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Tresset [83]
3 years ago
7

nformation taken from a Sears, Roebuck and Company annual report follows. December 31 Long-Term Debt ($ in millions) Year 2 Year

1 7% debentures, $300 million face value, due Year 11, effective rate $14.6% $ 188.6 $ 182.7 Zero coupon bonds, $500 million face value, due Year 8, effective rate 12.0% 267.9 239.2 Participating mortgages, $850 million face value, due Year 5, effective rate 8.7%, collateralized by Sears Tower and related properties 834.5 833.9 Various other long-term debt 12,444.2 16,329.2 Total long-term debt $ 13,735.2 $ 17,585.0 Required: How much interest expense did the company record during Year 2 on the 7% debentures
Business
1 answer:
cestrela7 [59]3 years ago
5 0

Answer:

The interest expense company recorded during Year 2 on the 7% debentures is $27,535,600

Explanation:

As the interest expense is different from the interest payment made on the debenture. It also includes some other costs. Effective interest rate includes the effects of all related costs of debentures. So the interest expense of a debenture will base the effective interest rate of the debenture.

We can calculate the Interest expense on 7% debtures as below

Interest Expense = Value of Debenture x Effective interest rate

Interest Expense = $188,600,000 x 14.6%

Interest Expense = $27,535,600

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Which of the following best describes why German firms were nationalized after World War II?
Akimi4 [234]

Answer:

<u>D. Happenstance.</u>

Explanation:

The fact that German firms were nationalized has often been regarded as mere happenstance; meaning it just occurred based on the circumstances they were in immediately after World War II.

It thus encompasses several factors such as the cost of operations, changes in government, etc, not just one factor.

3 0
3 years ago
When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand fa
zheka24 [161]

Answer:

The correct answer is false.

Explanation:

A firm incurs both variable cost and fixed cost in the short run. If the firm is able to cover the variable cost in the short run it will continue operating. However, if it is not able to cover its variable cost it will stop operating.  

So, if the demand falls such that total revenue is not able to cover total cost but the variable cost is being covered, the firm will not stop production.  

In the long run, all the costs are variable. So when the revenue is not able to cover cost, the firms will stop operating.

6 0
3 years ago
Crane Company had the following account balances:
aivan3 [116]

Answer:

The correct answer is $479,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the total revenue by using following formula:

Total revenue = Net sale + Dividend revenue  + Rent revenue

Where, Net sales = Sales revenue - Sales return

= $445,000 - $34,000 = $411,000

By putting the value in the formula, we get

Total revenue = $411,000 + $10,500 + $58,000

= $479,500

4 0
3 years ago
20. Anna reports the following income and loss: Salary$ 135,000 Income from activity A60,000 Loss from activity B( 35,000) Loss
Dmitry [639]

Answer:

Based on this information, Anna has the following suspended losses:

A) Activity B    Activity C

     $11,667      $18,333

Explanation:

a) Data and Calculations:

Income and Loss:

Salary                         $ 135,000

Income from activity A  60,000

Loss from activity B    ( 35,000)

Loss from activity C   ( 55,000)

The loss from activity B and activity C are reduced by the income from activity A in proportion.

Thus, the income from activity A reduces the losses in B and C:

Income from activity A  $60,000

Activity B loss of $35,000 is reduced by $60,000 * $35,000/$90,000 = $23,333 to $11,667 ($35,000 - $23,333)

Activity C loss of $55,000 is reduced by $60,000 * $55,000/$90,000 = $36,667 to $18,333 ($55,000 - $36,667)

b) Note that the losses from activities B and C cannot be reduced by the salary income because both activities are passive sources of income and not active like salary.

4 0
3 years ago
A(n) ________ is designed to build customer goodwill, collect customer feedback, and supplement other sales channels rather than
Ket [755]

Answer: a corporate website

Explanation: A corporate website is one that is designed to build customer goodwill, collect customer feedback, and supplement other sales channels rather than sell the company's products directly.  It is also known as a brand website. However, a marketing website will engage consumers in interactions that will move them closer to a direct purchase or some other marketing outcome .

8 0
3 years ago
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