Answer:
a.The bonds will sell at a premium if the market rate is 5.5 percent.
Explanation:
Following information provided in the question
Coupon rate = 6%
Face value = $1,000
Time period = 10 years
And if we consider the interest rate 5.5%
So as we can see than the interest rate or market rate is less than the coupon rate or we can say that the coupon rate is more than the market rate so the bond is sell at a premium
Answer:
B) $617,000
Explanation:
Issuance capital of 500,000 shall remain constant. Out of the current year net earnings 25000 we are paying 2000 as dividend so, that adds to the owners equity = 23000.
Total liabilities = total assets = 500000 + 23000 + 94000 = 617000
Answer:
Cost per equivalent unit: $60
Explanation:
Cost per equivalent unit = (Cost of Beginning Work in Progress Inventory + Total production cost during the period) / Equivalent Units of Production (EUP)
Total Production Cost = $90,000
Equivalent Units of production (EUP) = 1,300 + 400 x 50% = 1,500 units
Cost per equivalent unit: $90,000 / 1,500 units = $60
Answer:
$1 million
Explanation:
Section 179 deduction of the IRS code was enacted to help small business owners take depreciation deductions for certain assets ( capital expenditure I.e. the money spent on acquiring and maintaining fixed assets such as buildings and equipments ) in one year rather than continuous depreciation over a long period of time.
The new law increased the maximum deduction from $500,000 to $1 million.
For example: lets say you buy a computer for your office, under section 179 you can deduct the full cost of your computer in one year. This a very okay because the life span of your computer is short
