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horsena [70]
3 years ago
8

Several years ago, Nicole Company issued bonds with a face value of $1,030,000 for $960,000. As a result of declining interest r

ates, the company has decided to call the bond at a call premium of 6 percent over par. The bonds have a current book value of $1,013,000. Record the retirement of the bonds, using a discount account.
Business
1 answer:
EleoNora [17]3 years ago
8 0

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Bonds payable Dr,                      $1,030,000

Loss on retirement of bond Dr,       $78,800

($1,091,800 - $1,013,000)

          To discount on bond                      $17,000

          To cash                                            $1,091,800

($1,030,000 × 106%)

(Being retirement of the bonds is recorded)

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An all-equity firm is considering the following projects:
FromTheMoon [43]

Answer:

Projects Y and Z

b. Projects W and Z

c. Projects W and Y

Explanation:

CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)

W = 4% + [0.85 x (11% - 4%)] = 9.95%

X = 4% + (0.92 x 7%) = 10.44%

Y = 4% + (1.09 x 7%) = 11.63%

Z = 4% + (1.35 x 7%) = 13.45%

Projects Y and Z have an expected return greater than 11%

b. Projects W and Z should be accepted because its expected return is higher than the IRR

c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR

Y would be incorrectly accepted because its expected rate of return is greater  than the overall cost of capital but its expected rate of return is less than the IRR

4 0
3 years ago
If own price elasticity of demand for your market is -1.2, and your marginal cost is flat at 10, what is the optimal price for y
scZoUnD [109]

Answer: $60

Explanation:

The optimal price for a monopoly firm is expressed by;

Price = Marginal Cost * ( Own Price Elasticity/ (1 + Own Price Elasticity))

Price = 10 * ( -1.2 /( 1 - 1.2)

Price = 10 * (-1.2/-0.2)

Price = 10 * 6

Price = $60

8 0
3 years ago
If we do not pay our student loans, then our credit score will be ruined. we will not pay our loans. therefore, our credit score
k0ka [10]
The answer is Modus ponens. Modus ponens is firmly identified with another substantial type of contention, modus tollens. Both have clearly comparable yet invalid structures, for example, insisting the subsequent, denying the forerunner, and proof of nonattendance. The productive quandary is the disjunctive adaptation of modus ponens. The speculative syllogism is firmly identified with modus ponens and here and there thought of as "twofold modus ponens."
6 0
4 years ago
Tom Parkey has prepared the following list of statements about depreciation. Identify each statement as true or false.
kifflom [539]

Answer:

Explanation:

1) False. As depreciation is a process of cost allocation, not asset valuation.

2) True.

3) False. As the book value is different from market value and it can be more or less.

4) False. As depreciation applies only to building and equipment.

5) False. The correct statement ought to be depreciation does not apply to land because its usefulness and revenue-producing ability generally remain intact over time.

6) True.

7) False. Recognizing depreciation on assets results in an accumulation of cost for replacement of the asset.

8) True.

9) False. Accumulated depreciation is recorded in a balance sheet while depreciation expense is reported in the income statement.

10) False. As salvage value is the same as residual value, hence, it three factors affect the computation of depreciation.

7 0
4 years ago
HELP ME PLEASE I WILL GIVE BRAINLIEST!!!
Sav [38]

Answer:

I beleive this one would be a bit of a matter of opinion when it comes down to it, but personally I would call it a bit unethical.

Explanation:

Escpecially when it comes to something like medication, it feels unethical to be advertising yourself as the only brand that will work. In my mind unique selling proposition would be focusing on what differentiates your product from others (example, my product can provide 48 hour vs other brands that only offer 24 hour) Simply stating their brand is the only solution feels unethical and does not provide ample evidence of this claim to customers in my opinion. I don't think it would be considered illegal, but in my mind its tiptoeing the line of ethics.

3 0
3 years ago
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