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Gnesinka [82]
3 years ago
6

On November 1, 2019, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were dated November 1, 2019, and in

terest is payable each November 1 and May 1. Davis uses the straight-line method of amortization.
How much is the semi-annual interest expense when the straight-line method of amortization is utilized?


A. $1,095.


B. $2,055.


C. $2,190.


D. $2,010.
Business
1 answer:
Tcecarenko [31]3 years ago
8 0

Answer: A.) $1,095

Explanation:

Bond value = $30,000

Rate = 7%

Period = 10 years

Issue price = $29,100

Bond value × rate :

30,000 × 0.07 = $2100

Semi annually:

$2100 / 2 = $1050

(Bond value - issue price) ÷ (period × 2)

($30,000 - $29,100) / (10 × 2)

$900 ÷ 20 = $45

$1050 + $45 = $1,095

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Answer: Sara must take a break and come back later.

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3 years ago
Problem solving is defined as
Oduvanchick [21]

Answer:

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7 0
2 years ago
After you have all of the information, decide which financial institution is best for you. Write your answer in the text box bel
sveta [45]

Answer: Security of your funds. ...

Fees.

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ATM fees.

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Explanation:

8 0
2 years ago
A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $18.60; however, many i
Gwar [14]

Answer:

$184,300,000

Explanation:

A mid-sized firm plans to issue 10 million shares during an IPO.

The underwriter plans to sell shares at $18.60; which implies a cash inflow of 10,000,000 x 18.6 = $186,000,000

If the underwriter charges a $1.7 million fee to undertake the IPO, The firm would raise in the IPO

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3 years ago
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Inessa [10]

Answer:

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8 0
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