Asked by
Cesar Segura
on Oct 15, 2024Verified
A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:
A) $(3,000) .
B) $(60,000) .
C) $(57,000) .
D) $7,000.
E) $(7,000) .
Carrying Value
The book value of assets and liabilities on a company's balance sheet, calculated as the original cost minus accumulated depreciation or amortization.
Financing Activities
Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and dividend payments, affecting the company's capital structure.
Bonds
Fixed income investment products that represent loans made by an investor to a borrower, typically corporate or governmental.
- Determine the cash effects of transactions and events related to investing and financing activities.
Verified Answer
AA
Learning Objectives
- Determine the cash effects of transactions and events related to investing and financing activities.