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Maslowich
1 year ago
6

Chang industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000. If the company calls these

bonds at a price of $201,000, the gain or loss on retirement is?
Business
1 answer:
Fynjy0 [20]1 year ago
4 0

If the company calls these bonds at a price of $201,000, the gain or loss on the retirement would be $2,000.

Here,  $203,000 is the net carrying value of the liability - $201,000 is the price the bonds were called at and the price that Chang industries paid to retire the bonds and the associated liability.

Therefore,   $203,000 - $201,000 =  $2,000

The gain or loss on the retirement would be $2,000.

A bond retirement occurs when an organization repurchases bonds that it had previously issued to investors. Thus, the issuer retires the bonds at the scheduled maturity date of the instruments.

Hence, bond retirement involves the cashing out of a bond that has been invested in.

To learn more about bond retirement here:

brainly.com/question/13960495

#SPJ4

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The balance sheet below reflects Zee Bank after its purchase of $50 million in government securities from the Fed. Assume a requ
UkoKoshka [18]

Answer:

$500 million

Explanation:

The solution of the money supply and its effect is here below:-

Decrease in money supply = $50 million ÷ reserve ratio

= $50 million ÷ 10%

= $500 million

If $50 million were used to repay loans, that will have raised money supply. Thus, buying $50 million in government securities from the fed reduces the supply of capital.

3 0
3 years ago
Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. Sh
Alexxx [7]

Answer:

Darla's amount realized on the sale is $800

Adjusted basis in the assets sold is $300

Producing a realized gain on the sale of $500

Explanation:

Amount realized = cash received + FMV of other property + buyer’s assumption of seller’s liabilities – seller’s expenses

Amount realized = 600 + 200 + 0 -0

= $800

Adjusted basis = initial basis – cost recovery deductions

Adjusted basis = 2500-2200 = $300

Gain or loss realized = amount realized – adjusted basis = 800-300

= $500

Therefore Darla's amount realized on the sale is $800 and the adjusted basis in the assets sold is $300, producing a realized gain on the sale of $500

8 0
3 years ago
Which of the following databases provides end-of-day daily prices and historical prices for U.S. Corporate, Treasury and Agency
Vaselesa [24]

Answer:

a. FactSet Prices & Derived Analytics

Explanation:

the answer to this question is option A. Factset prices and analytics gives financial data as well as analytic data to the global investment world. this company gets data directly from suppliers, these suppliers are usually third party data suppliers, other sources are form news channels, fro exchangers. it also provides analytic services to companies that want to track their portfolios.

3 0
2 years ago
You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly
kykrilka [37]

Answer:

84%

Explanation:

APR is the annual rate of interest that is paid on an investment, without taking into account the compounding of interest within that year. APR is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied.

Divide the finance charge by the loan amount. In this case, $3,400 divided by $24,500 equals 0.138

Multiply the result by 365 to get 50.4

Divide the result by the term of the loan. In this case, 50.4 divided by 60 is 0.84

Multiply the result by 100 to turn the answer into a percentage 84%

4 0
3 years ago
Suppose that the market price for a bottle of vitamins is $2.54 and that at that price the total market quantity demanded is 105
Mars2501 [29]

Answer:please refer to the explanation section

Explanation:

The question is incomplete, The amount that each firm must produce is not given or the Quantity/demand equation that each firm faces is not given. We use a firm's quantity/demand equation to calculate how much each firm should produce and then work out the number of firms that should exist in the industry.

let us assume quantity produced by each firm is given by this equation;

Q = 1900 + 15000Price

We need to plug the Price of $2.54 per unit Vitamin Bottle to the quantity equation. Q = 1900 + 15000(2.54) = 40 000

each firm must produce 40 000 units

Number of firms that should exist = Total Market Quantity/Firms Quantity Number of firms that should exist = 1055 560 000/40 000

Number of firms that should exist = 26389

When the price is $2.54, with each firm Producing 40000 units, 26389 firms should exist in the market to cover the total Market Quantity of 1055 560 000.

The question may provide you with the Quantity that each firm must produce, in that case you simple divide total market quantity by the firm's quantity to find number of firm that should exist.

When you are given quantity equations you use the price to work out quantity produced by each firm and then Divide the Market Quantity by Firm's quantity to find number of firms that should exist

6 0
2 years ago
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