(trade date), Francis Cor equity security classified as Financial Assets at FVTOCI for its current fair value of P303,000. The asset was acquired a year ago and its cost was P300,000. On December 31, 2022 (financial year-end), the fair value of the asset is P303,600. On January 5, 2023 (settlement date), the asset's fair value is P303,900. 28, If Francis uses the trade date method to account for regular-way sales of its securities, the net amount to be recognized in 2022 comprehensive income is e. P3,900 f. P3,600 g. P3,000 h. PO If Francis uses the settlement date method to account for regular-way sales of its securities, the net amount to be recognized in 2023 comprehensive income is e. P3,900 f. P3,600 g. P3,000 h. PO
Q: The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal…
A: Here, To Find: Interest paid in month 37 =?
Q: Topic: Option Pricing When computing, please do not round off. Only final answers must be rounded…
A: Black Scholes model This model is used to value options that have volatility. With stock price (S),…
Q: W of the following engineering project when the MARR IS 1 project acceptable? Investment cost =…
A: Present worth is the difference between the present value of cash inflows and cash outflows. it must…
Q: The Taylor Mountain Uranium Company currently has annual revenues of Sh.1.2 million and annual…
A: The NPV of a project is used as a measure of its profitability and takes into account the time value…
Q: xplain why finance is both a science and an ar
A: Finance is very vast and complex field and there are many complexities involved in that and it is…
Q: Locus Dominico, Company., a highly profitable maker of customized boats, is planning to introduce a…
A: As per the given information: Cost of Equipment - Sh.900,000 Freight and installation costs -…
Q: What is the firm’s return on equity?
A: As per du point Analysis, ROE = Net profit margin*Total Asset turnover*Equity multiplier
Q: a) A company is considering investing in Project X. The project requires an initial investment of…
A: NPV is a capital budgeting techniques which help in decision making on the basis of future cash…
Q: i) Calculate the net present value (NPV) of the project. You must use the annuity formulas when…
A: Net present value (NPV) of an alternative/project refers to the difference between the initial…
Q: Find the monthly house payment necessary to amortize the following loan. In order to purchase a…
A: Annuity (periodic payment) refers to an amount or stream of equal cash flows (CF) paid or received…
Q: anaka Machine Shop is considering a 4-year project to improve its production efficiency. Buying a…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: A challenge we run into when forecasting future stock returns is that stock returns compound. So,…
A:
Q: A stock analyst at JP Dealers believes that a stock will earn the following returns next period…
A: To Find: Expected return
Q: How many years will it take for $500 to grow to $1039.50 if it's invested at 5 percent…
A: FV or Future value = PV or present value * (1+interest rate)^n To solve for n we can use the NPER…
Q: Kirk Van Houten, who has been married for 24 years, would like to buy his wife an expensive…
A: FV or Future value = PV or Present value * (1+i)^n where i is the interest rate and n is the…
Q: Anna-Mae Inc is expected to pay a common stock dividend of $0.72 per share next quarter, and…
A: As per the given information: Common stock dividend - $0.72 per share next quarter Growth rate -…
Q: Mrs. Lang Chua purchased a Bike at $845,000. She paid a down payment of $50,000 and promised to pay…
A: Present Value: The present value is the present sum of a series of fixed payments. The series of…
Q: A $1,000 par value, 1.0% annual coupon with a maturity in 13 years currently sells for $ 875. What…
A: Current yield = Annual coupon/Bond price YTM is the yield earned when the bond id held to maturity.…
Q: bond with a face value of $4,000 pays quarterly interest of 1.5 percent each period. Twenty-six…
A: Price of bond is present value of coupon payments and present value of par value of bond taken on…
Q: ) Nancy takes out a 22-year home loan. She makes equal month-end repayments including the principal…
A: Loans are paid by the equal monthly installment and these carry the payment for interest rate and…
Q: why should investors consider constructing global portfolios?how do currency fluctuation concern s…
A: Global portfolios mean- Purchase share of foreign company or companies. Purchase bonds issued by a…
Q: The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its…
A: Yield on debt can be calculated by using this equation Yield on debt =Coupon debtDebt valuen -1
Q: Using the annuity formula find the total profit earned in the first 10 years where the company…
A: This is a case of a growing annuity. Hence we will use the formula of present value of growing…
Q: A disadvantage of shares as security is that a) the lender is required to register the certificate…
A: Share as security A share of equity in an entity, such as the capital stock of a corporation,…
Q: Triangular Chemicals has total assets of $95 million, a return on equity of 44%, a net profit margin…
A: Net profit margin is the net income generated by the sales revenue of the firm for a specified…
Q: Computer Sciences Corporation provides software security systems for airports. It wants to have $85…
A:
Q: A 3,000,000 peso loan is to be amortized at 4.55% quarterly for 2 years. Solve for the value inside…
A: Amortization schedule: Loan amortization plans are frequently used in connection with installment…
Q: A stock will provide a rate of return of either -18% or 26%. If both possibilities are equally…
A: Standard deviation is measure of risk and it measures the deviation from mean of the return and how…
Q: three call options for wheat. The option has 10 tons of wheat as the underlying asset and P12,100…
A: *Answer: Call option is a derivative contract in which option buyer has right to buy the…
Q: termine the value of side of that makes the two cast-now diag 0 $1,150 1 $1,150 3 2 End of Year…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: 9 Development costs of a new product are estimated to be $100,000 per year for five years. Annual…
A: The present value denotes the actual amount of profit a project can make by discounting the cash…
Q: If the total depreciation on year 7 is 34,582 and the book value on the same year is 181,631 and the…
A: Straight-line method SLM is computed by dividing the discrepancy between the cost of an asset and…
Q: 125,000 Province of Ontario 50-year bond issued on March 1, 1995, carries at 9.5% coupon. Amy…
A: Price of bond is the present value of coupon payments and present value of par value of bond taken…
Q: Jane makes regular (end of term) deposits into her RRSP (Registered Retirement Savings Plan) that…
A: The concept of the time value of money(TVM) is working on the purchasing power capacity of money…
Q: Contract size (in number of shares) Current market value of an ABC Inc. share Exercise price for an…
A: Given: Particulars Current stock price 78.25 Standard deviation 36% Risk free rate 6.00%…
Q: Alberta Capital Finance Authority issued a 20-year $100,000 bond on December 15, 2005, with a coupon…
A: Price of bond is the present value of coupon payment and present value of par value of bond on the…
Q: Having inaccurate financial statements that can harm society would correspond with the ethical…
A: Financial statement: The income statement, cash flow statement, and balance sheet. Footnotes on…
Q: A project has an initial cash outflow followed by three annual positive cash inflows and has a…
A: NPV is a Capital budgeting techniques which help in decision making on the basis of future cash…
Q: Stock in Eduardo Industries has a beta of .92. The market risk premium is 7.2 percent, and T-bills…
A:
Q: Drillmaster Sdn Bhd has developed a powerful new hand drill that would be used for woodwork and…
A: Note: The question provides different discount rates for different coefficients of variation. The…
Q: Suppose that you earn $45,600 per year. What is your monthly salary? Assume that you deposit 10% of…
A: Future value of annuity The future value of annuity refers to the total value of the investment at…
Q: Compute the price of the bonds based on semiannual analysis.
A: Bond: It is one of the debt security issued by the firm (issuer) to raise capital from the…
Q: Compute all earnings and dividends for years 1 through 3.
A: EPS shows how much money a company makes for each share. The dividend is the distribution of the…
Q: With the growing popularity of casual surf print clothing, two recent MBA graduates decided to…
A: Data given: No. of unit sold (1st yr) = 12000 Sales growth =8% each year for next 5 years Net…
Q: Use the following data for the next three questions: Line of Business Paint Hair dye Chalk Widgeta…
A: Herfindahl index show how much is market share and how market share is concentrated and how is…
Q: The management of a conservative firm has adopted a policy of never letting debt exceed 30 percent…
A: Share price: Share price is the current market price of the share. It is the price of the share at…
Q: Present-value comparison) You are offered $100,000 today or $340,000 in 15 years. Assuming that…
A: We need to calculate the present value of both the alternative in order to understand which…
Q: Which of the following will (holding everything else constant) cause the price earnings (P/E) ratio…
A: The price to earning ratio is the ratio of current market price with respect to the earning per…
Q: You ask someone about their preferences over the following pairs of lotteries: Lottery A Lottery B…
A:
Q: answer these two questions. Thank you! 1. Determine the compound interest rate per year equivalent…
A: Simple interest rate is interest rate without the impact of compounding of interest. But effective…
Step by step
Solved in 2 steps with 2 images
- Zagat Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company aluminum ingots. As part of the agreement, Zagat also agrees to repurchase the ingots on May 1, 2020, at the original sales price of $200,000 plus 2%. Instructions a. Prepare Zagat's journal entry necessary on March 1, 2020. b. Prepare Zagat's journal entry for the repurchase of the ingots on May 1, 2020.On December 28, 2022, Anne Company commits itself to purchase a financial asset to be classified as held for trading for P800,000, its fair value on commitment (trade) date. This security has a fair value of P801,000 and P802,500 on December 31, 2022 (Anne's financial year-end), and January 5, 2023 (settlement date), respectively. 13. If Anne applies the trade date accounting method to account for regular-way purchases of its securities, how much should gain be recognized on January 5, 2023? e. P800,000 f. P1,500 g. P1,000 h. POOn January 1, 2020 ABC Company sold a machinery to XYZ Company for P1,900,000. Because of the entity's commitments to its customers to provide their needs for the next four years, ABC simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under PFRS 15. Information relating to this transaction follows: Fair value of the machinery Carrying amount of machinery Remaining useful life of machinery Lease term 2,200,000 1,700,000 8 years 5 years 500,000 10% Annual rent payable at the end of each year Market rate of interest Present value of 1 at 10% for four periods Present value of an ordinary annuity of 1 for four periods 0.6830 3.1699 Required: Gain on sale and leaseback
- On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because of the entity’s commitments to its customers to provide their needs for the next three years, Globe Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:• Fair value of machinery- P2,200,000• Carrying amount of machinery- P1,700,000• Remaining useful life of the machinery- 8 years• Lease term- 3 years• Annual rent payable at the end of each year, starting on December 31, 2021- P500,000• Market rate of interest- 10%• PV of an ordinary annuity of 1 at 10% for 3 periods is 2.4869• PV of an annuity due of 1 at 10% for 3 periods is 2.7355 How much is the gain on sale-leaseback? (round off your final answer to the nearest peso value)On Jan. 1, 2022, ABC Co. sold a machinery to XYZ Co. for P1,900,000. Because of the entity's commitments to its customers to provide their needs for the next 4 years, ABC simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:FV of machinery, P2,200,000CA of machinery, P1,700,000Remaining useful life of machinery, 6 yearsLease term, 4 yearsAnnual rent payable at the end of each year, P500,000Market rate of interest, 10%PVF, ordinary annuity, 10%, 4 periods, 3.1699PVF, ordinary annuity, 10%, 6 periods, 4.3553PVF, single payment, 10%, 4 periods, 0.6830PVF, single payment, 10%, 6 periods, 0.5645What amount of lease liability should ABC record on Jan. 1, 2022?On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because of the entity’s commitments to its customers to provide their needs for the next three years, Globe Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:• Fair value of machinery- P2,200,000• Carrying amount of machinery- P1,700,000• Remaining useful life of the machinery- 8 years• Lease term- 3 years• Annual rent payable at the end of each year beginning, December 31, 2021- P500,000• Market rate of interest - 10%• PV of an ordinary annuity of 1 at 10% for 3 periods is 2.4869• PV of an annuity due of 1 at 10% for 3 periods is 2.7355 How much is the lease liability recorded on January 1, 2021?
- On June 1, 2023, Redwood Manufacturin Co. sold equipment to Caramel Company in exchange for a zero-interest bearing note with a face value of $110,000, with paynent due in 12 months. The fair value of the equipment on the date of the sale was $100,000. The amount of revenue to be recognized on this transaction in 2023 isOn January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because of the entity’s commitments to its customers to provide their needs for the next three years, Globe Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:• Fair value of machinery- P2,200,000• Carrying amount of machinery- P1,700,000• Remaining useful life of the machinery- 8 years• Lease term- 3 years• Annual rent payable at the end of each year beginning, December 31, 2021- P500,000• Market rate of interest- 10%• The present value of an ordinary annuity of 1 at 10% for 3 periods is 2.4869. • The present value of an annuity due of 1 at 10% for 3 periods is 2.7355 How much is the interest expense for 2021 on the lease liability relating to the right retained in the sale-leaseback transaction? (round off your final answer to the nearest peso value)On January 1, 2021, Moo Company sold an asset with a carrying amount of P6,000,000 to Boo Company for P8,000,000. The asset had a fair value of P7,500,000 and a remaining useful life of six years. The asset was immediately leased back to Moo Company for a term of four years and annual rentals of P1,500,000 payable every yearend. The transfer qualified for as a sale and the lease was accounted for as a finance lease with an implicit interest rate of 12%. How much is the 2021 net income/loss of Moo Company relating to the sale and leaseback transaction? [Indicate whether it is a gain or loss] How much is the 2021 net income/loss of BooCompany relating to the sale and leaseback transaction? [Indicate whether it is a gain or loss] How much is the carrying amount of Moo Company's asset as of yearend 2021? How much is the 2022 net income/loss of Moo Company relating to the sale and leaseback transaction? [Indicate whether it is a gain or loss] How much is the 2022 net income/loss of Boo…
- On January 1, 2021, Smith Company sold a piece of machinery to Gaby Company for P1,900,000. Because of the entity's commitments to its customers to provide their needs for the next three years, Smith Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows: Fair value of machinery - P2,200,000 Carrying amount of machinery - P1, 700,000 Remaining useful life of the machinery - 8 years Lease term - 3 years Annual rent payable at the end of each year beginning, December 31, 2021- P500,000 Market rate of interest - 10% The present value of an ordinary annuity of 1 at 10% for 3 periods is 2.4869 The present value of an annuity due of 1 at 10% for 3 periods is 2.7355 1. How much is the gain on sale-leaseback? (round off your final answer to the nearest peso value)Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8 years ending December 31, 2027. The first payment happened on January 1, 2020 amounting to P900,000. Buttercup Company had previously purchased the equipment for P4,800,000 from a supplier that Buttercup has been transacting with in the past years. Buttercup has been selling the same property on its ordinary course of business. The present value on January 1, 2020 of all rent payments over the lease term discounted at a 10% interest rate was P5,280,000. What amount of unearned interest revenue should be recognized as realized in 2021?On January 1, 2021, Smith Company sold a piece of machinery to Gaby Company for P1,900,000. Because of the entity's commitments to its customers to provide their needs for the next three years, Smith Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows: Fair value of machinery - P2,200,000 Carrying amount of machinery - P1, 700,000 Remaining useful life of the machinery - 8 years Lease term - 3 years Annual rent payable at the end of each year beginning, December 31, 2021- P500,000 Market rate of interest - 10% The present value of an ordinary annuity of 1 at 10% for 3 periods is 2.4869 The present value of an annuity due of 1 at 10% for 3 periods is 2.7355 1. How much is the interest expense for 2021 on the lease liability relating to the right retained in the sale-leaseback transaction? (round off your final answer to the nearest peso value)…