Answer:
Explanation:
Discount bonds are issued on discounted price of their face value
Here discount = 11100000-9720000
= 1380000
on 1/07/2016
cash outflow or book value of bond
= 9720000
on 30/06/2017
interest paid = 999000
yield expected = 972000 ( 10% of issue price )
interest amortized
= 999000-972000 = 27000
book value = 9720000 + 27000
= 9747000
on 30/06/2018
interest paid = 999000
yield expected = 974700 ( 10% of book value )
interest amortized
= 999000-974700 = 24300
value amortized = 24300 + 27000 = 51300
book value = 9747000 + 24300
= 9771300
Amount unamortized
1380000 - ( 51300 )
= 1328700
Answer:
10%
Explanation:
The computation of the rate of return during the year is shown below:
Rate of return = (End year investment price - beginning year investment price + additional investment received) ÷ (beginning year investment price)
= ($120,000 - $100,000 + $10,000) ÷ $100,000
= $10,000 ÷ $100,000
= 10%
Simply we applied the above formula so that the rate of return could come
Answer:
Check the explanation
Explanation:
Using the percentage-of-completion method <em><u>(which is an accounting method or technique in which the earnings and expenses of contracts that are of long-term basis are documented as a percentage of the completed work during a particular period.)</u></em>
Total costs = Incurred costs + estimated costs to complete = $8 million + $12 million = $20 million
Revenue to recognize = $8m/$20m*$28m = $11.2 million
Gross Profit = Revenue recognized less costs incurred
= $11.2m - $8m = $3.2 million
Explanation:
The product life cycle can be a tool used by companies to adapt their strategies from the stage of product development to its decline in the market and thus increase the chances of being well positioned and competitive in the market.
In the initial phase of development, this is where the project and ideas are aligned and research is carried out on business feasibility, planning, dissemination, potential audience, budget, etc.
