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JulsSmile [24]
3 years ago
14

n January​ 1, 2018, Waller Sales issued $ 20 comma 000 in bonds for $ 18 comma 300. These are eightminusyear bonds with a stated

rate of 12​%, and pay semiannual interest. Waller Sales uses the straightminusline method to amortize the bond discount. After the second interest payment on December​ 31, 2018, what is the bond carrying​ amount?
Business
1 answer:
spayn [35]3 years ago
8 0

Answer:

$18,106.25

Explanation:

For computing the carrying value of the bonds , first we have to determine the discount amortization for 8 years which are shown below:

= (Issued amount - proceeds from the bonds) ÷ time period

= ($20,000 - $18,300) ÷ 8 years × 2 years

= $106.25

Now the carrying value would be

= Proceeds from the bonds + discount amortization for 8 years  

= $18,000 + $106.25

= $18,106.25

Since the time period is 8 which are paid in semi-annual so we double the time period

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Andrew Lighting purchases a factory and all of the equipment, computers, and vehicles within it. Andrew begins production of lam
alexandr1967 [171]

Answer: Factory

Vehicles

Equipment

Explanation:· A fixed asset is a long-term tangible asset a company owns and uses in its production activity to earn an income.

The computer isn't a fixed asset to Andrew because he doesn't use it in his production process.

3 0
3 years ago
Which of the following has made it possible for humans to travel large distances throughout their history?
MaRussiya [10]

Answer:

The oceans/ships

Explanation:

Most of the earth is covered by water, and that water made it possible for humans to travel long distances throughout their history. From the early history; crusaders, pirates and other generations have been developing ships to move across the countries and continents to trade and invade. In that regard, they used vast oceans to travel large distances

7 0
3 years ago
Read 2 more answers
What is the yield to maturity of a ten-year, $1000 bond with a 5.2% coupon rate and semiannual coupons if this bond is currently
Anna35 [415]

Answer:

A. 6.82%

Explanation:

Yield to Maturity is a discounting rate which equals all the cash outflows related to bond with the present /current market value of bond. YTM is calculated by trial and error method. Since the options are available in the question, we can use those options to find out correct YTM.

First we are taking YTM 6.82%

Semi-annual YTM = 3.41%

Coupon Interest semi annual = 1000*5.2%*1/2

                                                 = $26

No of times interest paid = 10*2

                                          = 20

Present Value of bond

= Coupon Interest*PVIFA (YTM, 20) + Par Value x PVIF (YTM, 20)

= 26*PVIFA (3.41%, 20) + 1000*PVIF(3.41%, 20)

= (26*14.32884) + (1,000*0.511386)

= 372.55 + 511.39

= $884

At YTM 6.82% all the future cash flows of bond is equals to its current value.

Therefore, The correct YTM is 6.82%

4 0
3 years ago
The Cedian government believes that its citizens should have complete freedom in their economic and political pursuits, and the
Dvinal [7]

Answer:

The correct answer is letter "C": individualism.

Explanation:

Individualism is an economic idea that promotes less government intervention. In this economic scenario, individuals are the main characters influencing the fluctuations of the market based on demand and supply principles. Individualism is in favor of private ownership and self over collective interest.

7 0
3 years ago
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