Hooper Corporation has bonds outstanding with a face value of $100,000 and a carrying value of $103,000 on December 31, 2010 . If the company calls in and retires these bonds on December 31, 2010, for $105,000, the entry to record the retirement would be:
a. Bonds Payable 103,000
Cash 103,000
b. Bonds Payable 105,000
Cash 105,000
c. Bonds Payable 100,000
Loss on Retirement of Bonds 3,000
Cash 103,000
d. Bonds Payable 100,000
Loss on Retirement of Bonds 2,000
Unamortized Bond Premium 3,000
Cash 105,000
D
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With the equity method, the investor recognizes its share of the earnings of the subsidiary when the
A) investor sells the investment. B) investee pays a cash dividend. C) investee declares a cash dividend. D) investee reports earnings on its income statement.
In order to effectively revise and proofread a document, you should:?
A) ?avoid using visual enhancements at all times as they clutter the document. B) ?avoid taking suggestions from others on rewriting the document. C) ?revise the document until you find new ways to improve it. D) ?attempt to see things from the audience's perspective.
Based on the information in Table 4-1, and assuming the company's stock price is $30 per share, the
P/E ratio is A) 9.85. B) 10.99. C) 3.09. D) 4.83.
A manufacturer of breakfast cereals has the opportunity to purchase barley at $3.00 a bushel for 10,000 bushels, if it also buys 5,000 bushels of wheat at $16.00 per bushel
However, the manufacturer does not use any barley in its products, and currently needs 20,000 bushels of wheat. If the current market price of barley is $3.80 per bushel and that of wheat is $15.80 per bushel, should this opportunity be taken, and why? A) Because the company has no need of barley, the opportunity should not be taken. B) Because the opportunity does not meet the company's need for wheat, the opportunity should not be taken. C) Because the value of the opportunity is positive, the opportunity should be taken. D) Because the value of the opportunity is negative, the opportunity should not be taken.