Answer:
$42,480
Explanation:
Given that,
Value of bonds = $800,000
Interest rate = 10%
Selling price of bond (Book value) = $708,000
Priced to yield = 12%
The semi-annual yield is calculated as follows:
= 12% / 2 (because the interest is payable semiannually on June 30 and December 31)
= 6%
Therefore, the semi-annual bond interest expense:
= Selling price of bond × semi-annual yield
= $708,000 × 6%
= $42,480
Hence, the Blair should report bond interest expense for the six months ended June 30, 2021 in the amount of $42,480.
But the actual cash paid for the interest expense will be:
= (Value of bonds × Interest rate on bonds)
= [$800,000 × (10%/2)]
= $800,000 × 5%
= $40,000
So, the amortization for bond discount is the difference between actual cash paid and bond interest expense:
= $42,480 - $40,000
= $2,480
Answer:
Number of vats used is 3
Explanation:
Number of pounds used per hour, D = 195 ÷ 8
= 24.375 pounds per hour
Cycle time, T = 2.25
Inefficiency factor, e = 0.19
Material held in vats, C = 25 pounds
Now,
Let, n be total number of vats
Thus,
n = 
on substituting the respective values, we get
n =
or
n = 2.413 ≈ 3
Number of vats used is 3 [since vats cannot be in fraction]
Answer:
Option (C) is correct.
Explanation:
Variable overhead per unit:
= Variable overhead ÷ Total units produced
= $70,000 ÷ 10,000
= $7 per unit
Fixed overhead per unit:
= Fixed overhead ÷ Total units produced
= 120,000 ÷ 10,000
= $12 per unit
Total product cost:
= Direct materials + Direct labor + Variable overhead + Fixed overhead
= 10 + 6 + 7 + 12
= $35 per unit
Answer:
Present value of investment X = $41,225.37
Present value of investment Y = $37,233.50
Explanation:
The present value of the cash flows can be found by discounting the cash flows at the discount rate.
This can be found using a financial calculator
Cash flow each year from year 1 to 9 for investment X = $5,800
Discount rate = 5%
Present value = $41,225.37
Cash flow each year from year one to year 5 for investment Y = $8,600
Discount rate = 5%
Present value = $37,233.50
I hope my answer helps you
