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
madreJ [45]
4 years ago
11

On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of $970,500. The indenture spec

ified a call price of $987,000. The bonds were issued previously at a price to yield 11% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2021. What is the amount of the loss on early extinguishment?
Business
1 answer:
nevsk [136]4 years ago
6 0

Answer:

loss at extinguishment 8,122.50 dollars

Explanation:

we should compare the amount we pay for the bonds and the book value of the bonds:

book value   978,877.50*

call price   <u>   (987,000.00)  </u>

loss                    (8,122.50)

*We are given with the value at January 1st we must adjust for the value at july 1st using effective-rate method

970,500 x 11%/2 = 53,377.5 interest expense

1,000,000 x 9%/2 = 45,000 cash outlay

amortization               8,377.5

<em><u /></em>

<em><u>carrying value:</u></em>

970,500 + 8,377.5 = 978,877.5

You might be interested in
New orders are coming in quickly for SmartTech, and management is confident that new contracts will take them through the next c
slamgirl [31]

Answer:

Technological advancement

Explanation:

Technological advancement is a method that is used to make production process more efficient without increasing the labour that is used.

It involves the use of technology to increase efficiency of the production process.

This makes it possible for SmartTech to produce more product and services with less people.

They are investing more in technology than in human labour.

7 0
3 years ago
Comcast (CMCSA) is trading at 54.33. You decide to short sell 100 shares of their stock, providing 2850 in collateral to your br
s344n2d4d5 [400]

Answer: =-9.34%

Explanation:

Assuming the brokerage account pays no interest on your cash, the return, relative to the collateral will be calculated as:

= (Short sell price - dividend - Share buy price)/Capital employed

= (5433 - 100 - 5600) / 2850

= -267 / 2850

= -0.09368

=-9.34%

Note:

Short sell price = 54.33 × 100 = 5433

Dividend = 100

Share buy price = 56 × 100 = 5600

3 0
3 years ago
Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felinas, asked you to assist him in estimating his main
Paul [167]

Answer:

D. $162

Explanation:

We know,

Using high-low method, variable cost per unit = (Highest maintenance expense - Lowest maintenance expense) / (Highest machine hours - Lowest machine hours)

Given,

Highest maintenance expense = $4,360

Lowest maintenance expense = $2,950

Highest machine hours = 2,500 hours

Lowest machine hours = 1,660 hours

Therefore,

Variable cost per unit = $(4360 - 2950)/(2500 - 1660)

Variable cost per unit = 1410/840 = 1.68

Total Fixed cost using lowest machine hours =

Total cost - (variable cost per unit x least machine hours)

= 2,950 - (1.68*1,660)

= $162

6 0
3 years ago
Which is an example of a withholding you might see on your pay stub?
stiks02 [169]
A withholding that you can see on your pay stub could include a health insurance payment or a retirement savings.
8 0
4 years ago
Read 2 more answers
I prefer to work on familiar work tasks.
yanalaym [24]
But is it good to learn new ideas, so you can grow...
6 0
4 years ago
Other questions:
  • Do you think individuals should be able to open companies anonymously? Why or why not?
    5·1 answer
  • Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60
    10·1 answer
  • One of the potential pitfalls of real options analysis is that managers may have the incentive and know-how to game the system.
    15·1 answer
  • Transactions for Pharoah Company for the month of June are presented below. June 1Issues common stock to investors in exchange f
    8·1 answer
  • It is fairly easy to acquire loans in Arzenia as the financial intermediaries of the country receive sufficient funds in the for
    5·1 answer
  • What is a budget constraint and what is the formula
    5·1 answer
  • Country Furniture Company manufactures furniture at its? Akron, Ohio, factory. Some of its costs from the past year? include:
    8·1 answer
  • ABC Company sells 300 machines for $5000 each in the current year. Each machine carries a one-year warranty. Experience from the
    13·1 answer
  • Can someone please help me
    6·2 answers
  • A list of all account names used to record transactions of a company is referred to as a T-account
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!