Details of this Paper

What is the amount of interest income for the year ended December 31, 2012

Description

solution


Question

The following information pertains to Pilko Company Inc.?s investment in bonds available for sale;Date;Acquired;Cost;Fair;Value;December 31, 2012;January 1, 2012;$90,000;$120,000;?&&????;????;????;????;????;The bonds have a face value of $100,000.;?&&????;????;????;????;????;The bonds pay interest annually at December 31 (8 percent annual interest) and are due in ten years.;?&&????;????;????;????;????;Pilko Company uses the straight-line method to amortize discounts or premiums.;?&&????;????;????;????;????;Pilko Company?s 2012 net income after considering the effects of the investment was $200,000.;What is the amount of interest income for the year ended December 31, 2012?;$8,000;$7,000;$7,200;$9,000

 

Paper#25265 | Written in 18-Jul-2015

Price : $22
SiteLock