On January 1, 2020 Tako, Inc. purchased 10 year bonds with a…
On January 1, 2020 Tako, Inc. purchased 10 year bonds with a face value $1,000,000 and a stated rate of 3%, paying $1,089,828. Interest is payable January 1st. The premium provides an effective yield of 2%. Tako, Inc. uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2020, should Tako, Inc. increase or decrease the Bond Investment account and by how much?
Read DetailsChangi Co. has the following information related to income t…
Changi Co. has the following information related to income taxes. All items have been properly accounted for in its financial statements. Item Source Amount Income (Loss) Before Income Tax Expense Income Statement $5,000,000 Income Tax Expense Income Statement $1,200,000 Income Tax Payable for the year Footnote $1,500,000 Fine levied (incurred) for illegally polluting Footnote $1,000,000 The income tax rate is 21% for all years. What is Changi Co.’s effective tax rate? (Ignore any minor rounding differences)
Read DetailsOn August 5, 2024, Famous Furniture shipped 40 dining sets o…
On August 5, 2024, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $350. The cost of shipping the dining sets amounted to $1,800 and was paid for by Famous Furniture. On December 30, 2024, the consignee reported the sale of 30 dining sets at $850 each. The consignee remitted payment for the amount due after deducting a 6% commission, advertising expense of $600, and installation and setup costs of $780. The total profit on units sold for the consignor is
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