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spayn [35]
3 years ago
7

On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year bonds. The bonds sell for $391,000. Six years later, on January

1, 2025, Shay retires these bonds by buying them on the open market for $419,000. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance
Business
1 answer:
noname [10]3 years ago
4 0

Answer:

$9,000

Explanation:

The computation of the  amount of the discount on the bonds at issuance is shown below:

= Par value of the bond - issued price of the bond

= $400,000 - $391,000

= $9,000

By deducting the issued price of the bond from the par value of the bond we can get the discount amount on issuance of the bond and the same is applied above

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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 milli
laiz [17]

Answer:

a)

MACRS 3 year depreciation schedule

33.33% x $2,300,000 = $766,590

44.45% x $2,300,000 = $1,022,350

14.81% x $2,300,000 = $340,630

carrying value at end of year 3 = $170,430

net after tax cash flow from salvage value = $210,000 - [($210,000 - $170,430) x 22%] = $201,294.60

cash flows:

year 0 = -$2,300,000 - $270,000 = -$2,570,000

year 1 = [($1,720,000 - $628,000 - $766,590) x 0.78] + $766,590 = $1,020,410

year 2 = [($1,720,000 - $628,000 - $1,022,350) x 0.78] + $1,022,350 = $1,076,677

year 3 = [($1,720,000 - $628,000 - $340,630) x 0.78] + $340,630 + $201,294.60 + $270,000 = $1,397,993

b)

NPV = $297,794, and IRR = 16.12%

6 0
3 years ago
A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.suppleme
JulsSmile [24]

Answer:

A, supplementary

Explanation:

A supplementary service can be said to be an added service to an original service package.

That is, a supplementary service can be said to be an extra service or services that is embedded in a whole service.

For example, when you go to a tech store to have your hard drive replaced, a supplementary service such as general cleaning and routine check of your computer is included in the hard drive replacement service.

The main or core service is hard drive replacement while the supplementary service includes cleaning and routine check of other computer components.

Cheers.

4 0
3 years ago
Terra Corporation purchased equipment with a 10-year useful life and zero residual value for $100,000. At the end of the fourth
vazorg [7]

Answer:

Assets increase by $10,000

Total stockholders' equity increases by $10,000

Explanation:

Since in the question, it is given that, the purchase value of equipment is $100,000 and the exchanged value is $110,000

So, the difference of $10,000 ($110,000 - $100,000) would reflect that the assets would increase by $10,000 and the total stockholders' equity is also increased by $10,000

The exchange value is a combination of $70,000 in trade allowance and $40,000 was paid in cash

3 0
3 years ago
Which one of these is covered by a specific type of insurance policy?
irina1246 [14]

Answer:

A.Off grid homes

Explanation:

Specific type of insurance policy covers the most common perils except those specifically excluded perils such as earthquake, flood, nuclear disaster, landslide.

OFF GRID HOMES refer to homes which are self-sufficient without reliance on  modern technology and public utilities. That means that this homes do not have access to electricity, gas, water, etc.

Therefore, these homes can be insured by a specific type of insurance policy.

4 0
2 years ago
Yong produces silk and polyester fabrics. Management has compiled the following unit selling price and unit cost information for
monitta

Answer:

$9.05

Explanation:

the information about prices and costs is missing, so I looked it up:

contribution margin per yard for silk = $18 - $4.10 - $2.70 - $3.51 - $0.90 = $6.79

contribution margin per yard for polyester = $10.20 - $0.80 - $2.90 - $3.77 - $0.60 = $2.13

contribution margin per machine hour:

silk = $6.79 x 1/0.75 = $9.05

polyester = $2.13 x 1/0.5 = $4.16

8 0
3 years ago
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