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##### 9) On December 31 year 1 Todd Corporation issued 5...

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9) On December 31 year 1 Todd Corporation issued 500 of its 10% \$1,000 bonds at 105. Todd Corporation uses IFRS. The bonds were issued through an underwriter to whom Todd paid bond issue costs of \$15,000. On December 31 Year 1 balance sheet Todd should report the bond liability at A) \$500,000 B) \$510,000 C) \$515,000 D) \$525,000 10) Dean manufacturing is planning to construct expanded facilities and will finance a portion of its new plant with proceeds from the sale of its current plant. To ensure that its operations will not be interrupted, Dean will sell its current plant and lease it back for the estimated 2 year construction period of its new facilities. Deans current plant is estimated to have a useful life of 25 years. Dean bought the plant 9 years ago for \$200,000 and the asset has an accumulated depreciation of \$140,000. Dean signed an agreement to sell the plant for \$350,000 January 1 year 10 and Lease it back for \$15,000 per year, deans incremental borrowing rate is 6%. Present value factors for annuity 2 years- 6% =1.833 23years-6%=12.303 25 years-6%=12.783 Dean uses GAAP On its December 31, year 10 financial statements Dean will defer Gain on the sale of its current plant in the amount of? A) \$290,000 B) \$262,505 C) \$27,495 D) \$0,Thank you, thank you! I have some more questions below, if that is OK :) F71) Big Brown Corporation's derivative instruments had the following fair values at December 31, Year 1 and December 31, Year 2: 12/31/Year 1 12/31/Year 2 Speculative derivatives \$280,000 \$310,000 Derivatives used as fair value hedges \$600,000 \$745,000 Derivatives used as cash flow hedges \$430,000 \$510,000 The derivatives used as fair value hedges and cash flow hedges were both considered highly effective in 20X7. What amount of gain from these derivative investments should Big Brown report in its Year 2 net income and other comprehensive income? Net income OCI A. \$0 \$255,000 B. \$80,000 \$175,000 C. \$175,000 \$80,000 D. \$255,000 \$0 F72) Division Corporation has 20,000 shares of \$5.00 participating 9 percent cumulative preferred stock and 100,000 shares of \$2.00 common stock. On July 1, the board of Division declared a \$30,000 dividend at the time the common stock was selling for \$25 per share and the preferred stock was selling for \$30. The total dividends paid to each class of stock on the payment date was: Preferred Common A. \$10,000 \$20,000 B. \$16,000 \$14,000 C. \$12,500 \$17,500 D. \$9,500 \$20,500 F73) Kuchman Kookware issued 40,000 shares of its \$8.00 par value common stock for \$9 on January 1, Year 1. Kuchman repurchased 1,000 shares at \$8 per share on April 1, Year 2, resold 500 shares at \$9 per share on July 1, Year 2, and, on October 1, Year 2, resold the final 500 shares at \$5 per share. Assuming Kuchman uses the par value method of accounting for its treasury stock, retained earnings at December 31, Year 2 would be reduced by: A. \$0 B. \$500 C. \$1,000 D. \$1,500,Is there a way to make sure that it gets to you specifically?

Paper#9271 | Written in 18-Jul-2015

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