1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
allsm [11]
4 years ago
14

On January 1, Year 1, Weller Company issued bonds with a $260,000 face value, a stated rate of interest of 10.00%, and a 10-year

term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.00%. Interest is paid annually on December 31. Assuming Weller issued the bonds for $280,640, what is the carrying value of the bonds on the December 31, Year 3?
Business
1 answer:
Luden [163]4 years ago
3 0

Answer:

The carrying value of the loan in year 3 is $269,119.18

Explanation:

The carrying of the bond in year 3 comprises the loan opening book value in year 3 plus interest calculated on the opening balance using the yield to maturity less the  coupon payment calculated as a percentage of face value as computed in the attached excel file.

You would notice that the carrying values in years 1, 2 and 3 are $277,091.20,$273,258.50  and $269,119.18

Kindly find attached.

Download xlsx
You might be interested in
An investor buys an 8% municipal bond in the secondary market on a 10% basis. The investor does not accrete the bond discount an
adell [148]

Answer: C

Explanation:

This is because although the coupon rate is devoid of federal income tax any market discount is taxed as interest income earned. So so if there is a way that they can be taxed without jeopardizing their basic Federal income tax-free status, why not? The discount can be accreted annually and tax paid, or the tax can be paid at maturity or sale date.

5 0
3 years ago
Read 2 more answers
What is the name of the two year program that prepares high school students for jobs in the hotel industry
Stells [14]
Certified Hospitality Instructor (CHI)
7 0
3 years ago
Read 2 more answers
Which dimension of the general environment represents the demographic characteristics, norms, customs, and values of the populat
BARSIC [14]

Answer:

c. Sociocultural dimension

Explanation:

The sociocultural dimension of the general environment takes into account the demographic traits of society such as age, race, religion etc. as well as the  society's attitudes and cultural values. It is important for businesses to operate in ways that respect the sociocultural environment within which they operate.

7 0
3 years ago
Unencrypted information is
sergiy2304 [10]

Answer:

likely to be stolen and abused.

Explanation:

Uninterrupted information is a type of data that presented in a way that is understandably for most people (such as plain text).

When storing your information online with encrypted information, you make your data become easily  identified, viewed and accessed by hackers. To prevent this from happening, you need to mask the data using encryption algorithms. This will make it really hard for a third party to decrypt your information and prevent it from being stolen.

3 0
3 years ago
Company C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier
Katen [24]

Answer:

A. 300

Explanation:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Annual demand = 600 bottles × 50 weeks = 30,000 bottles

Carrying cost per bottle = $50 × 40% = $20

And, the ordering cost per order is $30

Now put these values to the above formula  

So, the value would equal to

= \sqrt{\frac{2\times \text{30,000}\times \text{\$30}}{\text{\$20}}}

= 300 bottles

Hence, option A is correct

3 0
3 years ago
Other questions:
  • Regal Financial Institution specializes in home loans. What type of financial institution is it? savings and loan bank credit un
    10·2 answers
  • On-Time Truckers prepares monthly financial statements. On July 1, the Supplies account had a balance of $3,500. During July, ad
    12·1 answer
  • Towson Company manufactures book cases, and each requires 28 board feet of lumber. Towson expects that 2,000 and 1,850 book case
    13·1 answer
  • In the 1970’s the Ford Motor Company sold its subcompact Pinto model with known design defects. In particular, the gas tank’s de
    8·1 answer
  • What account earns the most interest
    14·1 answer
  • allatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% o
    13·1 answer
  • Skidmore Music Company had the following transactions in March:
    15·1 answer
  • Q.23 :-Your Boss says- ' I want the job done, I do not have time to listen to your
    5·1 answer
  • What is the safest way to make sure you are using a copyrighted image fairly? A. Do a Google image search. B. Save the image to
    8·1 answer
  • All along the supply chain, distribution channels add value to the product by
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!