Let p be the price of the bond.
Annual coupons payment = 85
Par value (future value) is $1000.
So with a yield-to-maturity of 10% in three years,
p(1+10%) = 1000+3*85
solve for p
p=(1000+3*85)/1.10=1140.91
Note: since the coupon payment is not reinvested in the bond, the value is not compounded. Thus there is additional benefit if the payments are reinvested elsewhere. In other words, the yield-to-maturity actually under-estimates the potential yield.
<span>This situation is called a modified rebuy. The buyer may want to modify the price or they may want to look at other options. They might choose a different provider to get the good or service from. This offers the buyer better options.</span>
Answer:
C. Pro Forma Income statement
Explanation:
Pro forma income statement is an estimated income statement. It is a projected income statement created by organizations aimed at preparing both forecast income which is money they hope to recieve and forecast expenditures which are money they expect to spend with considerations of various conditions like market, competition and so on for an estimated period. They are income statements that shows "what ifs" rather than the real income statement. By predicting sales level and so on, Mariana prepare a pro forma income statement.
Answer:
(a) $1,200
(b) $330
Explanation:
(a)
- The advance payment was issued in 2018, however the items throughout 2018 were not shipped.
- The products were distributed throughout 2019 as well as the transaction for accounting information requirements was announced throughout 2019.
Therefore, in 2019, $1200 would include gross revenue
(b)
<u>Service contract for 6 months will be:</u>
Drake would include gross income throughout 2019 of 
($)and gross income throughout 2020 of $120. In October year 2019, because a corporation offered a 6-month contract, total sales in 2019 represented just a 3-month service agreement.
<u>Service contract for 36 months will be:</u>
- Throughout 2019 gross sales, Drake would include
.The residual balance would not have been all conducted until the close including its tax year of collection since the contract became sold through 36 month. - The residual amount of
is thus used throughout gross sales for 2020.
Consequently,
⇒ Cumulative gross income used throughout 2019 = total earnings of 6 months service agreement + gross income of 36 months service agreement
⇒ 
⇒ 
($)
In general, if you have more types of deductions on your tax, the 1040 forms maybe more appropriate for you because it provide you with various options to claim deductions or credit.
The 1040Ez on the other hand only offer a simple format that only beneficial for taxpayers who made certain conditions.
