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
A risk management assessment is a systematic and methodical evaluation of the security posture of the enterprise.
Korolek [52]

Answer: false

Explanation:

Vulnerability assessment is defined as the systematic and methodical evaluation of security posture of the enterprise. It is used to expose the assets to the things that can harm them.

The steps that are involved in vulnerability assessment are the identification of asset, threat evaluation, the vulnerability appraisal, the risk assessment and finally the risk mitigation.

Therefore, the question is false

3 0
3 years ago
In order to isolate a subset of records from an open form or datasheet that will be needed only temporarily, a set of criteria m
fgiga [73]
Filter is the answer!!!
7 0
3 years ago
Nick lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on jello and pie. A bowl of jello is pr
OlgaM077 [116]

Answer:

Yes.

Explanation:

Market rate of exchange of jello for pie:

= Price of a piece of apple pie ÷ Price of jello

= $3.75 ÷ $1.25

= 3.00

At his current consumption point, Nick's marginal rate of substitution (MRS) of jello for pie = 3

Since MRS = Px/Py, hence, at this point of consumption bundle he is having a maximum level of utility.

Therefore, there is no need to change his consumption bundle because he is already at his maximum level.

4 0
3 years ago
Which is a helpful resource for you during the process of buying a home? A. Realtors B. Local programs C. Government programs D.
Klio2033 [76]

Answer:

A. Realtors

Explanation:

A realtor is a professional who helps clients buy and sell properties.  Realtors are registered by the National Association of Realtors (NAR) and licensed to practice by their local authorities.

Realtors work for real estate companies. They may be real estate agents, salespeople, residential and commercial real estate brokers, property managers, or appraisers. Since they are recognized by law, and their work revolves around properties, realtors stand in a better position to assist someone buying a house.

3 0
2 years ago
The operational design of an illicit drug business can be divided into four stages of production and distribution: cultivation,
vesna_86 [32]
Retail distribution

The illegal drug business or trade primarily consists of the cultivation, manufacture, distribution and sales of prohibited drugs.

Cultivation and manufacture involves planting and harvesting prohibited drugs from plant sources (e.g. opium or marijuana) and processing the plant raw materials to produce the final product. For synthetic drugs, manufacture entails securing (sometimes by importation) of the chemicals required for the production of a certain drug (e.g. methamphetamine). Importation of the raw materials or final products might also be necessary to meet the demands.

With the final product at hand, the next step is to distribute and sell the drugs -- wholesale or retail. Wholesale distribution and sales involve large amounts (in bulk) of the illegal drugs while retail involves smaller amounts.  
5 0
2 years ago
Other questions:
  • Bailey Corporation manufactures and sells a number of products, including Product G. Results for last year for the manufacture a
    6·1 answer
  • As specialization increases in an economy, businesses tend to experience: a.) an increase in self sufficiency due to businesses
    14·2 answers
  • ​O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the
    6·1 answer
  • Aaron Nance is a freshman in college who has not yet decided on his major. He is thinking about majoring in operations managemen
    8·1 answer
  • Other things the same, as the price level decreases it induces greater spending on a. both net exports and investment. b. net ex
    8·1 answer
  • A loaf of bread cost $0.18 in 1955 and the CPI was 26.8. The CPI in 2013 was 233.
    14·1 answer
  • Which variance deals with the amount that is paid to the work force making products for a​ company? A. Direct Materials Price va
    8·1 answer
  • A commercial bank has excess reserves of $5000 and a required reserve ratio of 20 percent. it makes a loan of $6000 to a borrowe
    15·2 answers
  • ________ is the process of studying large amounts of data of a variety of types to uncover hidden patterns, unknown correlations
    8·1 answer
  • Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!