On August 1, Year 1, Ant Company sold Bee Company $1,500,000 of 10-year, 6% bonds, dated July 1 at 100 plus accrued interest. On
March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest. Present entries to record the following transactions:
Bee Company:
a. Purchase of bonds on August 1, Year 1.
b. Receipt of first semiannual interest amount on December 31, Year 1.
c. The sale of the bonds on March 1, Year 2.
Bee Company:
a. Purchase of bonds on August 1, Year 1.
b. Receipt of first semiannual interest amount on December 31, Year 1.
c. The sale of the bonds on March 1, Year 2.
1 answer:
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Explanation:
The cost function for this industry is given by,
When it is used for full 8 hours, total cost is
When it is used for 7 hours, TC is $600.
When it is used for 6 hours, TC is $550
When it is used for 5 hours, TC is $500.
When it is used for 4 hours, TC is $450.
When it is used for 3 hours, TC is $400.
When it is used for 2 hours, TC is $350.
When it is used for 1 hours, TC is $300.
When it is used for 0 hours, TC is $250.
Thus, the cost curve will look like the diagram given below.
