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ladessa [460]
2 years ago
6

On January 1, 2020, Cougar Sales, Inc. issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and

pay semiannual interest. Cougar Sales, Inc. uses the straight-line method to amortize the Bond Discount. On June 30, 2020, when Carter makes the first payment to bondholders, how much will they report as Interest Expense?
Business
1 answer:
PSYCHO15rus [73]2 years ago
4 0

Answer:

$700

Explanation:

If a bond is issued at a lower price than the face value of the bond, then the bond is issued on the discount. This discount is amortized over the bond's life. This amortization will be expensed as Interest Expense.

Discount = Face value - Issuance price = $15,000 - $14,700 = $300

Bond's Life = 6 years

Amortization of discount = $300 / 6 = $50 annually = $25 semiannually

Coupon Payment = Face Value x coupon Rate = $15,000 x 9% = $1.350 annually = $675 semiannually

Interest Expense Includes both the coupon payment and discount amortization for the period.

Interest Expense = $675 + $25 = $700

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Jordan has the following assets and liabilities: Two cars $10,000 House $200,000 Mortgage $100,000 Cash $1,000 Car loans $3,000
kirill [66]

Answer: B. increase to $209,000;increase to $209,000

Explanation:

<em>If he uses that money to pay off his mortgage, his wealth would </em><em><u>increase to $209,000</u></em><em> if he puts that money in his checking account, his wealth would </em><em><u>increase to $209,000.</u></em>

<u></u>

A person's wealth is calculated by deducting their liabilities from assets. In this case Jordan's wealth is;

= 10,000 + 200,000 + 1,000 + 2,000 - 100,000 - 3,000 - 1,000

= $109,000

If he pays off the Mortgage his debt will reduce by $100,000 which will increase his wealth to $209,000.

If he puts the money in his checking account, his assets will increase by $100,000 which will bring his wealth to $209,000 as well.

7 0
3 years ago
An alternative to CFL bulbs and incandescent bulbs are light-emitting diode (LED) bulbs. A 100 W incandescent bulb can be replac
mariarad [96]

Answer:

It cost $5.84 to run the LED bulb for one year if it runs for five hours a day.

Explanation:

E = Pt

  = (16W)(365*5)

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cost of operation = E($0.2/kWh)

                             = (29.2 kWh)($0.2/kWh)

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Therefore, It cost $5.84 to run the LED bulb for one year if it runs for five hours a day.

8 0
3 years ago
6.
Vikki [24]

Answer:

Brand performance

Explanation:

Brand performance is the concept that compares and contrasts the goals a brand sets and how it meets those targets.

Therefore, brand performance is the concept that describe how well a market fulfills customers needs.

The answer is D

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Developing a new automobile requires the services of many types of experts such as design and electronics engineers, procurers,
sashaice [31]

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Boundaryless organization is an organization that is not hindered or limited by boundaries created through established structures.

It could also mean an organization whose operation is not confined to a particular location or the confine of their office complex.

The idea of boundaryless organization was first conceptualized by Jack Welch who wanted to eliminate any form of barrier (both internally and externally) in the way General Electrics carried out its operations.

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•Latest technology for getting work done must also be adopted over traditional mode of operation

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Answer:

c. escalator clauses

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