It is December 2019. Google has offered to buy your internet startup. The Google negotiators and you both agree on the following expectations.

After 2024, cash flows are expected to grow by 5% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 15%.

You have bank loans worth $400,000 outstanding.

What is the horizon value, i.e., the present value of all free cash flows from 2025 to infinity expressed in 2024-dollars?

What is the total value of the company?

What is the value per share of common stock if you have 100,000 shares outstanding?

Consider the differences between the standard deduction vs. itemized deduction given the filing status. In addition, compare and contrast deductions for AGI and deductions from AGI (itemized deductions).

On January 1, 2020, Oriole Company purchased 11% bonds, having a maturity value of $328,000 for $353,515.61. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Oriole Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

2020
$351,400      
2023
$338,100
2021
$337,000      
2024
$328,000
2022
$336,000              

(a)       Prepare the journal entry at the date of the bond purchase.
(b)       Prepare the journal entries to record the interest revenue and recognition of fair value for 2020.
(c)       Prepare the journal entry to record the recognition of fair value for 2021.

On January 1, 2020, Bonita Company sold 12% bonds having a maturity value of $650,000 for $699,280, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Bonita Company allocates interest and unamortized discount or premium on the effective-interest basis.

Prepare a schedule of interest expense and bond amortization for 2020–2022. (Round answer to 0 decimal places, e.g. 38,548.)

ASC 410 -20 – Asset Retirement Obligations: Problem

Fairfax Inc. is legally responsible for decontamination procedures associated with operating a chemical plant it

acquired on January 1, 2001 for $60,000,000. The acquisition cost was attributed as follows: $54,000,000 for the

plant and $6,000,000 for the land. The future cash flows for decontamination were analyzed and estimated to be

$6,772,780. The credit-adjusted risk-free rate is 5%. The expected useful life of the plant is 25 years. At the end of

its useful life and after decontamination, the plant should be worth $4,000,000 (not including the value of the land).

1. Provide all necessary journal entries for 12/31/2025. Assume that the entity settles its asset retirement obligation by incurring decontamination costs of $7M and disposing the plant and land for $8M. (3 Journal Entries):

On January 1, 2020, Riverbed Company purchased 12% bonds, having a maturity value of $276,000 for $296,924.88. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Riverbed Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $294,800 2023 $286,100 2021 $285,000 2024 $276,000 2022 $284,100 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021.

The Red Company purchased equipment on June 1, 2020.  Assuming the cost of the equipment is $66,000, the residual value is $6,000, a useful life of 5 years and the use of the straight line method. The company's year end is December 31.

1) What is depreciation expense at December 31, 2020? $ Answer

2) What is accumulated depreciation at December 31, 2022? $ Answer

3) What is the carrying value of the asset at December 31, 2023? $ Answer

4) What is the carrying value of the asset at January 1, 2024? $ Answer

5) What is depreciation expense at December 31, 2025? $ Answer

You were asked to prepare the journal entry to record the sale of the above equipment on December 31, 2022.  

Is it a gain or loss if the equipment was sold for $30,000? Answer

How much is the gain or loss? $ Answer

On January 1, 2020, Larkspur Company purchased 12% bonds, having a maturity value of $275,000 for $295,849.07. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Larkspur Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

On March 1, 2019, Ford Co. issued $1,000,000, 12% bonds at a price to yield 10%. The bonds pay interest semi-annually on September 1 and March 1. Bond issue costs of $30,000 were incurred and expensed by Ford Co. The bonds mature on March 1, 2025. The company has a September 30 year-end date.

Show the income statement and balance sheet presentation for the related bond accounts at September 30, 2019 for Ford Co.

Issue price of the bonds
n = 12 6 years x 2 i/y= 5 PMT = - 1,000,000 x 12% x 6/12 60,000 - FV = 1,000,000 - PV= $1,088,633

May I have the full step by step calculation for the Amortization schedule?

1. The December 31, 2016, statement of financial position of Cotton Corporation includes the following:

9% bonds payable due December 31, 2025     $718,900

The bonds have a face value of $700,000 and were issues on December 31, 2015, at 103, with interest payable on July 1 and December 31 of each year. Cotton uses straight-line amortization to amortize bond premiums or discount. On March 1, 2017, Cotton retired $280,000 of these bonds at 98 plus accrued interest. Ignoring income taxes, what should cotton record as a gain on retirement bonds?

1. $7,560
2. $13,020
3. $13,160
4. $14,000

1. Direct incremental costs incurred to sell shares, such as underwriting costs, should be accounted for as:

1. a reduction of share capital
2. an expense of the period in which the shares are issued
3. an intangible asset
4. a reduction of retained earnings