effective interest rate of 7%. Using the effective interest method, Crane 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 $4148 and $4292, respectively.At February 1, 2022, Crane Company sold the Carlin bonds for $1225900. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1230500. Assuming Crane Company has a portfolio of available-for-sale debt investments, what should Crane Company report as a gain (or loss) on the bonds? $0. $-14096. $-4600. $-9496.Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $3516740 at an effective interest rate of 7%. Using the effective-interest method, Sandhill Company decreased the Available-for-Sale Debt Securities account for the Blue, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $11420 and $11780, respectively.At April 1, 2022, Sandhill Company sold the Blue bonds for $3490000. After accruing for interest, the carrying value of the Blue bonds on April 1, 2022 was $3497440. Assuming Sandhill Company has a portfolio of Available-for-Sale Debt Securities, what should Sandhill Company report as a gain or loss on the bonds? $-23200. $-7440. $ 0. $-116740.Blossom Company purchased $1300000 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 $1348896 at an effective interest rate of 7%. Using the effective interest method, Blossom 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 $5248 and $5392, respectively.At February 1, 2022, Blossom Company sold the Carlin bonds for $1337000. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1340500. Assuming Blossom Company has a portfolio of available-for-sale debt investments, what should Blossom Company report as a gain (or loss) on the bonds? $-8396. $0. $-11896. $-3500.
- Blossom Company purchased $1180000 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 $1230096 at an effective interest rate of 7%. Using the effective interest method, Blossom Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortízed premiums of $4048 and $4192, respectively. At February 1, 2022, Blossom Company sold the Carlin bonds for $1215800. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1220500. Assuming Blossom Company has a portfolio of available-for-sale debt investments, what should Blossom Company report as a gain (or loss) on the bonds? $-4700. $0. $-9596. $-14296.On January 1, 2023, Pronghorn Limited pays $105,753 to purchase $110,000 of Chan Corporation 9% bonds. The market rate of interest at the time was 10%. Pronghorn accounts for this investment at amortized cost using the effective interest method. The bonds mature on January 1, 2028, and interest is payable each July 1 and January 1. Note that the bond is acquired on an interest payment date and there is therefore no accrued interest for Pronghorn to pay on January 1. Pronghorn has an August 31 year end (a) * Your answer is incorrect. Calculate the amortization of the discount per month using the straight-line method. (Round answer to 2 decimal places, eg 125.55) SUPPORRell Corporation reports under IFRS No. 9. Rell has an investment in Tirish, Inc. bonds that Rell accounts for atamortized cost, given that the bonds pay only interest and principal and Rell’s business purpose is to hold the bondsto maturity. Rell purchased the bonds for €10,000,000. As of December 31, 2018, Rell calculates €750,000 ofcredit losses expected for default events occurring during 2019 and €450,000 of credit losses expected for defaultevents occurring after 2019. Required:1. Assume the Tirish bonds have not had a significant increase in credit risk. Prepare the journal entry to recordany impairment loss as of December 31, 2018.2. Assume the Tirish bonds have had a significant increase in credit risk. Prepare the journal entry to record anyimpairment loss as of December 31, 2018.3. Assume the Tirish bonds have not had a significant increase in credit risk, and that as of December 31, 2019,Rell calculates €650,000 of credit losses expected for default events occurring during…