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3 years ago

When the bonds are sold for more than their face value, the carrying amount of the bonds is equal to:_______

Business

1 answer:

frez [133]3 years ago

7 0

Answer:

b. Face value plus unamortized premium

Explanation:

When bonds are sold for more than their face value, such bonds are to be sold on premium. Mean that the in addition to the face value, an unamortized premium has been paid.

Such cases arises when the coupon payments made by bond are greater than the market rates.

Example: Let's say Samsung issues bonds at 10% coupon rate for 5 years bond while the market rate for the same 5 year bond is 8%. The Samsung is said to have sold the bond on premium.

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Oriole Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $2

Crank

Answer:

Sell before assembly, the company will be better off by $1 per unit.

Explanation:

Given that,

Unit cost of the unassembled product = $24

Selling price of unassembled product = $54

Estimated cost to assemble the product = $18

company believes the market would support a price (on the assembled unit) = $71

Profit from Unassembled product:

= Selling price - cost

= $54 - $24

= $30

Assembled product cost = $24 + $18

= $42

Profit from assembled product:

= Selling price - cost

= $71 - $42

= $29

Hence, Sell before assembly, the company will be better off by $1 per unit.

5 0

3 years ago

How are command group in menu tabs

Lera25 [3.4K]

Answer:

Typically, related commands are clustered together on the same menu or toolbar. Menus typically are displayed as one-word strings clustered in a row at the top of the integrated development environment (IDE) or a tool window.

Explanation:

7 0

4 years ago

It costs a company $35,000 to produce 500 graphing calculators. The company’s cost will be $35,080 if it produces an additional

kozerog [31]

Answer:

Marginal cost is greater than its average cost.

Explanation:

Given that,

Cost of producing 500 graphing calculators = $35,000

Cost of producing 501 graphing calculators =$35,080

Therefore,

The marginal cost = Cost of 501 graphing calculator - Cost of 500 graphing calculator

= $35,080 - $35,000

= $80

Average cost:

= $35,000 ÷ 500

= $70

Therefore, the marginal cost is greater than its average cost.

4 0

4 years ago

Transactions for Pharoah Company for the month of June are presented below. June 1Issues common stock to investors in exchange f

Semmy [17]

Answer:

The transactions have been journalized in the explanation.

Explanation:

Jornalization of a transaction is the listing of credit and debit transaction of a company in the order of the time that they were carried out. The journal of the transactions of Pharoah Company is contained in the attached pdf.

Download pdf

8 0

3 years ago

The Alto Horns Corp. is planning on introducing a new line of clarinets. They expected EBIT is $900,000. The unlevered cost of e

Vitek1552 [10]

Answer:

The correct option is B,correct annual cash flows to be used under WACC method is $640,000

Explanation:

Expected earnings before interest and tax is $900,000

interest expense on the 10% interest perpetual debt=10%*$1000,000=$100,000

earnings before tax=EBIT- interest expense=$900,000-$100,000=$800,000

earnings after tax=earnings before tax-tax expense

tax expense=earnings before tax*20%=$800,000*20%=$160,000

earnings after tax=$800,000-$160,000=$640,000

The correct amount of annual cash flow to be used under weighted average cost of capital method is $640,000 which after interest on debt and taxes have been deducted.

4 0

4 years ago