Answer:
7.31%
Explanation:
The question is pointing at the bond's yield to maturity.
The yield to maturity can be computed using the rate formula in excel as provided below:
=rate(nper,pmt,-pv,fv)
nper is the number of times the bond would pay annual coupons which is 31
pmt is the annual coupon payment i.e $1000*8.0%=$80.00
pv is the current price of the bond which is $1,084
fv is the face value of the bond which is $1,000
=rate(31,80,-1084,1000)=7.31%
The yield to maturity is 7.31%
That is the annual rate of return for an investor that holds the bond till maturity.
Answer:
A) Commercial Transactions for the sale "of sonf" (should be AND) payment of goods.
Explanation:
The Uniform Commercial Code (UCC) was established to create a set of standard laws that can regulate interstate commerce. Since different states had various state laws that regulated commerce, it was difficult for companies to work without problems happening. Since the Constitution gave Congress the power to regulate interstate commerce, they set up the UCC that provides a standard legal framework for all the nation.
Answer:
It will be reported as accrued expenses (c)
Explanation:
Accrued expenses represents amount owed for either serviced that has been enjoyed or goods that have been delivered but yet to be paid for.
Income statement is prepared on accrual basis, hence, these expenses will be recognized in the current period and matched with revenues generated.
Answer:
b. $5m
Explanation:
If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m
Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)
In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45
While the Total Consideration = $50
Therefore Goodwill = $50m - $45m = $5m