Answer:
$510,000
Explanation:
No.of bonds issued = $600,000 / $1000 = 600
Total no. of stock warrants = 600 x 50 = 30,000
Market Value of stock warrants = 30,000 x $4 = $120,000
Issue price of bonds = $600,000 x 1.05 = $630,000
Amount to be recorded as increase in liabilities = Issue price of bonds - Value of stock warrants
= $630,000 - $120,000
= $510,000
Answer:
Sarbanes - Oxley Act
Explanation:
The Sarbanes - Oxley Act was passed into law by the United States Congress July 30th 2002 basically to provide protection for investors against financial reporting that are fraudulent by corporations. This law was enacted as a result of the cases of financial scandals that shook large companies including Enron Corporation around the year 2000.
The order to protect the investors from fraudulent reporting, the act also protects accounting officers such as Sharon who become whistle-blowers by reporting the malpractices and unethical accounting practices of corporations to the government for actions and sanctions.
Options:
a.trade specialization
b.trade internalization
c.trade creation
d.trade diversion
Answer:D.trade diversion
Explanation: Trade diversion is a term used in international trade to describe the shift in trade between one nation to another by a third party due to trade preference,leading to a reduced volume of trade between the two nations who originally are trade partners.
TRADE DIVERSION OCCURS WHEN THERE IS A SPECIAL INTEREST OR PREFERENCE DISPLAYED BY ONE OF THE TRADING PARTNERS.
The increased volume of trade between the companies in the United States of America and that if Mexico which has led to a reduced volume of trade between the United States of America and Taiwan is a TRADE DIVERSION.
