Answer:
Explanation:
a)
The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.
b)
If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.
c)
Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant
Answer:
Explanation:
The journal entries are shown below:
Taxes expense A/c Dr $12,320
To Prepaid Taxes $12,320
(Being prepaid taxes are adjusted)
Taxes expense A/c Dr $45,000
To Property taxes payable $45,000
(Being property taxes are adjusted)
The prepaid taxes are computed below:
= Prepaid taxes × (number of months ÷ total number of months in a year)
= $18,480 × (8 months ÷ 12 months)
= $12,320
The eight months is calculated from May 1 to December 31
Answer:
Check the explanation
Explanation:
Particulars Amount in $
A. Gross Estate 8600000
Less: deductions (funeral & administrative tax) 70000
B. Taxable estate 8530000
c. Gift-Adjustable Taxable estate value:
Taxable estate 8530000
Charities will be deucted from tax calculation 1000000
gift-adjusted taxable estate value 7530000
D. estate would be subject to tax 7530000
E. estate tax liability Calculated below 876000
For estate more than 53400000 tax will be charged at 40%
So, same is 40% of excess on 53400000
Taxable estate before threshold after deducting 53400000 from estate that would be subject to Tax 2190000
Tax at 40% of excess value 876000
Answer: Option B
Explanation: In simple words, spending multiplier refers to the effect that the spending from the govt have on an economy. As per this effect, if the govt. spends a little on the economy the multiplier effect will come into force and make a major impact on the organisation.
Government spending refers to the total outflow of resources made by the govt. for the betterment of economy. However the decrease in tax will not directly be considered an outflow but it surely does increase their revenue leading to more demand in the economy.
Hence from the above we can conclude that the correct option is B .
Answer:
(a) $200,100
(b) $200,100
Explanation:
The movement in the accounts receivable balance at the start and end of an accounting period is due to cash payments, additional credit sales, and any amount written off during the period.
This may be expressed mathematically as
opening balance + sales - cash collected - amount written off = closing balance
$35,100 + $361,800 - cash collected = $196,800
Cash collected = $35,100 + $361,800 - $196,800
= $200,100
