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Degger [83]
3 years ago
12

On January 1, 2004, Kay Inc. issued its 10% bonds in the face amount of $400,000, which mature on January 1, 2014. The bonds wer

e issued for $354,000 to yield 12%, resulting in a bond discount of $46,000. Kay uses the effective interest method of amortizing bond discount. Interest is payable semiannually on July 1 and January 1. At June 30, 2004, Kay's unamortized bond discount would be
Business
1 answer:
DaniilM [7]3 years ago
3 0

Answer:

Unamortized discount is $43,700

Explanation:

Unamortized bond discount=original bond discount-amortization to date

original bond discount is $46,000

Amortization =interest  payable-interest expense

interest payable=$400,000*10%*6/12

                            =$20,000

Interest expense=$354,000*10%*6/12

                             =$17,700

amortization of discount=$20,000-$17,700

                                        =$2300

unamorized bond discount=$46000-$2300

                                            =$43,700

The unamorized bond discount at the end of the first six months is $43,700

                     

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Your venture has net income of $600,000 taxable income of $1,000,000 operating profit of $1,200,000 total financial capital incl
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Answer:

EVA = -$180,000

Explanation:

given data

net income = $600,000

taxable income of $1,000,000

operating profit = $1,200,000

total financial capital = $9,000,000

tax rate = 40%

WACC = 10%

solution

we get here EVA that is express as

EVA = NOPAT - Invested Capital × WACC   ..................1

and here

NOPAT = EBIT × ( 1 - Tax Rate )  .........2

put here value

NOPAT = operating profit × (1 - Tax Rate)  

NOPAT =$1,200,000 × (1 - 0.40)  

NOPAT =$720,000

so put in equation 1 we get

EVA = NOPAT - Invested Capital × WACC

EVA = $720,000 - $9,000,000 × 10%

EVA = -$180,000

3 0
3 years ago
Which account has the lowest minimum balance requirement? Bank Account Terms and Conditions Account A Account B Account C Accoun
Sedaia [141]

Answer:

d

Explanation:

3 0
3 years ago
Read 2 more answers
What would you say are four major faults of measurement
-BARSIC- [3]

Answer:

The major faults of measurement are:

  • Coverage
  • Measurement
  • Sampling and
  • Response

Explanation:

During business research, the data collected during the survey can become very unusable due to errors arising from the factors listed above.

The problem of coverage arises when for instance an electronic survey is used to collect data from a sample population where 69% for instance, do not have access to a mobile phone or a computer.

Measurement problems during a survey speak to the ability to properly design a questionnaire in such a way that it elicits the right kinds of responses. This means asking the right questions so that the responses or answers are accurate. The irony of measurement error is that one's survey is useless if they got the questionnaire design wrong, regardless of whether or not the response rate was very high.

After administering a survey and there is little or no response, one is said to have an error in response rate. A low response rate increases the error margin of the survey as well as it's unreliability.

Sampling errors are said to occur when the sample size is too small or statistically homogenous such that it does not accurately represent the entire population. When this happens it is termed <em>sample frame error.</em>

Another error can occur when the researcher includes the wrong population or excludes the right population. This is called <em>Error in Population Specification. </em>

Cheers

4 0
3 years ago
How aggressively should TJX expand globally, and where, and when, to maximize the value of the company shareholders?
Anni [7]
Might have to do some personal research idk who's gonna do a whole project for you but googles a wonderful thing
6 0
3 years ago
Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be
solong [7]

Answer:

total payment will be $21,000.

Explanation:

The Payment at maturity will include, the Principle amount (amount borrowed) and the Interest that accrued over the period of the note payable.

<u>Total Payment Calculation :</u>

Principle amount            = $20,000

Interest ($20,000 × 5%) =    $1,000

Total Payment                =  $21,000

7 0
3 years ago
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