1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sonja [21]
3 years ago
6

Brazen Inc. sells bonds with a face value of $1,000,000 and a contractual interest rate of 10% for $1,200,000. The bonds will ma

ture in 10 years. Using the straight-line method of amortization, how much interest expense will be recognized in year 1?
Business
1 answer:
chubhunter [2.5K]3 years ago
6 0

Answer:

$80,000

Explanation:

Given:

Face value = $1,000,000

Contractual interest rate = 10%  for $1,200,000

Maturity period = 10 years

Now,

contractual interest =  10% × Face value

= 10% × $1,000,000

= $100,000

The annual bond amortization = ( $1,200,000 - $1,000,000 ) ÷ 10

= $20,000

The annual interest expense = Face value - annual bond amortization

=  $100,000 - $20,000

= $80,000

You might be interested in
Inflation can impose significant costs and adversely distort economic systems. Indicate whether the costs and distorting effects
kaheart [24]

Answer:

1. Menu costs

- Can lead to stores listing prices in more stable currencies.

- Causes costs associated with changing prices in stores.

2. Shoe-leather-costs

- Discourages people from holding money.

- Spending time converting money into something that better holds value.

3. Unit-of-account costs

- Can reduce the quality of economic decisions.

- Makes money a less reliable source of measurement.

- Can cause distortion to the tax system.

- Causes difficulty in firms and individuals financial planning.

3 0
3 years ago
Describe the obama administration's strategy for holding the may 2009 health care reform meeting with the president and all inte
anzhelika [568]
<span>The Obama administration's line of thinking was likely to afford transparency with regard to healthcare. It is likely that the meeting among representatives from hospitals, the insurance industry, medical device and pharmaceutical companies, labor and physicians at the White House was to discuss major steps being taken to lower health care costs across the board.</span>
3 0
3 years ago
Which systems are worth sharing on a transnational​ basis, from a cost and feasibility point of​ view? .
Hoochie [10]

Answer:

The systems that support functions that are absolutely critical to the organization

Explanation:

Only the systems that support functions that are absolutely critical to the organization. Critical in such that it no organization can do without them, I.e they are very important to for their survival.

4 0
3 years ago
What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a divi
e-lub [12.9K]

Answer:

$10.88

Explanation:

Calculation to determine What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities

Using this formula

Maximum payment for common stock=Dividend/Required rate of return

Let plug in the formula

Maximum payment for common stock=$1.36/.125 Maximum payment for common stock= $10.88

Therefore What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities is $10.88

6 0
3 years ago
On January 1, 2017, Desert Company purchased a copyright for $2,500,000, having an estimated useful life of 16 years. In January
Harlamova29_29 [7]

Answer:

$183,493.91

Explanation:

The computation of the amortization expense is shown below:

but before that following calculations are needed

The Amortization cost per year is

= $2,500,000 ÷ 16 years

= $156,250

Now the legal fees per year

= $326,927 ÷ 12 years

= $27243.92

Now the amortization expense is

= $156,250 + $27243.92

= $183,493.91

3 0
2 years ago
Other questions:
  • E10-1 On March 1, 2021, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was dem
    6·1 answer
  • Which option distinguishes why Djimon is gaining weight in the following scenario?
    6·2 answers
  • Individuals and organizations can give an unlimited amount of money to
    8·1 answer
  • Price inflation:_______.
    9·1 answer
  • Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets.
    12·1 answer
  • The most compelling and effective messages contain a variety of sentence patterns and avoid common sentence faults. You can crea
    14·1 answer
  • ​It's widely believed that​ self-driving vehicles will become commonplace in the fairly near future and that their growth will b
    10·1 answer
  • Batson Company produces Trivets. Based on its master budget, the company should produce 1,000 Trivets each month, working 2,500
    8·1 answer
  • One item is omitted in each of the following summaries of balance sheet and income statement data for the following four differe
    12·1 answer
  • How to obtain finacial literarcy?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!