72,800 gain should be recognised on this bond retirement
Solution:
Bond redemption applies to repurchases of newly sold debt by creditors. If the bonds have been issued, the borrower excludes the debt due in its accounts at the expected maturity of those instruments.
Paid at redemption : $1,000,000 * 102 = 1,020,000
Book value: $1,000,000 + $92,800 = 1,092,800
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Gain on bond retirement = 72,800
Answer:
Increase
Explanation:
A closed economy is a country with no export or imports or any form of international trade and thus is completely self sufficient. When a country with closed economy decides to engage in international trade and becomes a net exporter, that is, it sells more to foreign countries than they import, the general price level of the good traded increases.
Answer:
a. $800
b. $1,000
Explanation:
In this case, the opportunity cost of holding the money instead of buying a U.S. Treasury bond is determined as the yearly interest payed by the bond.
a. interest rate = 8%
The opportunity cost of keeping the $10,000 is:
b. interest rate = 10%
The opportunity cost of keeping the $10,000 is:
Answer: E. objective and task
Explanation: This is simply the objective and task method of budgeting which uses a build-up approach and defines clearly the communication objectives to be accomplished (isolating advertising objectives) and the estimation of the associated costs of the performance of the required strategies and activities to achieve the communication objectives. This method of budgeting, however, is most difficult to use when the product to be promoted is new to the market.
Answer:
B
Explanation:
<u>The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies increase aggregate demand while contributing to deficits or drawing down of budget surpluses. They are typically employed during recessions or amid fears of one.</u>
