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Art [367]
3 years ago
8

Franklin Corporation issues $88,000, 10%, five-year bonds on January 1 for $92,000. Interest is paid semiannually on January 1 a

nd July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is
Business
1 answer:
dusya [7]3 years ago
4 0

Answer:

$4,000

Explanation:

The computation of interest expense to be recognized on July 1 is shown below:-

Here the interest is paid in semi-annually,

so, the interest rate per period= 10% ÷ 2 = 5%

and the number of periods = 5 × 2 = 10

Bond premium = Five year bonds - Issued amount

= $92,000 - $88,000

= $4,000

Bond premium amortization per period = Bond premium ÷ Number of periods

= $4,000 ÷ 10

= $400

Interest expense to be recognized on July 1 = Issued amount × Interest rate per period) - Bond premium amortization per period

= ($88,000 × 5%) - $400

= $4,000

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Samuelson has a beginning inventory balance on January 1 of 12,000 units and desires an ending balance of 20% of the next month’
Oduvanchick [21]

Answer:

Production during January= 9000 units

Explanation:

By the following information, we need to calculate the number of units to produce in January:

beginning inventory 12,000 units

Sales January = 17000 units

Sales february= 20000

Ending inventory= 20% of expected sales for next month

Production during January= Sales January + ending inventory - beginning inventory

Production during January= 17000 + 0,20*20000-12000

Production during January= 9000 units

4 0
3 years ago
Read 2 more answers
Which rule requires that contracts that would normally fall under the statute of frauds and need writing if negotiated by the pr
Bezzdna [24]

Answer: The rule that requires that a contract should be written is Equal dignity rule

Explanation:

Equal-dignities rule is a rule in which an agent act according to the authority give ln by the principal. These action are only taken by the agent through following the written authorization.

It is crucial on cases of fraud hence in this rule a contract is considered on in a written form otherwise it may be rejected .

5 0
3 years ago
A client of yours has heard about private equity investing from some wealthy friends and asks you, the registered representative
11Alexandr11 [23.1K]

Answer:

The answer is: Business Development Company (BDC)

Explanation:

Clients have two options for participating in the private equity market:

  • BDC
  • Venture Capital (VC)

The problem with a VC, is that its aimed at very wealthy customers (usually millionaires) and this specific client is not one of those.

So the only possible choice is to invest in a BDC, which are listed investment companies and trade like any other stock.

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3 years ago
Assume that you are a freshman and live in your school's dormitory. The agreement you've signed with the school states that you
andriy [413]

Your agreement with the school best approximates a tenancy for years.

<h3><u>What is tenancy?</u></h3>
  • A legal arrangement known as tenancy in common (TIC) allows two or more persons to jointly hold a piece of real estate or a plot of land.
  • The amount of total property, whether commercial or residential, under the ownership of each independent owner may be equal or different.
  • Tenants in common refers to the parties. One of the three types of joint ownership is tenancy in common.
  • Joint tenancy and entire tenancy are the other two categories. When a tenant in common passes away, their portion of the property falls to their estate, where a beneficiary of the share of property may be named. A TIC has no right of survivorship.

The dormitory agreement has a starting and ending point making it a tenancy for years.

Know more about tenancy with the help of the given link:

brainly.com/question/14399900

#SPJ4

5 0
2 years ago
Holders of common stock receive certain benefits, such as a residual claim, which is the
Elenna [48]
<span>right to share in any remaining assets after creditors have been paid off, should the company cease operations. A residual claim is one benefit that common stock holders can receive. This claim takes effect once the company itself is liquidated. The assets that are left upon liquidation are divided evenly, and the common stock holders receive a proportional part of the assets at liquidation. Among this, common stock holders receive dividends.</span>
7 0
3 years ago
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