Answer:
Bond is selling at Premium
Explanation:
It is common for bond valuation if coupon rate is greater than market interest rate than bond is selling at premium.
Suppose
Bond = $1000
Coupon rate = 5.2% / 2 = 2.6%
Market interest rate = 4.6% / 2 = 2.3%
No of year = 18 x 2 = 36 Years
using PVIFA and PVIF table value coupon amount and bond we can get the value of current market price.
Coupon is $1000 x 2.6% = $26
Par Value of bond = $1000
Using PVIFA & PVIF table at 2.3% we get the following figures.
$ 26 x 24.3026 = $631.87
$ 1000 x 0.4410 = $441.04
Current market value of bond = $1072.91
The sales price, acquisition costs, and capital improvement costs (such as renovations or additions) of a property combine to make up the<u> </u><u>Basis</u>.
Acquisition price refers to an amount paid for a constant property, for expenses associated with the purchase of a new purchaser, or for the takeover of a competitor. It is useful in identifying the entire cost of the fixed property as it consists of gadgets together with criminal charges and commissions and eliminates discounts and remaining fees.
The acquisition fee refers to the all-in value to buy an asset. these expenses encompass shipping, income taxes, and customs charges, as well as the prices of web page training, installation, and testing. Whilst acquiring property, acquisition prices can include surveying, closing expenses, and paying off liens.
Patron acquisition cost is the fee of winning a purchaser to buy a product or service. As an important unit financial, consumer acquisition expenses are often associated with purchaser lifetime costs. With CAC, any employer can gauge how lots they’re spending on obtaining every client.
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Answer: True
Explanation:
The capital intensity ratio of a company
is used to measure the amount of capital that is required per dollar of revenue. The capital intensity ratio is calculated when the total assets that a company has is divided by its sales.
It should be noted that firms that has high capital intensity ratios have found ways to lower this ratio which allows them to achieve a given level of growth with fewer assets and consequently less external capital.
Answer:
d. increase equity by $4,900
Explanation:
Jack Snow received $14,700 on December 1 for services to be rendered in December, January and February. It will not be recorded as income because it hasn't been earned.
Adjusting entries will be passed at the end of each month to recognise amount earned.
Since it is for 3 months, monthly amount earned = 14,700/3= $4,900
At December 31 Retained earnings will be credited for $4,900.
Retained earnings is part of owner's equity.
So equity will increase by $4,900
Answer:
predetermined overhead per direct labor hour: $11.02
Explanation:
To solve for overhead rate we determinate the expected cost and distribute them over a cost driver which is, in this case; direct labor hours
<u>Expected overhead cost:</u>
Machinery maintenance $ 181,350
Utilities $ 226,380
Supervision $ 191,000
Materials handling cost $ 67,000
Building occupancy costs $ 98,270
Indirect materials $<u> 31,650 </u>
Total overhead: $ 795,650
Total direct labor: 72,000
Overhead rate: 795,650 / 72,000 = 11.0206944= $11.02
