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HACTEHA [7]
3 years ago
12

On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that. pay interest semiannually on January 1 and Jul

y 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months. The company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:
Business
1 answer:
ruslelena [56]3 years ago
8 0
We are given:

<span>Bond Value = $3,500,000
Bond Interest rate = 7% 
Semi-annual
Bond Issue Price = </span><span>$3,197,389 
Market Interest Rate = 8%
Amortization (semi-annual) = </span><span>$10,087

To determine the total liabilities associated with the bond, we need to convert the bond value to an amortization and add it with the existing amortization. 

We may use bond formula from economics.: 

Bond Value = Coupon * ( 1 - (1/ (1+r)^t) / r) + F/ (1 +r)^t

Input the values and solve for F.  </span><span />
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Zhang Industries budgets production of 400 units in June and 410 units in July. Each finished unit requires 5 pounds of raw mate
Vika [28.1K]

Answer:

The correct answer is $12,060.

Explanation:

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

Production in June = 400 units

Production in July = 410 units

Each unit required = 5 pounds

Cost per pound = $6

So, June required raw material = 400 units × 5 pounds = 2000 pounds

For July required raw material = 410 units × 5 pounds × 20% = 410 pounds

So, required total raw material for June = 2000 pounds + 410 pounds - 400 pounds ( already in inventory)

= 2010 pounds

So, the total cost required for raw material in June = 2010 pounds × $6

= $12,060

Hence, the budgeted cost of purchases for raw material K for June is $12,060.

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3 years ago
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tamaranim1 [39]

The answer to the blank space is etiquette and manners.

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4 0
3 years ago
Whenever the production of a good creates negative externalities, an unregulated market will result in:
sp2606 [1]

Answer:

Option (C) is correct.

Explanation:

In an unregulated market, negative externality results in a higher social marginal cost than the firm marginal cost because this market is not properly regulated by the government officials. Hence, these firms are not taking into account the effect of negative externalities in their cost.

We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.

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6 0
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Dominik [7]
D sounds like the best answer
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sesenic [268]

Answer:

This is a personal question man

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Im sorry, but I can't answer personal questions

Sorry

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