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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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Answer:

Explanation:

1. Calculate ending inventory        Rate per unit       Total cost

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Beg bal (April1)  450                         2.19                       985.50

Add:purchases  

April 20             410                            2.69                      1102.90

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Total goods

av for sale         860                                                          2088.40

Less: Sales:

During April       590

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Ending inventory 270

2. Cost of ending inventory = 270*2.19=$591.3

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Orlin purchases a refrigerator, on credit, from a door to door salesman. Orlin only has a 5th grade education, and the terms of
mote1985 [20]

Answer: the doctrine of unconscionability

Explanation:

The doctrine of unconscionability is a defense that is against enforcing a contract. From the question, we are informed that Orlin bought a refrigerator, on credit, from a salesman and the salesman want him to pay 10 times the worth of the refrigerator.

In this scenario, the contract is deemed to be unfair and also oppressive to Orlin, thus he a find it unconscionable and therefore he can refuse to enforce it. Therefore, if he wants to challenge the contract’s terms, the doctrine of unconscionability will be used.

6 0
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dditional Information Accrued sales salaries amount to $2,400. Prepaid selling expenses of $2,100 have expired. A physical count
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Answer:

A) Adjusting entries:

Dr Sales salaries expense 2,400

    Cr Sales salaries payable 2,400

Dr Selling expenses 2,100

    Cr Prepaid selling expenses 2,100

Dr Cost of goods sold 3,700

    Dr Merchandise inventory 3,700

B) prepare the closing entries

Dr Sales revenue 550,900 (net = $557,000 - $19,900 - $6,200)

    Cr Income summary 550,900

Dr Income summary 484,200

    Cr Cost of goods sold 239,700 (net = $236,000 + $3,700)

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Dr Retained earnings 45,000

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7 0
3 years ago
Marginal​ cost-benefit analysis and the goal of the firm   Ken​ Allen, capital budgeting analyst for Bally​Gears, In
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Answer:

a.The marginal (added) benefits of the proposed new robotics.

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c. The net benefit of the proposed new robotics.

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d. What should Ken recommend that the company do? Why?

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e. What factors besides the costs and benefits should be considered before the final decision is made?

  • increases in efficiency and reductions in manufacturing time.

Explanation:

Marginal cost benefit analysis refers to analyzing the additional benefits of a new project or activity compared to the benefits generated by an alternative project or activity.

In this case, both alternative should be evaluated as follows:

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today's $)  

required invest.                   $0             -$227,200           -$227,200

old robotics                         $0                $73,000               $73,000

<u>sales value                                                                                           </u>

marginal benefits / losses                                                  -$32,200

6 0
2 years ago
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