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prisoha [69]
1 year ago
7

a 1000 par value 18-year bond with annual coupons is bought to yield an annual effective rate of 5%. the amount for amortization

of premium in the 10th year is 20. the book value of the bond at the end of year 10 is x. calculate x.
Business
1 answer:
marta [7]1 year ago
3 0

The book value of the bond at the end of year 10 is 1,160

What is the basis for determining premium amortization?

The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.

Total premium on bond issuance=20*18

total premium on bond issuance=360

bond price issued price=par value+ premium=1000+360=1360

As at the end of the 10th year, bond premium amortized thus far is 20 multiplied by 10 years

bond premium amortized=20*10=200

book value of the bond at the end of year 10=1360-200

book value of the bond at the end of year 10=1,160

Find out more about bond premium on:brainly.com/question/14814327

#SPJ1

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A good group decision-making approach when the objective is to make sure that every person’s idea is heard is:
Dimas [21]

Answer:

Nominal group technique which is sometimes denoted as NGT is type of decision making approach that first step include identification of problems and then resolve them.

Explanation:

Nominal group technique which is sometimes denoted as NGT is type of decision making approach that first step include identification of problems and then resolve them.

This type of approach want every single member involvement and their ideas to be share among the present group. The  main advantage of this approach is that it include every individual participation, chaos or noise between the discussion is less.

3 0
3 years ago
The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $88 million.
Alinara [238K]

It can be deduced that the cash flow shows that the net cash provided by operating activities will be $58 million.

<h3>How to compute the statement of cash flow</h3>

<u>Cash flow from operating activities</u>

Net income = $54 million

Add: Depreciation $15 million.

Add: Bad debt = $6 million

Add: Amortization expense = $3

<u>Changes in operating assets and liabilities</u>

Decrease in account receivable = $4 million

Increase in inventory = ($9 million)

Increase in prepaid expense = ($2 million)

Decrease in account payable = ($10 million)

Decrease in accrued liability = ($3 million)

Net cash provided by operating activities = $58 million

In conclusion, the net cash provided by operating activities is $58 million.

Learn more about cash flow on:

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8 0
2 years ago
Durango, Inc. purchased a parcel of land for $450,000. It paid attorney fees of $3,000 to verify title to the land. In addition,
Crank

Answer:

D. $460,500

Explanation:

Given that

Cost of parcel of land = 450000

Legal fees = 3000

Broker's fees = 7500

Therefore,

Amount recorded as cost of parcel of land is

Cost of parcel of land + legal fees + brokers fee

= 450000 + 3000 + 7500

= $460,500

When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.

8 0
2 years ago
Read 2 more answers
Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow
earnstyle [38]

Answer:

The expected year-end free cash flow is $2.44 million

Explanation:

The formula to compute free cash flow is shown below:

Value of operations = (free cash flow) ÷ (weighted average cost of capital - growth rate)

$57.50 million = free cash flow ÷ (10.25% - 6.00%)

$57.50 million = free cash flow ÷ 4.25%

So, free cash flow equal to

=  $2.44 million

The growth rate should always be deducted from the weighted average cost of capital in computing the year ending free cash flow.

6 0
3 years ago
Charles is a single person, age 35, with no dependents. In 2015, Charles has gross income of $75,000 from his sole proprietorshi
r-ruslan [8.4K]

Answer:

The correct answer is $7,650.

Explanation:

According to the scenario, the computation of the given data are as follows:

Gross income from business               $75,000

 Business deductions (Less)                $80,000

Interest and dividend income (Add)    $22,000

Gross income                                        $17,000

Standard deduction (Less)                   $5,700

Exemption (Less)                                  $3,650

Net  Taxable income                             $ 7,650

So, the net taxable income is $7,650.

6 0
3 years ago
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